Mirae Asset’s Horizon ETFs hits $2 Billion AUM

[Courtesy of Mirae Asset Global Investments]

Horizons ETFs Management (Canada) Inc., the Canada-based asset management firm and overseas subsidiary of South Korea’s Mirae Asset Global Investments Co., topped 3 billion Canadian dollars ($2.2 billion) in assets under management (AUM), according to Mirae Asset Global Investments on Thursday.

Horizons ETFs’ AUM stood at 30.5 billion Canadian dollars as of Wednesday, about nine times higher than the 3 billion Canadian dollars at the time of its acquisition by Mirae Asset Global Investments in November 2011. The number of products also increased to 121 from 70 during the same period.

Horizons ETFs has been rapidly growing in the Canadian exchange-traded fund market, and is currently the fourth player in the market following affiliates of major local banks, which account for more than 50 percent of the market, and the U.S.’ Vanguard Group Inc. Over the past five years, Horizons ETFs recorded a growth rate of 27 percent while the Canadian ETF market’s annual growth rate stood at 20.8 percent during the same period.

Horizons ETFs’ AUM saw significant growth in 2023 despite the global economic downturn, increasing to 30.5 billion Canadian dollars at the end of 2023 from 22.8 billion Canadian dollars at the end of 2022. Amid prolonged high-interest rates, interest in bond and interest rate ETFs in Canada is rapidly growing as well, leading to significant inflows of funds exceeding 5.5 billion Canadian dollars into the firm’s bond ETFs and ETFs that track savings rates over the past year alone.

Canada is a major global ETF market, ranking third after the U.S. and European markets. According to global ETF tracker ETFGI, the Canadian ETF market was worth about 401 billion Canadian dollars (296 billion dollars) with over 1,100 products listed as of November 2023. The Canadian market is known for relatively flexible regulations for financial products compared to other markets, encouraging asset managers to actively try out various innovative products.

“As a leading ETF manager in the Canadian market, Horizon ETFs has provided a diverse array of products, offering investors a broad range of options for varying market conditions,” Mirae Asset Global Investments President Kim Young-hwan said. Kim added that the firm’s commitment to introducing competitive products that reflect the demands of local investors in the Canadian ETF market.