Third bank enters ETF market… and Canada gets new finance minister.

Third bank enters ETF market… and Canada gets new finance minister.

Third bank enters ETF market… and Canada gets new finance minister. The most important news of the day: Justin Trudeau names Bill Morneau finance minister.

In other news, TD Wealth Management is getting into the ETF business in early 2016.

“In early part of next year, we'll be rolling out our proprietary suite of ETFs, both passive and active in nature,” Leo Salom, executive vice-president of TD Wealth Management, said during the TD Retail Investor Day last month. “[Clients] are looking for lower-cost solutions. They want to avoid paying full-service brokerage fees, but yet they're willing to pay for asset allocation and investment guidance.”

Bank of Montreal and Royal Bank of Canada already operate in the ETF market in Canada with BMO controlling approximately 27% of the $87-billion market, second only to iShares but ahead of Vanguard.  

In a statement to the Globe and Mail, TD Asset Management CEO Tim Wiggan was enthusiastic about the bank’s foray into ETFs.

“We listened to our clients and their advisers, and are continually evolving our solutions to meet their needs,” Wiggan stated.

There are now 12 ETF providers in Canada with the entry of TD giving Canadians and their advisors ample choice.

 “Distribution is to financial services what location is to real estate. And while ETFs are distributed in many of the same channels as mutual funds; an ETF product lineup will grab a slice of the investor pie that firms like CI and TD don’t have today,” Dan Hallett, vice-president and principal with HighView Financial Group told the Globe and Mail. “It makes sense for them to enter the ETF space from a business perspective since there is likely a good amount of growth ahead for ETFs, thanks in part to pending regulatory changes.”