The parent company of the Toronto Stock Exchange has already completed a major deal this year: the acquisition of education company ETF VettaFi.
According to TMX Group CEO John McKenzie, the deal will help expand the exchange-traded fund business around the world.
“The exchange-traded fund is, in fact, one of the most important innovations in investing in the history of the market – at least in the last 20 years. [to] 30 years,” McKenzie said on CNBC’s “ETF Edge” this week. “What we really wanted to do was…dig deeper into providing more support to our customers.”
While ETF activity was down from 2022’s records, 2023 activity was still higher than previous years, according to ETF data. iShares data.
McKenzie plans to use the VettaFi acquisition to facilitate the creation of more ETFs.
“ETF providers can create new products and great solutions to reach a broader investment audience,” McKenzie said. “This is one of the two punches of what we do with this investment.”
TMH ETF Screener as of Friday, there were 1,264 ETFs and ETF-related funds listed on the Toronto Stock Exchange.
With VettaFi’s exchanges under its belt, McKenzie hopes to create new ETFs focusing on Canada’s economic strengths and how they can attract international investors.
“We want to be more global than local,” McKenzie added. “This is a big advantage 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 2, TMH shares rose 11%.
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