ETFGI Canada ETF and ETP industry insights July 2012

ETFGI Canada ETF and ETP industry insights July 2012 This short summary of key findings has been prepared for reference by the media. Our full report will be available in Q4 on a paid subscription basis. For further information on subscribing contact deborah.fuhr@etfgi.com FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 1

Canada ETF and ETP asset growth as at end of July 2012 At the end of July 2012, the Canadian ETF industry had 253 ETFs, with 335 listings, assets of US$50 Bn, from 7 providers on 1 exchange. Including other Exchange Traded Products (ETPs), at the end of July 2012, the Canadian ETF/ETP industry had 256 ETFs/ETPs, with 362 listings, assets of US$50 Bn, from 9 providers on 1 exchange. (US$ Bn) 60 50 10 year ETF/ETP CAGR: 28.8% YTD 2012: 18.4% ETF assets ETP assets # ETFs # ETPs # ETFs/ETPs 300 250 40 200 30 150 20 100 10 50 0 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 # ETFs 3 15 15 16 16 22 28 46 77 109 157 227 253 # ETFs/ETPs 3 15 15 16 16 22 28 46 77 109 157 227 256 ETF assets $4 $3 $3 $6 $7 $11 $13 $18 $16 $31 $38 $42 $50 ETF/ETP assets $4 $3 $3 $6 $7 $11 $13 $18 $16 $31 $38 $42 $50 Note: ETFs are typically open-end index funds that provide daily portfolio transparency, are listed and traded on exchanges like stocks on a secondary basis as well as utilising a unique creation and redemption process for primary transactions. ETPs refers to other products that have similarities to ETFs in the way they trade and settle but they do not use a mutual fund structure. The use of other structures including grantor trusts, partnerships, notes and depositary receipts by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 2 0

Summary for Canada listed ETFs At the end of July 2012, the Canadian ETF industry had 253 ETFs, with 335 listings, assets of US$50 Bn, from 7 providers on 1 exchange. ETF assets have increased by 3.0% from US$49 Bn in June 2012 to US$50 Bn in July 2012. YTD through end of July 2012, ETF assets have increased by 18.4% from US$42 Bn to US$50 Bn. Flows In July 2012, ETFs saw net inflows of US$379 Mn. YTD through end of July 2012, ETFs saw net inflows of US$7,555 Mn. BMO Asset Management gathered the largest net ETF inflows in July with US$423 Mn, followed by PowerShares with US$65 Mn and Horizons ETFs with US$38 Mn net inflows. ishares gathered the largest net ETF inflows YTD with US$3,288 Mn, followed by BMO Asset Management with US$2,832 Mn and Horizons ETFs with US$596 Mn net inflows. ishares experienced the largest net ETF outflows in July with US$198 Mn. Products In July 2012, 8 new ETFs were launched by 2 providers on 1 exchange. YTD through end of July 2012, 32 new ETFs have been launched by 4 providers on 1 exchange, while 6 ETFs have delisted. Trading volumes ETF average daily trading volumes decreased by 10.3% from US$715 Mn in June 2012 to US$641 Mn in July 2012. available. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 3

Summary for Canada listed ETFs/ETPs Including other Exchange Traded Products (ETPs), at the end of July 2012, the Canadian ETF/ETP industry had 256 ETFs/ETPs, with 362 listings, assets of US$50 Bn, from 9 providers on 1 exchange. ETF/ETP assets have increased by 3.0% from US$49 Bn in June 2012 to US$50 Bn in July 2012. YTD through end of July 2012, ETF/ETP assets have increased by 18.4% from US$42 Bn to US$50 Bn. Flows In July 2012, ETFs/ETPs saw net inflows of US$379 Mn. YTD through end of July 2012, ETFs/ETPs saw net inflows of US$7,557 Mn. BMO Asset Management gathered the largest net ETF/ETP inflows in July with US$423 Mn, followed by PowerShares with US$65 Mn and Horizons ETFs with US$38 Mn net inflows. ishares gathered the largest net ETF/ETP inflows YTD with US$3,288 Mn, followed by BMO Asset Management with US$2,832 Mn and Horizons ETFs with US$596 Mn net inflows. ishares experienced the largest net ETF/ETP outflows in July with US$198 Mn. Products In July 2012, 8 new ETFs/ETPs were launched by 2 providers on 1 exchange. YTD through end of July 2012, 35 new ETFs/ETPs have been launched by 5 providers on 1 exchange, while 6 ETFs/ETPs have delisted. Trading volumes ETF/ETP average daily trading volumes decreased by 10.7% from US$720 Mn in June 2012 to US$643 Mn in July 2012. available. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 4

Canada listed ETFs/ETPs by asset class July 2012 ETF/ETP net new assets by type of exposure YTD ETF/ETP net new assets by type of exposure In July 2012, ETFs/ETPs saw net inflows of US$379 Mn. Fixed income Leveraged Inverse Asset class Active Mixed Currency Alternative Commodities Inverse Leveraged Equity -157-85 0-16 -18 0 0 # ETFs/ ETPs 22 89 Total: 379-300 -100 100 300 500 700 Total: 7,557 545 % share Fixed income Equity Active Leveraged Commodities YTD-11 2011 Equity 95 29,255 58.4% 306 (157) 3,059 907 3,775 Fixed income 54 15,425 30.8% 74 545 3,784 1,348 3,161 Commodities 25 2,347 4.7% 20 (16) 195 106 294 Active 30 1,433 2.9% 4 22 350 327 713 Alternative 3 8 0.0% 2 (0) 9 (0) (10) Currency 2 10 0.0% 0 0 1 11 9 Mixed 7 117 0.2% 0 0 33 19 24 Leveraged 15 976 1.9% 150 (85) 206 (601) (122) Inverse 8 106 0.2% 5 (18) (10) 7 20 Leveraged Inverse 17 389 0.8% 81 89 (70) (116) (291) Total 256 50,066 100.0% 643 379 7,557 2,007 7,574 Mixed Alternative Currency Inverse Leveraged Inverse -10-70 33 9 1 350 206 195 3,059 3,784-2,000 0 2,000 4,000 6,000 Fixed income ETFs/ETPs gathered the largest net inflows with US$545 Mn, followed by leveraged inverse ETFs/ETPs with US$89 Mn and active ETFs/ETPs with US$22 Mn, while equity ETFs/ETPs experienced the largest net outflows with US$157 Mn. YTD through end of July 2012, ETFs/ETPs saw net inflows of US$7,557 Mn. Fixed income ETFs/ETPs gathered the largest net inflows with US$3,784 Mn, followed by equity ETFs/ETPs with US$3,059 Mn, while leveraged inverse ETFs/ETPs experienced the largest net outflows with US$70 Mn. available. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 5

Canada listed ETFs/ETPs by asset class: Equity July 2012 ETF/ETP by region of equity exposure YTD ETF/ETP by region of equity exposure In July 2012, equity ETFs/ETPs saw net outflows of US$157 Mn. Global Global (ex-us) Emerging Asia Pacific North America Equity exposure -193 Total: (157) -300-200 -100 0 100 Total: 3,059 # ETFs/ ETPs -1 17 11 10 % share North America Global Emerging Global (ex-us) Asia Pacific YTD-11 2011 Asia Pacific 1 11 0.0% 0 (1) (1) 8 5 Emerging 13 728 2.5% 2 10 64 62 50 North America 67 26,961 92.2% 293 (193) 2,862 734 3,645 Global (ex-us) 4 1,005 3.4% 9 11 5 24 (12) Global 10 550 1.9% 2 17 128 79 88 Total 95 29,255 100.0% 306 (157) 3,059 907 3,775-1 64 5 128 2,862-1,000 0 1,000 2,000 3,000 4,000 ETFs/ETPs providing exposure to global equity indices gathered the largest net inflows with US$17 Mn, while ETFs/ETPs providing exposure to North American equity indices experienced the largest net outflows with US$193 Mn. YTD through end of July 2012, equity ETFs/ETPs saw net inflows of US$3,059 Mn. North American equity ETFs/ETPs have gathered the largest net inflows with US$2,862 Mn, followed by ETFs/ETPs providing exposure to global equity indices with US$128 Mn and emerging market equity ETFs/ETPs with US$64 Mn. available. The data displayed above does not include active, leveraged, inverse or leveraged inverse products. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 6

Canada listed ETFs/ETPs by asset class: Fixed Income July 2012 ETF/ETP by type of fixed income exposure YTD ETF/ETP by type of fixed income exposure In July 2012, fixed income ETFs/ETPs saw net inflows of US$545 Mn. Corporate High Yield Broad/Aggregate Emerging Govt/Corp 44 15 5 165 337 Corporate Government High Yield Broad/Aggre Emerging 87 448 841 836 1,475 Corporate bond ETFs/ETPs gathered the largest net inflows with US$337 Mn, followed by high yield ETFs/ETPs with US$165 Mn, and broad/aggregate bond ETFs/ETPs with US$44 Mn net inflows. Convertible Money Market Government -25 4 0 Govt/Corp Convertible Money Market 64 30 4 YTD through end of July 2012, fixed income ETFs/ETPs saw net inflows of US$3,784 Mn. Total: 545-75 25 125 225 325 425 Total: 3,784 Fixed income exposure # ETFs/ ETPs % share 0 500 1,000 1,500 2,000 YTD-11 2011 Broad/Aggregate 3 779 5.0% 2 44 448 50 280 Convertible 2 51 0.3% 0 4 30 16 21 Corporate 22 4,700 30.5% 24 337 1,475 402 874 Emerging 2 142 0.9% 1 15 87 19 37 Government 15 7,573 49.1% 32 (25) 841 407 1,237 Govt/Corp 3 192 1.2% 1 5 64 19 41 High Yield 6 1,928 12.5% 13 165 836 430 651 Money Market 1 61 0.4% 0-4 5 20 Total 54 15,425 100.0% 74 545 3,784 1,348 3,161 Corporate bond ETFs/ETPs have gathered the largest net inflows YTD with US$1,475 Mn, followed by government bond ETFs/ETPs with US$841 Mn and high yield ETFs/ETPs with US$836 Mn. available. The data displayed above does not include active, leveraged, inverse or leveraged inverse products. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 7

Canada listed ETFs/ETPs by asset class: Commodities July 2012 ETF/ETP by type of commodity exposure YTD ETF/ETP by type of commodity exposure In July 2012, commodity ETFs/ETPs saw net outflows of US$16 Mn. Industrial metals Energy Precious metals -5 2 4 Precious metals Energy Industrial metals 19 13 220 Industrial metals ETFs/ETPs gathered the largest net inflows with US$4 Mn, while broad commodity ETFs/ETPs experienced the largest net outflows with US$9 Mn. Agriculture Commodity exposure Broad -9-7 Total: (16) -15-10 -5 0 5 Total: 195 # ETFs/ ETPs % share YTD-11 2011 Broad 2 66 2.8% 1 (9) (18) 28 18 Agriculture 2 241 10.3% 1 (7) (38) 52 38 Energy 9 124 5.3% 1 2 19 (2) (16) Industrial metals 4 57 2.4% 0 4 13 21 26 Precious metals 8 1,860 79.2% 18 (5) 220 6 227 Total 25 2,347 100.0% 20 (16) 195 106 294 Broad Agriculture -38-18 -100-50 0 50 100 150 200 250 YTD through end of July 2012, commodity ETFs/ETPs saw net inflows of US$195 Mn. Precious metals ETFs/ETPs gathered the largest net inflows with US$220 Mn, followed by energy ETFs/ETPs with US$19 Mn, while agriculture ETFs/ETPs experienced the largest net outflows with US$38 Mn. available. The data displayed above does not include active, leveraged, inverse or leveraged inverse products. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 8

Top ETF providers by assets: Canada ishares is the largest ETF provider in terms of assets with US$39 Bn, reflecting 77.2% market share; BMO Asset Management is second with US$7 Bn and 13.3% market share, followed by Horizons ETFs with US$3 Bn and 6.7% market share. Provider # ETFs # listings % share YTD-11 2011 ishares 87 124 38,654 77.2% 343 (198) 3,288 546 4,044 BMO AM 44 44 6,674 13.3% 37 423 2,832 1,482 2,581 Horizons ETFs 81 112 3,358 6.7% 246 38 596 (383) 413 PowerShares 13 13 879 1.8% 13 65 502 301 363 Vanguard 6 6 271 0.5% 1 22 215-58 RBC Global AM 8 8 135 0.3% 0 20 77-58 First Asset ETFs 14 28 90 0.2% 0 9 45 61 58 Total 253 335 50,061 100.0% 641 379 7,555 2,007 7,574 available. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 9

Top 20 ETF index providers by assets: Canada S&P Dow Jones has the largest amount of ETF assets tracking its benchmarks with US$26 Bn, reflecting 52.6% market share; PC-Bond is second with US$13 Bn and 26.5% market share, followed by MSCI with US$1 Bn and 2.8% market share. Provider # ETFs # listings % share YTD-11 2011 S&P Dow Jones 84 97 26,308 52.6% 391 (278) 2,388 (11) 2,779 PC-Bond 36 45 13,270 26.5% 60 369 2,880 884 2,409 MSCI 15 15 1,402 2.8% 11 48 173 62 72 FTSE 7 13 725 1.4% 3 36 201 97 88 Barclays Capital 4 5 632 1.3% 3 31 260 101 218 Markit 2 2 631 1.3% 3 10 253 87 129 Manulife 2 4 249 0.5% 1 (14) (47) 47 29 BNY Mellon 3 4 237 0.5% 0 (2) (12) (16) (37) Zacks 1 2 140 0.3% 0 0 11 22 32 NASDAQ OMX 5 5 138 0.3% 3 3 20 25 32 RAFI 1 1 114 0.2% 4 88 93 21 22 Indxis 2 2 99 0.2% 0 5 37 55 66 Sabrient Systems 2 4 86 0.2% 0 1 13 8 13 Russell 1 1 84 0.2% 3 (0) 5 24 15 Morningstar 6 12 78 0.2% 0 1 78 - - Auspice Capital 2 4 41 0.1% 1 (7) (4) 29 24 Sustainable WM 1 2 37 0.1% 0 (1) (1) 7 9 Cohen & Steers 1 2 31 0.1% 0 5 13 4 (13) JP Morgan 1 1 20 0.0% 0 2 11 5 8 Sustainalytics 1 1 18 0.0% 0 - (2) 2 2 Others (4) 76 113 5,719 11.4% 157 82 1,185 555 1,675 Total 253 335 50,061 100.0% 641 379 7,555 2,007 7,574 Market share of largest ETF index providers by assets Top 20, 88.6% Top 10, 87.4% Top 5, 84.6% Top 3, 81.9% 0% 20% 40% 60% 80% 100% Category % total Top 3 40,980 81.9% Top 5 42,337 84.6% Top 10 43,733 87.4% Top 20 44,342 88.6% available. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 10

Top ETF/ETP providers by assets: Canada ishares is the largest ETF/ETP provider in terms of assets with US$39 Bn, reflecting 77.2% market share; BMO Asset Management is second with US$7 Bn and 13.3% market share, followed by Horizons ETFs with US$3 Bn and 6.7% market share. Provider # ETFs/ ETPs # listings % share YTD-11 2011 ishares 87 125 38,654 77.2% 343 (198) 3,288 546 4,044 BMO AM 44 44 6,674 13.3% 37 423 2,832 1,482 2,581 Horizons ETFs 81 112 3,358 6.7% 246 38 596 (383) 413 PowerShares 13 13 879 1.8% 13 65 502 301 363 Vanguard 6 6 271 0.5% 1 22 215-58 RBC Global AM 8 8 135 0.3% 0 20 77-58 First Asset ETFs 14 28 90 0.2% 0 9 45 61 58 Barclays (ipath) 3 21 6 0.0% 2-2 - - Deutsche Bank - 5 - - 0 - - - - Total 256 362 50,066 100.0% 643 379 7,557 2,007 7,574 available. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 11

Top 20 ETF/ETP index providers by assets: Canada S&P Dow Jones has the largest amount of ETF/ETP assets tracking its benchmarks with US$26 Bn, reflecting 52.6% market share; PC-Bond is second with US$13 Bn and 26.5% market share, followed by MSCI with US$1 Bn and 2.8% market share. Provider # ETFs/ ETPs # listings % share YTD-11 2011 S&P Dow Jones 86 105 26,312 52.6% 393 (278) 2,390 (11) 2,779 PC-Bond 36 45 13,270 26.5% 60 369 2,880 884 2,409 MSCI 15 15 1,402 2.8% 11 48 173 62 72 FTSE 7 13 725 1.4% 3 36 201 97 88 Barclays Capital 5 12 634 1.3% 3 31 260 101 218 Markit 2 2 631 1.3% 3 10 253 87 129 Manulife 2 4 249 0.5% 1 (14) (47) 47 29 BNY Mellon 3 4 237 0.5% 0 (2) (12) (16) (37) Zacks 1 2 140 0.3% 0 0 11 22 32 NASDAQ OMX 5 5 138 0.3% 3 3 20 25 32 RAFI 1 1 114 0.2% 4 88 93 21 22 Indxis 2 2 99 0.2% 0 5 37 55 66 Sabrient Systems 2 4 86 0.2% 0 1 13 8 13 Russell 1 1 84 0.2% 3 (0) 5 24 15 Morningstar 6 12 78 0.2% 0 1 78 - - Auspice Capital 2 4 41 0.1% 1 (7) (4) 29 24 Sustainable WM 1 2 37 0.1% 0 (1) (1) 7 9 Cohen & Steers 1 2 31 0.1% 0 5 13 4 (13) JP Morgan 1 1 20 0.0% 0 2 11 5 8 Sustainalytics 1 1 18 0.0% 0 - (2) 2 2 Others (5) 76 125 5,719 11.4% 157 82 1,185 555 1,675 Total 256 362 50,066 100.0% 643 379 7,557 2,007 7,574 Market share of largest ETF index providers by assets Top 20, 88.6% Top 10, 87.4% Top 5, 84.6% Top 3, 81.9% 0% 20% 40% 60% 80% 100% Category % total Top 3 40,984 81.9% Top 5 42,343 84.6% Top 10 43,739 87.4% Top 20 44,347 88.6% available. FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 12

About ETFGI ETFGI is an independent research and consultancy firm aimed at providing services to the rapidly expanding global Exchange-Traded Fund (ETF) industry and investors. The new firm is focused on providing thought leadership; publishing independent research on the industry, products, applications, competitor analysis; providing education, assistance and tools for investors on product comparison, asset allocation implementation and offering customised research. The founding partners of the firm bring a wealth of ETF implementation and capital markets experience to the venture. Deborah Fuhr, Shane Kelly and Matthew Murray were instrumental in the development of the first ETF global industry research reports and worldwide handbooks while they were at Morgan Stanley and most recently they have been responsible for the development and production of ETF reports and handbooks at BlackRock/Barclays Global Investors. For further information please contact: Deborah Fuhr Partner ETFGI LLP 100 Pall Mall, St James London SW1Y 5NQ United Kingdom Phone: +44 207 321 5650 Mobile: +44 777 5823 111 Email: deborah.fuhr@etfgi.com FOR PROFESSIONAL INVESTORS ONLY - PLEASE SEE IMPORTANT DISCLAIMER AT BACK OF PUBLICATION. 13

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