CETFA chair stresses investor education as key to success in ETF space

CETFA chair stresses investor education as key to success in ETF space

CETFA chair stresses investor education as key to success in ETF space As the Canadian Exchange Traded Fund Association marked its 25th anniversary, the newly elected chairman says there remains a great need for investor education given the predilection of that group turning to ETFs.

“The association does important work educating investors about ETFs,” says Atul Tiwari, the managing director of Vanguard Investments Canada, who was tapped to chair the CETFA back in June. “Investors are increasingly turning to ETFs for precise access to markets at a low cost, but there is still a great need for investor education.”

Canada is the birthplace of the ETF, which celebrated its 25th anniversary in March. Assets in ETFs in Canada are estimated to have totalled $85.5 billion in more than 400 ETFs from 10 ETF providers at the end of May, reflecting a 25 per cent increase in total assets for the one-year period.

Vanguard Investments Canada Inc. saw the total assets in its 21 ETFs surpass $5 billion at the end of May, a 100 per cent increase in total assets for the one-year period.

Vanguard is the third largest ETF provider in the country, now in its fourth year serving investors in Canada.

The Canadian ETF Association is the first ETF Association in the world – working to promote ETFs and to provide information, education and access to resources on ETF investing. Its mission is simple: to provide information, education and access to resources on ETF investing in Canada for both advisors and investors.

With 37 members, three committees, and five working groups, it has become a valuable asset to the financial services industry, says Tiwari.

“I am honoured to have been elected chairman of CETFA,” he says.

Tiwari’s company Vanguard operates under a unique operating structure. Unlike firms that are publicly held or owned by a small group of individuals, The Vanguard Group, Inc. is owned by Vanguard's U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by their investors.

This unique mutual structure aligns Vanguard interests with those of its investors and drives the culture, philosophy, and policies throughout the Vanguard organization worldwide. As a result, Canadian investors benefit from Vanguard's stability and experience, low-cost investing, and client focus, says Tiwari.