We’ve had a wonderful start to the year, with much to celebrate. Last year may have been challenging for many, making our achievements in 2021 even more significant.

The ETF industry hit historic record highs in 2021 with inflows over $1 trillion and total global assets under management (AUM) close to $10 trillion despite the challenges of the current pandemic-stricken market.

According to National Bank’s ETF Research and Strategy report, last year’s Canadian ETF inflows increased 27% year-over-year amounting to $53 billion in total Canadian ETF inflows and $323 billion in total Canadian ETF AUM by year-end. There was a lot of progress in the Canadian ETF industry in 2021. The number of ETFs has grown at a cumulative rate of 22% over the past ten years. There were 202 new ETFs launched in 2021 with the total number of Canadian ETFs reaching 1,117 by the end of December. A new ETF category also made its debut in February, Crypto-Asset ETFs, which grew from zero to $5.9 billion in assets across more than 30 different products.

Cryptocurrencies were just one of the more dominant themes that have propelled the growth and popularity of thematic investing in 2021. Thematic investing tends to highlight inflection points, where several converging themes come together to make the overall adoption of technology-related themes easier as the pandemic continues to accelerate the need for technological advancement. Fortunately, we have found ourselves on the winning end.

Company Milestones

In September 2021, we celebrated four-year track records for some of our first ETFs – Evolve Cyber Security Index Fund (CYBR ETF) and Evolve Automobile Innovation Index Fund (CARS ETF). Both of these funds, CYBR ETF and CARS ETF, were two of the top five performing ETFs in Canada for the period.

In October 2021, we exceeded $2 billion in AUM, reinforcing our claim as one of the fastest-growing ETF providers in Canada in just over four years. Being a leader in disruptive innovation ETFs, we more than tripled our assets in 18 months despite the tumultuous environment this pandemic has created for us.

Source: Evolve ETFs, “Two Award-Winning Funds: EDGE ETF & FIXD ETF”, January 27, 2022

Award-Winning ETFs: EDGE ETF & FIXD ETF

A number of our disruptive innovation ETFs have remained top performers in 1 Year, 2 Year, 3 Year, 4 Year, and Since Inception periods. Notably, the Evolve Innovation Index Fund (EDGE ETF) received the Refinitiv Lipper Fund Award Canada 2021 for top global equity ETF over three years, marking the first Lipper win for Evolve. EDGE ETF, ranked first out of 26 ETFs eligible for consideration for Refinitiv Lipper Fund Awards Canada 2021.1

EDGE ETF was also recognized for outstanding fund performance at the 2021 Fundata FundGradeA + ® Awards in the Global Equity category of 1,127 funds.2

Our fixed income ETF, Evolve Active Core Fixed Income Fund (FIXD ETF), an actively managed fund by Addenda Capital, was recognized for outstanding fund performance at the 2021 Fundata FundGradeA + ® Awards in the Canadian Fixed Income category of 309 funds.3

“The Evolve Innovation Index Fund has become one of our flagship funds by providing investors with diversified exposure to eight investment themes that are shaping our world over the next 10-20 years,” says Raj Lala, President and CEO at Evolve ETFs. “In addition, Evolve is very proud of our partnership with Addenda Capital, sub-advisor to our actively-managed Canadian Fixed Income Fund – FIXD. The FundGradeA+ award is a testament to Addenda’s portfolio management capabilities in this challenging fixed income market.”

More First-in-Canada ETFs: Cryptocurrencies, Metaverse and More

As we continue our efforts in bringing long-term investment themes and many “firsts” to Canadian investors, we launched eight new funds in 2021, namely:

  • Canada’s first Cloud Computing ETF, Evolve Cloud Computing Index Fund (DATA ETF)
  • Canada’s first Metaverse ETF, Evolve Metaverse ETF (MESH ETF)
  • Canada’s first FANGMA ETF, Evolve FANGMA Index ETF (TECH ETF)
  • One of Canada’s first bitcoin ETFs, Bitcoin ETF (EBIT ETF)
  • Canada’s first multi-cryptocurrency ETF, Evolve Cryptocurrencies ETF (ETC ETF)
  • World’s first ether ETF, Ether ETF (ETHR ETF)
  • World’s first carbon-neutral ETFs tied to traditional indices, our CleanBeta™ fund series:
    • Evolve S&P/TSX 60 CleanBeta™ Fund (SIXT ETF)
    • Evolve S&P 500 CleanBeta™ Fund (FIVE ETF)

Commemorating the past year’s achievements wouldn’t have been complete without celebrating with our hardworking and dedicated team. For the first time since the lockdown in March 2019, we celebrated the holidays together in person and in full team spirit, just before restrictions tightened towards the second half of December 2021.

Though the first month of 2022 may not have been easy for some, and we may face even more challenges ahead, we stand strong together and thank you for being part of our journey.

 

Evolve ETFs Team 2021
Source: Evolve ETFs, Team Photo, December 2021

Investing in Award-Winning Funds

To learn more about Evolve Innovation Index Fund and Evolve Active Core Fixed Income Fund, read the article: “Two Award-Winning Funds: EDGE ETF & FIXD ETF”.

For more information on Evolve ETFs or any of our products, please visit our website at https://evolveetfs.com/.

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Disclaimers
1Best Global Equity Fund Over Three Years, Evolve Innovation Index Fund, Refinitiv Lipper Fund Awards Canada 2021. Evolve Innovation Index Fund ranked first out of 26 ETFs eligible for consideration for Refinitiv Lipper Fund Awards Canada 2021. The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. Evolve Innovation Index Fund was recognized for outstanding fund performance at the 2021 Fundata FundGrade A+ Awards in the Global Equity category of 1,127 funds.
2Evolve Innovation Index Fund – Hedged ETF Units, Class A Mutual Fund, and Class F Mutual Fund – was recognized for outstanding fund performance at the 2021 Fundata FundGrade A+ Awards in the Global Equity category out of 1,127 funds.
3Evolve Active Core Fixed Income Fund – Unhedged ETF Units was recognized for outstanding fund performance at the 2021 Fundata FundGrade A+ Awards in the Canadian Fixed Income category out of 309 funds.
Commissions, management fees and expenses all may be associated with exchange traded funds (ETFs) and mutual funds. ETFs and mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus for a complete description of risks relevant to ETFs and mutual funds. Investors may incur customary brokerage commissions in buying or selling ETF and mutual fund units. Please read the prospectus before investing.
The indicated rates of return are the historical annual compound total returns net of fees (except for figures of one year or less, which are simple total returns) including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the ETF and mutual fund or returns on investment in the ETF and mutual fund. ETFs and mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
The FundGrade A+® rating is used with permission from Fundata Canada Inc., all rights reserved. Fundata is a leading provider of market and investment funds data to the Canadian financial services industry and business media. The Fund-Grade A+® rating identifies funds that have consistently demonstrated the best risk-adjusted returns throughout an entire calendar year. For more information on the rating system, please visit www.Fundata.com/ProductsServices/FundGrade.aspx.
FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.
The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper.
Refinitiv Lipper Fund Awards, ©2021 Refinitiv. All rights reserved. Used under license.

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