ETFs provide flexibility for DIY investors amid record inflows: expert

As more Canadians are allocating assets to exchange-traded funds (ETFs), one expert says ETFs provide financial flexibility and empower do-it-yourself (DIY) investors.

Bipan Rai, managing director and head of ETF and structured solutions strategy at BMO Global Asset Management, said in an interview with BNN Bloomberg Monday that the Canadian ETF market has continued to grow as investors have become more advanced. Earlier this month, Bloomberg News reported that in 2024, assets in Canadian ETFS surpassed $500 billion for the first time.

“It really does speak to the fact that investors are becoming more and more sophisticated. And also the ETF allows them to track and really follow financial strategies that they wouldn’t be able to several decades ago. So, it does mark a significant milestone for the growth of the industry. We feel there’s plenty left to go going forward.”

According to Rai, ETFs allow investors to get exposure to different areas and seek diversification. He added that ETFs present opportunities for the “do it yourself investor.”

“I really do equate the ETF to sort of the modern version of the printing press and what it did to expand literacy in the developed world,” he said.

“ETFs are the same sort of financial innovation tool that really allows your do-it-yourself investor, to invest like a hedge fund or portfolio manager from a couple of decades ago.”

To watch the full interview with Bipan Rai, click the video above this article.