Horizons ETFs to change name in May

By Melissa Shin | March 6, 2024 | Last updated on March 6, 2024
2 min read
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Horizons ETFs Management (Canada) Inc. will change its name to Global X Investments Canada Inc. in May, a move that consolidates two brands owned by South Korea–based Mirae Asset Financial Group.

Horizons’ ETFs will keep their tickers and mandates, but funds with “Horizons” in their names will rebrand with the Global X name in May.

Horizons was founded in Toronto in 2005 and purchased by Mirae in 2011, while Global X Management Company LLC was founded in New York in 2008 and purchased by Mirae in 2018.

“Speaking to clients and partners, one of the areas people gravitated toward and was less well-known was our global strength,” Rohit Mehta, president and CEO of Horizons, said in an interview. “All the things people know and love Horizons for — our innovation framework — we’re going to continue to embrace, [which also is] culturally part of Mirae and Global X.”

Mehta has led Horizons since May 2023, when he took over for interim CEO Jasmit Bhandal, who remains Horizons’ chief operating officer.

Over the next five years, Horizons wants to double its assets under management (AUM) and increase its market share to 10%. Horizons had $30.6 billion in AUM as of Feb. 29, equalling 7.5% market share, according to National Bank Financial.

“Horizons ETFs is the fourth-largest ETF provider in Canada, which has built a well-rounded lineup of ETFs across all major asset classes over the years,” said Tiffany Zhang, vice-president of ETFs and financial products research with National Bank Financial. “It is well-known for being an innovator — launching the first marijuana ETF in the world, [its] unique total-return ETF suite in Canada, and thematic ETFs such as semiconductor, hydrogen and lithium ETFs.”

Horizons has been in fourth place since March 2015, when it had $4.5 billion in AUM (5.4% market share), and Vanguard Investments Canada Inc. had $4.7 billion in AUM (5.6% market share), per National Bank.

As of Feb. 29, Vanguard has 13.4% share, BMO Global Asset Management 22.7% and RBC iShares 27.9%.

In June, Mehta told Advisor.ca sister publication Investment Executive that Horizons is always open to growth by acquisition, but that no deals are in the works. Mehta said that’s still true today.

Mehta said he admires Global X’s strength in thematics ETFs, and that Horizons will “look to continue to see ways that we can partner and grow together in that space.”

Mehta said Canadian investors already own about $1 billion in U.S.-listed Global X assets.

“The rebranding may help shed some light on [Global X’s] Horizons ETFs counterparts, which could be beneficial to local investors from a tax-efficiency perspective,” Zhang said.

Mehta said he’s optimistic about Horizons reaching its growth goals, especially as the firm grew its AUM by $7.6 billion between 2022 and 2023, the firm’s largest increase to date.

“We really look at this as being able to continue to enhance the strong growth we’re already experiencing,” he said.

Mirae Asset Financial Group also owns TIGER ETF, an ETF provider in South Korea, and Mirae’s global ETF AUM totals more than $154 billion.

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Melissa Shin

Melissa is the editorial director of Advisor.ca and leads Newcom Media Inc.’s group of financial publications. She has been with the team since 2011 and been recognized by PMAC and CFA Society Toronto for her reporting. Reach her at mshin@newcom.ca. You may also call or text 416-847-8038 to provide a confidential tip.