He also sees a “proliferation” of alternative ETFs, such as market-neutral hedge fund strategy and commodity futures that did well in 2022, which could “grab some of the spotlight in 2023.”
However, she expects the industry to become leaner as providers streamline operations due to falling profits amid the market selloff. Dan Bortolotti, portfolio manager and certified financial planner at PWL Capital Inc. in Toronto, believes HISA ETFs will remain popular in 2023, assuming interest rates remain elevated. Not only do they offer higher yields than most savings accounts, he says, but the products are liquid and well-diversified, with the ability to spread exposure across many banks.He also sees tax-efficient ETFs as being more popular for non-registered accounts.
Mr. Lala says any bond product would be an active strategy using a third-party manager similar to its existing partnerships with Addenda Capital Inc. and Allianz Global Investors.