America’s economy has enjoyed a period of growth in recent months and First Trust Portfolios
Canada (FTPC) will be hoping for a repeat performance as they have just announced a full suite of U.S sector ETFS due for release by the end of October.
Toronto based FTPC revealed the plans on Wednesday and will launch nine new ETFs, bringing the company’s full line-up to sixteen. Each of the newcomers will have a management fee of up to 0.70% and will represent a specific U.S sector.
FTPC’s official statement comes on the back of a recent CIBC report which indicates Canada, and Ontario in particular, is set to benefit from America’s success. Ontario’s GDP typically follows a fairly tight correlation to the U.S economy and CIBC’s leading economists think the Canada’s most populous province is about to reap the rewards.
CIBC predicted the province’s economy will grow by 2.8 per cent in 2015 and a further 2.4 per cent in 2016, outstripping the national average for the first time in over a decade. “It’s quite clear that the tide that used to be turning against Ontario is now actually beginning to give it a bit of a lift,” said chief economist Avery Shenfeld.
Shenfeld joined forces with senior economist Warren Lovely in a report which indicates Ontario could soon see improved government bonds and revenues, more private sector investment and more jobs. The report goes on to suggest $4 billion - $5 billion could be injected into the provincial government’s resources over the next two years.
FTPC are placing their bets on a full U.S recovery and it seems their confidence has certainly been bolstered by CIBC’s study. Ontario’s encouraging projected growth came second only to Alberta which has a forecasted growth of 3.5 per cent for 2015.