Rise of robo-advisors in mortgage business could have an impact

Vancouver-based WealthBar Financial Services Inc. announced on Wednesday that it has joined the Canadian ETF Association (CETFA), marking the first time a robo-advisor has joined the organization.

“ETFs are an important investment instrument for WealthBar’s clients to keep fees low, and portfolios highly diversified,” says Neville Joanes, portfolio manager with WealthBar, in a statement. “By establishing stronger ties with institutions like the CETFA we are able to advocate for better and more innovative investment solutions for all Canadians.”

ETF usage is growing at high levels. According to the CETFA, the Canadian ETF industry saw assets under management (AUM) rise by approximately 27% in 2016 vs a year earlier, reaching a yearend total of $113.7 billion.

“We are pleased to welcome WealthBar to the CETFA, as our first financial technology member,” says Atul Tiwari, CETFA’s chairman, in a statement. “Following strong growth in ETF assets last year, we are excited to work with a broader roster of innovative providers to raise awareness and accessibility of ETFs in Canada.”

WealthBar, which announced in Janary that it had surpassed $100 million in AUM, offers its clients private investment portfolios that until recently were available only to affluent high net-worth investors in addition to low-cost ETFs.

CETFA represents 95% of the ETF assets in Canada, according to Pat Dunwoody, the organization’s executive director: “With WealthBar we now have 10 portfolio manager members. All of this makes for a very strong voice representing the ETF industry in Canada and fulfilling our mission of providing information, education and access to resources on the benefits of ETF investing.”

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