WisdomTree has announced that it has entered into an agreement to acquire Toronto-based asset manager Questrade Wealth Management. As part of the deal, WisdomTree Canada will acquire the right to manage Questrade’s eight ETFs which have approximately CAD $89 million in assets under management.
As part o the acquisition, WisdomTree Canada will obtain the right to manage Questrade’s eight ETFs which have approximately CAD $89 million in AUM.
Questrade’s suite of ETFs that will be managed under WisdomTree following the completion of the deal are all listed on Toronto Stock Exchange. They include two currency-hedged US mid-cap ETFs tilted to either growth or value characteristics. Four of the ETFs offer equal-weighted US large-cap exposure targeting the technology, industrials, healthcare and consumer discretionary sectors, and hedging currency risk between the US dollar and Canadian dollar. The final two ETFs offer actively managed exposure to global fixed income securities and global equities.
The full suite is listed below:
Questrade Russell US Midcap Growth Index ETF Hedged to CAD (QMG)
Questrade Russell US Midcap Value Index ETF Hedged to CAD (QMV)
Questrade Russell 1000 Equal Weight US Technology Index ETF Hedged to CAD (QRT)
Questrade Russell 1000 Equal Weight US Industrials Index ETF Hedged to CAD (QRI)
Questrade Russell 1000 Equal Weight US Health Care Index ETF Hedged to CAD (QRH)
Questrade Russell 1000 Equal Weight US Consumer Discretionary Index ETF Hedged to CAD (QRD)
Questrade Fixed Income Core Plus ETF (QCP)
Questrade Global Total Equity ETF (QGE)
Further details of the deal include WisdomTree acquiring Questrade’s online brokerage subsidiary. Under this arrangement, WisdomTree Canada will provide all of its ETFs on a commission-free basis on Questrade’s self-directed platform. WisdomTree will also become a consultant for Questrade’s Portfolio IQ, an actively managed low-cost online investment service. In addition, both companies will work together to develop ETF-focused educational initiatives for Questrade clients.
“We’re excited to be joining forces with Canada’s leader in the online investing space and to be able to offer our suite of Canadian ETFs to Questrade clients,” said Kurt MacAlpine, head of global distribution, WisdomTree. “Last year, we launched our first set of equity ETFs in Canada, and just recently, our first set of smart beta fixed income ETFs, which have been very well received.
“This strategic agreement with Questrade, combined with our talented team and differentiated product set, is an important part of WisdomTree’s deepening commitment and long-term opportunity in the Canadian ETF market.”
“Questrade is committed to delivering the highest quality investment options to Canadian investors,” added Edward Kholodenko, president and CEO at Questrade. “We believe these strategic agreements with WisdomTree will continue to provide investors with access to cost-effective and innovative ETFs, as well as critical investor education.”
The acquisition is subject to regulatory and unitholder approvals, and WisdomTree expects that for most of the funds, the Questrade ETFs will merge into existing ETFs managed by WisdomTree Canada, while WisdomTree Canada is expected to become the trustee and manager for one of the existing Questrade ETFs.