Why has a Canadian ETF provider turned its back on the TSX?

Why has a Canadian ETF provider turned its back on the TSX?

Why has a Canadian ETF provider turned its back on the TSX? In a move that is sure to make all Canadian investors take note, BlackRock Canada has announced its intention to move the listing venue for five of its iShares funds, consisting of 12 ETF listings, from the TSX to NEO, Canada’s newest stock exchange. The asset management giant’s 12 ETF listings will begin trading as NEO-listed securities during the fourth quarter 2016. Blackrock’s decision marks the first time a Canadian ETF provider has switched listings from the TSX to an alternative exchange. 
 
“We’re thrilled to announce this new collaboration with the NEO Exchange, and believe it is a positive step forward in encouraging greater competition in Canada’s ETF ecosystem,” said Warren Collier, Head of iShares, BlackRock Canada. “Exchange diversification has played an important role in iShares’ global listing strategy as we believe it will help to foster further innovation and ultimately enhance the experience of investors.”
 
Since its launch in March 2015, NEO has become the second largest trading venue for ETFs in Canada, and currently facilitates 25% of all ETF trading volume in the country.
 
“It is clearly a vote of confidence that the largest asset manager in the world is now listing funds on the NEO exchange; it means a lot,” said Jos Schmitt, President and Chief Executive Officer, NEO Exchange. “It also demonstrates that this type of migration is perfectly doable and not complex. It’s confirmation of the competition that NEO is bringing to the Canadian market.”
 
Blackrock Canada will move the common units and advisor class units of the following five iShares Funds to NEO:
 
Fund Name Tickers
iShares International Fundamental Index ETF CIE, CIE.A
iShares Japan Fundamental Index ETF (CAD-Hedged) CJP, CJP.A
iShares US Fundamental Index ETF CLU, CLU. A, CLU.B, CLU.C
iShares Emerging Markets Fundamental Index ETF CWO, CWO.A
iShares Canadian Fundamental Index ETF                 CRQ, CRQ.A
 
 
 
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