The survey finds Canadian investors are open to greater risk-reward investment opportunities amid a shifting financial landscape
TORONTO, January 21, 2025 – With rising economic uncertainty, new research (the “Survey”) by BetaPro by Global X, managed by Global X Investments Canada Inc. (“Global X”), conducted through the Angus Reid Forum, shows Canadian investors are willing to take on more risk for the potential opportunity of higher returns.
The Survey coincides with the launch of www.BetaPro.ca, an online resource centre designed to help investors understand how short term, tactical trading vehicles may help investors navigate market uncertainty.
BetaPro by Global X is Canada’s largest and longest-running suite of leveraged, inverse, and inverse leveraged ETFs. The ETF family includes funds that offer up to 2 times the exposure to popular indices, asset classes and commodities.
According to the Survey, there is a growing number of Canadian investors seeking non-traditional investment strategies to meet their investment goals. In fact, 27% of respondents have thought about taking on more risk today to meet their financial goals. That number jumps to 41% for younger investors between the ages of 18 and 35, many of whom are faced with bigger financial obstacles compared to previous generations, with just 12% of respondents over 56 years old considering investing in riskier assets.
With nearly half of Survey respondents (45%) believing the economy is in decline and 35% expressing less confidence in meeting their financial goals compared to a year ago.
The perception of market volatility is influenced by domestic and international geo-political events, with more than one in three respondents (35%) viewing the potential of a Federal Election as an opportunity for increased returns, while only 19% saw it as leading to less opportunity. In contrast, Canadian respondents are split on how the results of the President-elect Trump’s return to office will affect their investments with 34% saying they see more opportunity for returns, while 33% say they see less opportunity.
The Survey also points to online investing options such as ‘Do-It-Yourself’ investors, who are even more inclined to expand their risk tolerance, with 46% and 53% respectively saying they are open to exploring investments with greater risk-reward ratios compared to traditional strategies, including cryptocurrencies, options, and ETFs that use leverage.
“Whether an investor is looking to hedge their portfolio or take advantage of market pullbacks, we’re seeing much more openness to taking on alternative investment strategies which may help overcome barriers compared to traditional strategies,” said Chris McHaney, EVP, Head of Investment Management and Strategy at Global X.
Key motivators for taking on risk among the respondents include achieving financial goals faster (30%) and acting on recommendations from trusted sources (28%). This approach underscores the importance of education and strategy in navigating complex markets.
As some Canadian investors increasingly embrace a more nuanced view of risk, particularly younger traders seeking opportunities amid economic uncertainty, BetaPro by Global X’s leveraged, inverse, and inverse-leveraged ETFs provide an alternative option for Canadian investors willing to take on more risk in the short-term to gain investment opportunity that traditional investing avenues don’t provide.
Unlike most ETFs, which aim to replicate the performance of the underlying commodities or securities they track, the BetaPro leveraged ETFs deliver twice, or up to twice, the performance (2x or up to 2x) or twice, or up to twice, the inverse performance (-2x or up to -2x) of the underlying investments they attempt to replicate—but only for a single day. Any more than a day and the compounding effects of these leveraged products could cause the returns of the ETF to drift far from the underlying performance of the index or commodity the security tracks.
BetaPro ETFs are intended as daily trading vehicles for sophisticated investors and should not be used as buy-and-hold investments. These ETFs offer the opportunity to potentially capitalize on both market downturns and upswings to execute tactical investment strategies such as short selling without the complexities or risks of traditional margin accounts.
“BetaPro ETFs are designed for sophisticated traders who see volatility as an opportunity, not a threat,” says McHaney. “Our goal is to equip Canadian investors with the tools and education to strategically manage risk and pursue short-term growth, whether the market is climbing or falling.”
For additional insights from the survey, please visit www.BetaPro.ca
For media and investor inquiries:
Contact Global X at 1-866-641-5739 (toll-free) or (416) 933-5745
[email protected]
Methodology
These findings are from a survey conducted by BetaPro by Global X Investments Canada from December 16th to 19th, 2024, among a sample of 1,013 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-3.1 percentage points, 19 times out of 20.
About BetaPro by Global X (www.BetaPro.ca)
BetaPro by Global X is Canada’s leading provider of leveraged, inverse, and inverse-leveraged exchange-traded funds, with more than 25 ETFs listed on major Canadian stock exchanges. BetaPro by Global X is a wholly owned subsidiary of the Mirae Asset Financial Group, which manages more than $800 billion of assets across 19 countries and global markets around the world.
About Global X Investments Canada Inc. (www.GlobalX.ca)
Global X Investments Canada Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Global X Fund family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Global X has more than $38 billion of assets under management and 134 ETFs listed on major Canadian stock exchanges. Global X is a wholly owned subsidiary of the Mirae Asset Financial Group, which manages more than $800 billion of assets across 19 countries and global markets around the world.
Commissions, management fees and expenses all may be associated with an investment in products (the “Global X Funds”) managed by Global X Investments Canada Inc. The Global X Funds are not guaranteed, their value changes frequently and past performance may not be repeated. Certain Global Funds may have exposure to leveraged investment techniques that magnify gains and losses which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The prospectus contains important detailed information about the ETF. Please read the relevant prospectus before investing.
The Global X Funds include our BetaPro products (the “BetaPro Products”). The BetaPro Products are alternative mutual funds within the meaning of National Instrument 81-102 Investment Funds and are permitted to use strategies generally prohibited by conventional mutual funds: the ability to invest more than 10% of their net asset value in securities of a single issuer, to employ leverage, and engage in short selling to a greater extent than is permitted in conventional mutual funds. While these strategies will only be used in accordance with the investment objectives and strategies of the BetaPro Products, during certain market conditions they may accelerate the risk that an investment in shares of a BetaPro Product decreases in value.
The BetaPro Products consist of our Daily Bull and Daily Bear ETFs (“Leveraged and Inverse Leveraged ETFs”), Inverse ETFs (“Inverse ETFs”), and our BetaPro S&P 500 VIX Short-Term Futures™ ETF (the “VIX ETF”). The Leveraged and Inverse Leveraged ETFs and certain other BetaPro Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These BetaPro Products are subject to leverage risk and may be subject to aggressive investment risk and price volatility risk, among other risks, which are described in their respective prospectuses. Each Leveraged and Inverse Leveraged ETF seeks a return, before fees and expenses, that is either up to or equal to, either 200% or –200% of the performance of a specified underlying index, commodity futures index, or benchmark (the “Target”) for a single day. Each Inverse ETF seeks a return that is –100% of the performance of its Target. Due to the compounding of daily returns a Leveraged and Inverse Leveraged ETF or Inverse ETF’s returns over periods other than one day will likely differ in amount and, particularly in the case of the Leveraged and Inverse Leveraged ETFs, possibly direction from the performance of their respective Target(s) for the same period. For certain Leveraged and Inverse Leveraged ETFs that seek up to 200% or up to or -200% leveraged exposure, the Manager anticipates, under normal market conditions, managing the leverage ratio as close to two times (200%) as practicable however, the Manager may, at its sole discretion, change the leverage ratio based on its assessment of the current market conditions and negotiations with the respective ETF’s counterparties at that time. Hedging costs charged to BetaPro Products reduce the value of the forward price payable to that ETF.
The VIX ETF, which is a 1x ETF, as described in the prospectus, is a speculative investment tool that is not a conventional investment. The VIX ETF’s Target is highly volatile. As a result, the VIX ETF is not intended as a stand-alone long-term investment. Historically, the VIX ETF’s Target has tended to revert to a historical mean. As a result, the performance of the VIX ETF’s Target is expected to be negative over the longer term and neither the VIX ETF nor its target is expected to have positive long-term performance. BetaPro Inverse Bitcoin ETF (“BITI”) which is an up to -1X ETF as described in the prospectus, is a speculative investment tool that is not a conventional investment. Its Target, an index which replicates exposure to rolling Bitcoin Futures and not the spot price of Bitcoin, is highly volatile. As a result, the ETF is intended as a stand-alone investment. There are inherent risks associated with products linked to crypto-assets, including Bitcoin Futures. While Bitcoin Futures are traded on a regulated exchange and cleared by regulated central counterparties, direct or indirect exposure to the high level of risk of Bitcoin Futures will not be suitable for all types of investors. An investment in any of the BetaPro Products is not intended as a complete investment program and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. Please read the full risk disclosure in the prospectus before investing. Investors should monitor their holdings in BetaPro Products and their performance at least as frequently as daily to ensure such investment(s) remain consistent with their investment strategies.
Certain statements may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.
This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase exchange traded products managed by Global X Investments Canada Inc. and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.
Global X Investments Canada Inc. (“Global X”) is a wholly owned subsidiary of Mirae Asset Global Investments Co., Ltd. (“Mirae Asset”), the Korea-based asset management entity of Mirae Asset Financial Group. Global X is a corporation existing under the laws of Canada and is the manager and investment manager of the Global X Funds.
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