|By Marketwired .||
|July 24, 2014 07:00 AM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 07/24/14 -- Today BMO Global Asset Managment (BMO GAM) issued the Canadian ETF Outlook Update 2014. The report looks at key factors which have played a role in the growth of the Canadian Exchange Traded Fund (ETF) industry so far this year and expectations for future market trends for the remainder of this year and into next year.
At mid-year (as of June 30), the Canadian ETF industry sits at $70.1 billion in assets under management (AUM), up 11.1 per cent from year end 2013. So far this year, equity ETFs have had $529 million in inflows and fixed income ETFs saw impressive inflows of more than $2.5 billion. BMO GAM's ETF business recently surpassed $15 billion in AUM and currently consists of 58 funds.
"Capital markets are continuing to perform well and this has been reflected in the continued growth of the ETF industry in Canada," said Rajiv Silgardo, Co-CEO, BMO Global Asset Management. "Investors look to ETFs as portfolio construction tools used to access growth across sectors and geographies."
The report identified three key factors which have played a significant role in the ETF industry so far this year:
Competition and Growth: Continued growth results in more products being offered, and more competition. However, new strategies increase different forms of access to various asset classes. Additionally, the reduction of ETF management fees across major investment categories presents an opportunity for Canadians to invest very effectively in core broad market mandates.
International Efficiency: The use of Canadian ETFs for exposure to international markets will continue to gain popularity because of low fees and tax efficiencies compared to international products.
Smart Beta: Smart beta products which leverage alternative-weighting strategies, offer exposure based on various factors such as low volatility, momentum and quality. These products, targeting specific factors that provide specific investment outcomes over the long term, will continue to be successful.
Mr. Silgardo noted that providers have been focused on low volatility funds, which take advantage of rising markets while offering downside protection. Dividend-based products also offer some downside protection, while delivering higher and more tax efficient income from mature, stable companies.
Trends Moving Forward
According to the report, the substantial growth of ETF-based portfolios will continue, as these funds combine the efficiency, diversification and tradability of ETFs with professional active management.
As investors seek out income in the current low interest rate environment, option-based strategies that add income will expand globally and across sectors. Additionally, specialty solution ETFs will be in the spotlight as providers innovate to create products that will cater to specific investor needs.
ETFs have captured the attention of the market generally, but have been particularly significant for fixed income. Investors are reacting to market changes - specifically the ongoing American economic recovery - and are looking to position their bond portfolios in response to them. This could expand beyond Canadian bonds to U.S. and global fixed income ETFs.
"We expect the momentum into ETFs to continue at a rapid pace, as more investors use more ETFs to build better portfolios. This will result in more competition, innovation and benefits to users," added Mr. Silgardo.
To view the full report or for more information on ETFs, please visit: www.bmo.com/etfs.
About BMO ETFs
Since its inception in June 2009, BMO GAM's ETF business has grown to 58 funds; each offers numerous benefits to investors, including transparency, lower costs and tax efficiencies, while covering a number of diverse asset classes, sectors and regions.
BMO ETFs are managed and administered by BMO Asset Management Inc., a portfolio manager and investment fund manager and separate legal entity from Bank of Montreal.
Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
BMO Global Asset Management comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp. and BMO's specialized investment management firms.
®"BMO (M-bar roundel symbol)" is a registered trade-mark of Bank of Montreal, used under licence.
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Mar. 1, 2015 11:00 AM EST Reads: 2,679
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...
Mar. 1, 2015 11:00 AM EST Reads: 6,917
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
Mar. 1, 2015 10:30 AM EST Reads: 2,486
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add sc...
Mar. 1, 2015 10:00 AM EST Reads: 4,680
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
Mar. 1, 2015 09:45 AM EST Reads: 2,241
Data-intensive companies that strive to gain insights from data using Big Data analytics tools can gain tremendous competitive advantage by deploying data-centric storage. Organizations generate large volumes of data, the vast majority of which is unstructured. As the volume and velocity of this unstructured data increases, the costs, risks and usability challenges associated with managing the unstructured data (regardless of file type, size or device) increases simultaneously, including end-to-...
Mar. 1, 2015 09:45 AM EST Reads: 2,124
Mar. 1, 2015 09:45 AM EST Reads: 858
The excitement around the possibilities enabled by Big Data is being tempered by the daunting task of feeding the analytics engines with high quality data on a continuous basis. As the once distinct fields of data integration and data management increasingly converge, cloud-based data solutions providers have emerged that can buffer your organization from the complexities of this continuous data cleansing and management so that you’re free to focus on the end goal: actionable insight.
Mar. 1, 2015 09:30 AM EST Reads: 1,640
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mo...
Mar. 1, 2015 09:00 AM EST Reads: 2,884
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
Mar. 1, 2015 09:00 AM EST Reads: 2,674
The Internet of Things (IoT) is causing data centers to become radically decentralized and atomized within a new paradigm known as “fog computing.” To support IoT applications, such as connected cars and smart grids, data centers' core functions will be decentralized out to the network's edges and endpoints (aka “fogs”). As this trend takes hold, Big Data analytics platforms will focus on high-volume log analysis (aka “logs”) and rely heavily on cognitive-computing algorithms (aka “cogs”) to mak...
Mar. 1, 2015 09:00 AM EST Reads: 1,019
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
Mar. 1, 2015 09:00 AM EST Reads: 1,275
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon...
Mar. 1, 2015 09:00 AM EST Reads: 2,131
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics arc...
Mar. 1, 2015 09:00 AM EST Reads: 1,248
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understand...
Mar. 1, 2015 05:00 AM EST Reads: 2,360