Core ETFs: No artificial colour or flavour

Core ETFs in Canadian portfolios are fundamental to achieving long term financial goals.

With the Canadian market having grown from fewer than 50 ETFs a decade ago to more than 750 today, the choice faced by Canadian investors is staggering. One constant, however, is that our iShares Core ETFs are a fundamental tool for investors to pursue their long term financial goals. While these products have grown to over $20B in AUM over the past decade1, we are confident that growth in the next decade will greatly exceed the last one. According to one BlackRock study, nearly one-third of Canadian investors now own ETFs, of which 93 per cent plan to buy more2.

The value of our Core product offering is extensive. Its growth has been driven by true underlying investor demand. The robust trading volumes reflect natural buying and selling by all types of end investors including institutional buyers, advisors and direct investing clients. This kind of healthy liquidity ecosystem leads to narrower spreads in the market which further helps drive down the cost of ownership for investors. They have successfully weathered numerous storms including taper, volatility and equity tantrums. Finally, they’re amongst the most efficiently priced products in the market today, offering investors core building blocks on which to help build their financial futures.

We believe these products represent an important starting point for portfolio construction by establishing a solid base from which to build. We also believe that factor, active, private investments, etc. may all play an important role in portfolios through an investor’s life cycles, but only when used on top of a solid foundation. As portfolios of all sizes continue to evolve, iShares Core funds will continue to help investors achieve their financial goals.


1 BlackRock Canada, as of June 30, 2018

August / September 2016 BlackRock Canada ETF Pulse Survey


Pat Chiefalo is the Head of iShares Canada at BlackRock and a contributor to The Blog in Canada.

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