Morley Conn

They are keeping up to speed and they are getting involved in more products over time that do have sophistication.

So I just think it's a matter of time before we do start to see more derivative-based strategies grow in the Canadian market.

And perhaps that means that, yes, we are going to have more ETF slop.

It's just a matter of what investors are looking for over time as their tastes change and they become more sophisticated in some of what they're looking to achieve.

There is different wrappers.

The ETF one just seems to be becoming more popular over time.

Yeah.

ETFs in the US are more advantageous for investors down there.

Yes.

There is a bigger difference between utilizing ETFs and ETFs are more attractive vis-a-vis mutual funds in the US from a tax standpoint.

In Canada,

ETFs, because of some of the secondary trade that we mentioned before, they do have some tax advantages that aren't available to mutual funds, but they're not quite as attractive in comparison to mutual funds as US ETFs are.

In the US market, ETF holders do not have to be concerned about

with absorbing the capital gains of other holders of their funds.

That capital gain pinpointed will be isolated to that investor.

Whereas yes, up here in Canada, if you own an ETF and you aren't transacting,

There is still the possibility, even though we have the capital gains refund, there is the possibility that you will still be impacted from a tax standpoint if transactions do occur in the fund and you aren't involved in them.

That is a big difference between the two jurisdictions.

One of the biggest ones is, and this is institutions as well that will do this, is that they'll look at the assets under management

And if they're not, for example, a billion, they won't have interest in investing.