The exchange traded fund industry has reached its silver jubilee with the first ever ETF launched in Canada on the Toronto Stock Exchange 25 years ago this week.
That first fund, the TIPS ETF listed nearly three years before the first US ETF, the SPDR S&P 500 ETF (SPY) listed on 29 January, 1993.
“Twenty-five years marks an important milestone for the ETF industry which has grown significantly on many measures. ETFs have become a democratic investment tool and solution that are used by institutional investors, financial advisors and retail investors around the world to allow them to easily, transparently and at a lower cost than many other financial gain access to many asset classes and to developed, emerging and frontier markets,” says Deborah Fuhr, managing partner of ETFGI and independent research and consulting firm based in London.
The global ETF/ETP industry had 5,632 ETFs/ETPs, with 10,902 listings, assets of a record level of USD2.919 trillion in assets, from 245 providers listed on 63 exchanges in 52 countries at the end of February 2015, according to data from ETFGI’s preliminary monthly global ETF and ETP insight report.
At the end of February 2015, the Canadian ETF industry had 355 ETFs, with 502 listings, assets of USD65 billion, from 9 providers listed on the Toronto Stock exchange. Canada accounts for just 2.2% of the assets invested in ETFs/ETPs globally and has been an innovator in the ETF industry listing the first equity, fixed income and currency hedged ETFs to name a few of their firsts.
The TIPS ETF does not exist in its original form as it was merged on 7 March, 2000 with the HIPs (Hundred Index Participation Fund) tracking the TSX 100 index into the iUnits S&P/TSE Index Participation Fund (XIU CN). HIPs has subsequently been renamed as iShares S&P/TSX 60 Index ETF (XIU CN).