The parent company of the Toronto Stock Exchange has already completed a major deal this year: the acquisition of ETF education company VettaFi.
According to John McKenzie, CEO of TMX Group, the deal helps expand the exchange-traded fund business globally.
“The exchange-traded fund is essentially one of the most important investment innovations in the history of the market – at least in the last 20 years [to] 30 years,” McKenzie told CNBC’s “ETF Edge” this week. “What we really wanted to do is…go deeper into providing more support to our customers.”
Even though ETF activity has cooled from 2022’s records, activity in 2023 was still above previous years, according to iShares data.
McKenzie plans to use the VettaFi acquisition to facilitate the creation of additional ETFs.
“ETF providers can develop new products and great solutions to reach a broader investor audience,” McKenzie said. “That is the decisive advantage of our investment.”
TMX’s ETF Screener lists 1,264 ETFs and ETF-related funds on the Toronto Stock Exchange as of Friday.
With VettaFi in the stock market’s tool belt, McKenzie hopes to create new ETFs that focus on Canada’s economic strengths and how they can reach international investors.
“We want to be more global than local,” McKenzie added. “This is a great asset to help us build not just in the U.S., not just in Canada, but around the world.”
Since the acquisition was completed on January 2nd, TMX Shares are up 11%.
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2024-03-02 16:00:01
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