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 TMX Group CEO John McKenzie, the deal will help expand its exchange-traded fund business globally.
“The exchange-traded fund is essentially one of the most significant innovations in investing in the history of the market – at least in the last twenty years. [to] 30 years,” McKenzie told CNBC's “ETF Edge” this week. “What we really wanted to do is … dig deeper into providing more support to our customers.”
Although ETF activity has cooled from 2022's records, 2023 action was still higher than previous years, according to iShares data.
McKenzie plans to use the VettaFi acquisition to enable the creation of more ETFs.
“ETF providers can create new products and great solutions so they can reach a broader investor audience,” said McKenzie. “That's all we're doing with that 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 exchange's toolbox, McKenzie hopes to create new ETFs that focus on Canada's economic strength and how they can reach international investors.
“We want to be more global than local,” McKenzie said. “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 2, TMX shares are up 11%.
Disclaimer