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The Toronto Stock Exchange’s parent company has already completed one big deal this year: the acquisition of ETF education company VettaFi.
According to John McKenzie, CEO of TMX Group, the deal helps it expand its exchange-traded funds business globally.
“Exchange-traded funds are essentially one of the most significant innovations in investing in the history of the market – at least in the last 20 [to] 30 years,” McKenzie told CNBC’s “ETF Edge” this week. “What we were really looking to do is … dive deeper into providing more support to our clients.”
Even though ETF activity fell short of its 2022 record, action in 2023 was still above previous years, according to iShares data.
McKenzie plans to use the Betafi acquisition to facilitate the creation of more ETFs.
“ETF providers can create new products and great solutions so they can reach a broader investment audience,” McKenzie said. “Those are the two aspects of what we’re doing with that investment.”
TMX’s ETF screener lists 1,264 ETFs and ETF-related funds listed on the Toronto Stock Exchange as of Friday.
With Vettafi in the exchange’s tool belt, McKenzie hopes to create new ETFs focusing on Canada’s economic strengths and how they can reach international investors.
“We want to be more global than local,” McKenzie said. “It’s a great property To help us build not just in America, not just in Canada, but around the world.”
Since the acquisition was completed on January 2, tmx Shares are up 11%.
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