The parent company of the Toronto Stock Exchange has recently finalized a significant deal: the acquisition of VettaFi, an ETF education company. TMX Group CEO John McKenzie views this acquisition as a strategic move to enhance the global reach of their exchange-traded fund business.
In an interview with CNBC’s “ETF Edge,” McKenzie emphasized the significance of exchange-traded funds in the history of investing, highlighting their role as a pivotal innovation in the marketplace over the past few decades. He explained that the objective behind the acquisition was to offer enhanced support to their clients by delving deeper into the ETF sector.
While ETF activity might have subsided from its peak in 2022, data from iShares indicates that 2023 still saw robust activity compared to previous years.
McKenzie envisions leveraging the VettaFi acquisition to facilitate the creation of more ETFs. He believes that this move will empower ETF providers to develop new products and solutions to cater to a wider investing audience, thereby strengthening TMX’s position in the market.
TMX’s ETF Screener currently lists 1,264 ETFs and ETF-related funds on the Toronto Stock Exchange. With VettaFi now part of TMX’s arsenal, McKenzie aims to introduce new ETFs focusing on Canada’s economic strengths and their appeal to international investors.
McKenzie emphasizes TMX’s ambition to become a global player rather than confining itself to the local market. He sees the acquisition of VettaFi as a valuable asset in their pursuit of expanding their presence not only in the United States and Canada but also worldwide.
Since the completion of the acquisition on January 2nd, TMX shares have risen by 11%.
