ETF News

Innovation as an investment theme has grown in popularity in recent years, driven by the growth of the information technology sector and, more recently, by the rapid advancement of Artificial Intelligence. As the technology landscape expands, investing in firms that are either primarily or tangentially related to technological advancement has become top of mind for investors; as such, ETF manufacturers are bringing to market solutions that reflect this investment thesis as comprehensively and broadly as possible.

ETF Comparison: FINN vs. ZGIN

For Canadian investors interested in innovation on a global scale, the Fidelity Global Innovators ETF (Ticker: FINN) and BMO Global Innovators Fund Active ETF Series (Ticker: ZGIN) are two solutions that seek to reflect this theme. Using Cboe Canada’s ETF Market comparison tool, investors can gain both qualitative and quantitative insights into how the funds differ.

 FINN aims to identify companies that have the potential to be ‘disruptive and/over innovative’ in their industry. The managers of the strategy identify these firms by (i) their ability to develop or produce innovative technologies, (ii) whether they use new technologies to displace established markets, methods, industries, or technologies, (iii) their ability to become leaders in new and emerging industries; or (iv) their usage of innovative business models, processes or technologies to gain a competitive advantage.

While these characteristics help identify companies within the investment opportunity set, investing in the company's shares at a reasonable valuation and considering factors such as the firm's financial condition, market share, growth potential, and the prevailing economic environment are also paramount. FINN is size agnostic and can invest in private offerings.

Regarding ZGIN, the innovation focus is centred on companies developing innovative products, processes, or services, or those that may benefit from net-new innovations coming to market. The fund's managers employ fundamental analysis to identify and select equities that trade below their intrinsic value and demonstrate superior earnings growth.

Qualitatively, both ETFs are actively managed and have a global focus. In terms of size, FINN has more assets under management, despite both mandates launching around the same time. Pertaining to cost, while FINN does have a lower management fee, ZGIN has a lower management expense ratio due to BMO waiving some of the ETF’s expenses.

From a performance perspective, as shown in the growth chart, FINN has demonstrated a stronger long-term return profile. While ZGIN has displayed a slim outperformance in shorter time periods (i.e., 3 Months, Year to Date, and 1 Year), FINN has been the clear outperformer. Additionally, FINN has garnered substantially more flows across the trailing time periods.

From a composition standpoint, looking at the respective product pages (i.e., FINN and ZGIN) of each solution, there is a predominant exposure to the information technology sector (FINN: 57.5% as of June 2026 vs. 62.95% as of July 2026). While both mandates’ exposure to the United States is to be expected, ZGIN’s exposure to Asia (Japan: 13.13%, South Korea: 10.90%, Taiwan: 10.53%, and China: 1.57%) is significantly more than FINN’s (Taiwan: 5.4%, Japan: 4.4%, South Korea: 3.1%); which is noteworthy given the significance of these regions in semiconductor development.

Takeaway

While the innovation theme has rewarded both ETFs, FINN's leading performance and strong flows are material differentiators that make it the stronger choice.  For Canadian investors seeking a solution that captures the innovation theme in a globally oriented manner, FINN is worth considering.

This article was written on August 19th, 2026. Please note that this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.