The acquisition of VettaFi, an ETF education company, was a big deal that the parent company of the Toronto Stock Exchange closed earlier this year.
The deal helps TMX Group's exchange-traded fund business expand globally, according to CEO John McKenzie.
"The exchange-traded fund is essentially one of the most important innovations in marketplace history — at least in the last 20 [to] 30 years," McKenzie said this week on CNBC's "ETF Edge." "Our main objective was to delve further into offering our clients additional support."
According to iShares data, ETF activity in 2023 was higher than previous years, however it has cooled off from its peaks set in 2022.
With the acquisition of VettaFi, McKenzie intends to pave the way for additional ETF development. McKenzie stated that ETF providers have the ability to attract a wider range of investors by developing innovative products and solutions. "So, that's the two-pronged approach to that investment."
As of Friday, 1,264 exchange-traded funds (ETFs) and funds associated to ETFs were listed on the Toronto Stock Exchange in TMX's ETF Screener. Using VettaFi as a springboard, McKenzie intends to launch new exchange-traded funds (ETFs) that capitalise on Canada's economic advantages and attract investors from around the world.
Adding, "We want to be more global than local," McKenzie expanded on the issue. "This is a fantastic resource that will aid in our construction efforts globally, not only in the United States and Canada."
The deal was finalized on January 2nd, and TMX shares have increased by 11% since then.
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