The Canadian exchange-traded fund (ETF) market continued its upward trend in the first half of 2014 with double-digit growth, according to Toronto-based BMO Global Asset Management Inc.’s (BMO GAM) Canadian ETF Outlook Update 2014, an advancement that is unlikely to change any time soon.

According to the report, released on Thursday, the Canadian ETF market had $70.1 billion in assets under management (AUM) as of June 30, 2014 – an increase of 11.1% since 2013. This increase is almost identical to the 11.9% increase seen in 2013. Mark Raes, vice president and head of product, BMO GAM, believes this trend will not only continue but is likely to accelerate in the coming years.

“[The ETF market is] a really exciting place to be,” says Raes. “And I think the industry [growing] 11% is something we can even do better than and I think that’s a result of more investor acceptance, different kinds of investors [choosing ETFs], more awareness and understanding of the products.”

One of the beneficial trends of this growing ETF market, according to Raes, is the competition in terms of fees and new products. “When you see the benefits of competition – the benefits of new products, new ideas – it’s giving investors access to new solutions,” he says, “it’s giving investors outcome oriented investments that really change the landscape.”

As well, the generally lower fees of ETFs will also benefit advisors as the client relationship model (CRM 2) is implemented. “There’s going to be greater scrutiny on fees,” he says. “[ETFs are] very efficient vehicles, low cost vehicles. They align very well with how the market seems to be headed.”

Another trend that is likely to continue in the Canadian ETF market is the interest in smart beta products and funds with international exposure, according to the report. Fixed income ETFs have also continued to do well – seeing inflows of over $2.5 billion – which was somewhat unexpected, according to Raes, given the concerns around rate volatility at the start of the year.

With the ETF market growing so quickly, advisors have to stay ahead of the curve and educate themselves about the myriad of the current and upcoming products on the market. Raes recommends advisors work with product providers to learn all the details of these funds. “As these products grow and diversify, advisors really need to understand the differences between them,” he says. “Even with the products that have very similar names, there might be different ways of approaching a desired exposure.”