A New Horizon: Horizons ETF Management Canada to rebrand as Global X
The rebrand reflects the firm’s objective of being more globally oriented and the fund provider of choice for investors across Canada.
Horizons ETFs is entering a new era, as the firm announced last month that it will be changing its name to Global X Investments Canada Inc.; to align with the New York-based Global X ETFs, which is owned and operated by Horizons’ parent company, Seoul-based Mirae Asset Financial Group.
Against the backdrop of a growing ETF market in Canada, Horizons ETFs has established a reputation as a novel and innovative ETF provider known for its actively managed ETFs. While Horizons ETFs is currently Canada’s fourth-largest exchange-traded company, the rebrand that the firm will undertake speaks to the vision they have for the future, as they look to double their assets under management and boost ETF market share to 10 percent over the next five years. Presently, the firm has over $30 billion of assets under management and 117 ETFs listed on major Canadian stock exchanges.
Expanding the Global X brand
Global X ETFs is one of the world’s largest ETF platforms, with an international footprint spanning across Europe, Asia, South America, and Australia, as well as the United States. In adopting the Global X name, Horizon ETFs will benefit from the strength, extended reach, and global network of experts that come with an internationally recognized brand. In speaking to benefits that will be derived from this corporate changeover in the firm’s press release, Rohit Mehta, President and CEO of Horizons ETFs stated ”By aligning to the Global X brand and the bench strength it brings, we’re building a new model in our industry for developing and delivering innovative products for Canadians”.
Regarding the benefits to Canadian investors, Mr. Mehta noted, “As we harness the strength and reach of our global network, the investment opportunities for Canadians will also expand. By working with us, our investors can expect greater global insights and an enhanced investment experience, while continuing to receive trusted Canadian expertise. Today, we’re ready for your future”. The last quote provided by Mr. Mehta is especially noteworthy, as Horizon ETFs will continue to be committed to using Canadian-based investment expertise, even after the rebrand.
Regarding Horizons ETF rebranding, Mirae Asset Founder and Global Strategy Officer Hyeon-Joo Park stated, “Over its history, Horizons ETFs has built a reputation as a ‘Permanent Innovator’ in the Canadian market. Now, under the Global X brand, that status and the services that come with it, become exactly that – global. With the full strength of Mirae Asset behind it, I am confident their on-the-ground expertise in Canada under the leadership of CEO Rohit Mehta, alongside our international network’s opportunities, technologies, and insights from experts across the world will create a better investment experience for Canadians.”
In 2011, Horizons ETFs was acquired by Mirae Asset Global Investments, one of the world’s largest asset managers, and became part of Mirae Asset Financial Group, which manages more than CAD 710 billion in assets across 19 countries and markets.
Changes in Horizons ETFs product line-up
With the rebrand slated to occur in May 2024, a natural question is what implications this change will have on the firm’s product line-up. The firm’s ETF offerings will continue to trade under their current symbols and mandates, while the Horizons branded fund names will be updated to the Global X brand. Presently, the firm has paused new product launches during this transitional period, however, the firm did officially terminate nine ETF offerings on March 28th, 2024.
The Horizons ETFs product line-up provided a vast offering of equity, fixed income, alternative, and money market solutions that investors can utilize. At present, the Horizons High-Interest Savings ETF (Ticker: CASH) is the largest fund on the product shelf, with an AUM of CAD 4.86 billion. The Horizons S&P/TSX 60 ETF (Ticker: HXT) and Horizons S&P 500 ETF (Ticker: HXS) are the second and third largest ETF offerings, with AUMs of CAD 3.87 billion and CAD 3.44 billion respectively.
Conclusion
As the Canadian, and global, ETF landscape becomes more competitive, ETF providers are continually looking to scale up their operations and enhance the sophistication of their product offerings for the benefit of investors. With Horizons ETFs rebranding to Global X Investments Canada Inc., the firm is endeavoring to grow its Canadian market share by leveraging the name and institutional knowledge of a global ETF provider, and ultimately bolstering the value proposition they can provide to Canadian investors.
Please note 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.
