Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Mirae Asset's Canadian ETF unit achieves ninefold growth in assets
A banner at an exchange in Canada celebrates Horizons ETFs surpassing 30 billion Canadian dollars, or $22.8 billion, in assets under management, in this undated photo. Courtesy of Mirae Asset Global Investments
By Lee Yeon-woo
Mirae Asset Global Investments' Canadian subsidiary, Horizons ETFs, saw its assets under management (AUM) surpass $22.8 billion, the company said Friday.
Horizons ETFs has experienced significant growth since Mirae Asset's acquisition in November 2011. At the time of purchase, its AUM were valued at $2.2 billion. This figure has since increased approximately ninefold, reaching $22.8 billion, or about 30 trillion won as of Wednesday. The number of products offered by the company has also expanded from 70 to 121. This growth has positioned Horizons ETFs as the fourth-largest exchange traded funds (ETF) manager in Canada by AUM.
Canada is considered one of the major players in the global ETF market. According to the research firm ETFGI, there were 1,100 ETF products listed on the Canadian market as of last November, with their total volume reaching $296 billion.
"Canada is an innovative market where asset management firms can proactively try various products, thanks to its flexible regulations on products and fund structure. This flexibility is notable even among major markets, including the U.S.," an official from Mirae Asset Global Investments said.
Horizons ETFs, in particular, boasts a distinguished line-up, including the "Horizons Equal Weight Banks" which invests in the big six banking stocks in Canada, and the "Horizons High Interest Savings" known for yielding higher interest rates compared to the market rate.
As a result, Horizons ETFs achieved 27 percent annual growth, surpassing the Canadian ETF market's average growth of 20.8 percent over the past five years.
"As a front-runner in the Canadian market, Horizons ETFs offer a diverse array of products suited for investors looking to adapt their portfolios to varying market conditions. Our range includes passive, leveraged and inverse, as well as income-focused products," Young Kim, President of Mirae Asset Global Investments said.
"In the rapidly growing Canadian ETF market, we are dedicated to launching competitive products that meet the needs of local investors."