So, with the dollar seemingly stuck at 80 cents, the need to be hedged isn’t a priority for most Canadians at the moment yet investors and advisors alike continue to pile into its hedged version of the S&P 500 index ETF.
As for the state of ETFs in this country, Rebetez was quick to pour some cold water on the victory parade.
“The only thing’s going to change things in a bigger way is with the wealth transfer to the younger generation and with strong advocacy on the part of a variety of different players in the marketplace. In other words, until you really crank up the volume for people to really wake up and realize the demographics are against us.”
He elaborates on this point.
“The great returns we’ve had from the bottom in 2009 have been had. At some point, things could get very dangerous.”
And ETFs could be at the top of the list because according to Rebetez, only a small number of investors actually know that ETFs exist.
“The game’s working fine for advisors [selling mutual funds].”