Richard Kang1

In Search of an Actively Managed ETF: Does it Already Exist?

Ikariagirl: I don't know the answer to question 1 and I don't know what's your point in question 2. I believe your question 3 has some false premises but I think the main point is that I don't want to get into a discussion that basically leads down a path pitting one exchange versus another. I'm actually not sure if the issue you are talking about is with the exchanges or with the regulators. I think you have come to the correct conclusion that the Canadian ETF industry has been built by American firms (BGI mainly and now Claymore and PowerShares/BetaPro). I don't see the immediate significance if the innovation is coming from US or Canadian brains. The industry is young so I think there's time for new entrants to stake a claim in this industry. You and "your story" might be one of these new entrants. I appreciate your thanks for the article but I read a certain negative tone in your comment, not necessarily to me but to the Canadian industry and it's inability to provide real, as you say "made in Canada" innovation. When I say innovation is coming out of Canada, it is. First ETF, first bond ETF, first BRIC ETF, first actively managed ETF. All first available in Canada. Your point seems to be that, although my point is true, the real source of this innovation is from US based providers operating in Canada. Think of other industries with US based participants here in Canada. Not a big difference. If you want to deal with real innovation in the ETF space, I think you should be talking with parties in the US and UK. It's in this arena where I spend the vast majority of my efforts. You should be talking with many of the newer or startup ETF shops as well as the VC firms that advise/capitalize them. They will be better able to value your story.