Horizons ETFs Surpass CAD 30 Billion in Assets Under Management

Mirae Asset Global Investments Grows 9x After Acquisition
Number of Products Increases from 70 to 121

Mirae Asset Global Investments announced on the 11th that the assets under management (AUM) of its Canadian exchange-traded fund (ETF) subsidiary Horizons ETFs have surpassed 30 billion Canadian dollars.

Horizons ETFs is a Canadian ETF management company acquired by Mirae Asset Global Investments in November 2011. At the time of acquisition, the AUM was around 3 billion Canadian dollars (2.2 billion USD), which has grown approximately ninefold. As of the 10th, the AUM exceeded 30.5 billion Canadian dollars (about 30 trillion KRW). The number of products increased from 70 to 121.

Canada is one of the major ETF markets alongside the United States and Europe. According to ETFGI, as of November last year, the Canadian ETF market size was 296 billion USD with over 1,100 products listed. Compared to major markets such as the U.S., regulations related to product and fund structures are relatively flexible, making it an innovative market where asset managers actively try various products.

Horizons ETFs has grown to become the 4th largest Canadian ETF manager by assets under management. Currently, major banks’ affiliated asset managers hold more than 50% market share in the Canadian ETF market. Following bank affiliates and the largest U.S. asset manager Vanguard, Horizons ETFs is leading the Canadian ETF market. In April last year, Rohit Mehta, a financial expert with over 20 years of experience in Canadian asset management, was newly appointed CEO and is actively expanding the business.

Horizons ETFs is rapidly growing based on a differentiated product lineup including ‘Horizons Equal Weight Banks,’ which invests in six major Canadian bank stocks, and ‘Horizons High Interest Savings,’ which offers interest rates higher than market rates. Over the past five years, the Canadian ETF market has grown at an average annual rate of 20.8%, while Horizons ETFs has grown at an average annual rate of 27%.

The assets under management increased from 22.8 billion Canadian dollars at the end of 2022 to 30.5 billion Canadian dollars at the end of 2023. With the prolonged high interest rate environment, bond and interest rate ETFs have attracted significant attention in Canada. Last year, more than 5.5 billion Canadian dollars flowed into bond and deposit interest rate ETFs such as ‘Horizons CDN Select Universe Bond’ and ‘Horizons High Interest Savings.’

To celebrate surpassing 30 billion Canadian dollars in assets under management, Horizons ETFs held a meaningful event where all employees gathered to personally wrap gifts and donate them along with monetary contributions to charity organizations.

Kim Young-hwan, CEO of Mirae Asset Global Investments, introduced, "Horizons ETFs is a leading ETF manager in the Canadian market, offering a variety of products including passive, leveraged and inverse, and income types so that investors can utilize them in their portfolios according to market conditions." He added, "We will strive to present competitive products reflecting local investment demand in the Canadian ETF market, which is a major global market with high growth potential."