ETFs taking a strategic place in pension portfolios
The 2008 financial crisis has been a game changer for exchange-traded funds in the pension space. As plan sponsors hunt for liquidity and access to new asset classes and strategies, ETFs have evolved from their largely tactical role in pension portfolios (think cash management) into a much more strategic position. That’s the main finding from experts at our 2017 ETF Roundtable, where we also talked about the growing role of ETFs as a substitute for derivatives and as a means of gaining exposure to the expanding fixed income universe. And as consultants bring them into the investment conversation and their track record expands, it looks as if ETFs have finally come into their own in the Canadian pension landscape.