ETFinsight YOUR SOURCE FOR THE LATEST ETF NEWS & INSIGHTS. Exchange Traded Forum 2017, June 5 Marriott Pinnacle Downtown

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1 1 ETFinsight YOUR SOURCE FOR THE LATEST ETF NEWS & INSIGHTS Exchange Traded Forum 2017, June 5 Marriott Pinnacle Downtown

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3 ETFs in Canada: Global Growth (Backdrop) Growth in Canada By Category Market Share with / without XIU (still the largest ETF in Canada at 10% of AUM) Asset Allocation This is now (May 2017) This was then (May 2011) New ETFs and providers (2017) Industry prospects in terms of AUM growth Trends Accelerated Growth Cheaper Beta; More Alpha targeted solutions; more Active solutions Smart Beta Intelligent Indexing / Factors Investing 3

4 So why haven t we seen anything yet? Unlike the US, where $$$ have flown out of Actively Managed Mutual Funds, here, while ETFs punch above their weight in net Inflows terms, they still represent less than 1/10 of the Mutual Fund Industry (and the MFDA channel is opening up in 2017!) That costs matter will eventually dawn on Canadians Regulators hopefully put an end to practices that have possibly entrenched conflicts of interests (CSA looking for rigorous evidence-based feedback Investment Executive, May 2017). The realization that the odds of Active outperforming are very low will eventually reached returns challenged Canadians New channels capitalizing on the opportunity this presents are developing ONLY 1 bank out of the big 5 (or 6) has a significant stake in the ETF game (BMO) ONLY 1 insurance company has thus far joined the fray (Manulife) A handful of Mutual Funds cos have begun to tackle the task (CI; Mackenzie; AGF; Excel; Franklin Templeton) 4

5 So why haven t we seen anything yet? (continued) Democratization of Access (yes) of Benefits (cost side) perhaps not as broadly Active / Passive discussion (complete non-sense Mark Wiseman ex CPPIB head, now at BlackRock. Reality every decision is ACTIVE Active decision to Index; Active decision to use Factors or Smart/Strategic Beta ; Active decision to use Quants; Active decision to invest Fundamentally; Active decision to pursue high conviction strategy; Active decision to use ALTs; and Private Equity 5

for that matter WSKY or Nashville ETFs but we

6 So why haven t we seen anything yet? (continued) And we don t have these either: Obesity ETF; nor Forensic Accounting ETF (Hello Veritas); nor OLD; nor cloud Computing ETF nor, for that matter WSKY or Nashville ETFs but we do have HMMJ (fastest ETF AUM growth out of the gate EVER)! 6

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9 Canadian ETFs - Asset Growth and Composition through time May ,971,535 4,641,430, ,882, ,972, ,094,256,967 May ,177,962 4,796,674, ,265, ,291, ,388,409,039 May ,286,467 5,498,137, ,659, ,494, ,539,578,208 May ,023,954 8,330,643, ,881, ,025, ,796,574,328 May-06-1,028,184,870 10,290,184, ,893,654 1,141,546, ,074,117 12,868,884,069 May-07-1,707,218,650 13,170,030, ,889,576 1,748,289,841 75,305, ,519,477 17,493,253,290 May-08 27,509,890 2,028,027,720 13,873,260, ,077,462 2,449,812, ,433, ,037, ,406,452 19,779,565,010 May-09 96,144,508 3,932,558,412 14,141,285,071 1,144,444,704 2,820,968, ,800, ,740, ,131,107 23,426,073,742 May-10 78,013,230 7,281,249,584 17,183,696,842 1,668,112,637 3,081,203, ,695,480 2,009,347, ,892,010 32,249,210,124 May-11 62,019,090 9,981,545,595 21,407,785,379 2,394,875,808 3,482,892, ,117,164 1,867,532, ,472,885 40,611,240,948 AUM Growth rates by Asset category cash Bonds + Prefs canadian equities us equities international emerging commodities portfolios aggregate May-12 77,852,457 16,380,937,569 22,022,564,075 2,933,562,342 3,179,558, ,299,905 1,460,758, ,251,354 $47,561,784,385 May ,978,546 23,066,369,078 24,832,002,776 4,934,936,659 3,529,666, ,083,425 1,397,946,855 1,198,201,607 $59,989,185,526 May ,834,765 23,799,153,726 28,064,428,472 8,127,808,348 5,051,687, ,185,729 1,148,549,168 1,187,353,291 $68,529,000,922 May ,443,964 29,809,052,129 28,672,055,065 14,409,647,870 8,403,587,434 1,470,755,939 1,044,916,006 1,375,645,642 $85,559,104,049 May ,909,811 33,927,465,109 32,151,139,608 19,136,181,633 11,166,947,033 1,314,999,333 1,063,863,792 1,278,264,534 $100,565,770,854 May ,009,629 43,780,158,040 38,670,352,147 26,082,877,560 15,185,539,569 2,170,958,450 1,223,021,837 1,735,561,603 $129,634,478,835 X fold incr: growth rate: 58.8% 21.7% 11.9% 54.8% 36.7% 24.7% -3.5% 17.2% 22.2% compounded compounded compounded compounded compounded compounded compounded compounded compounded growth rate growth rate growth rate growth rate growth rate growth rate growth rate growth rate growth rate last 5 years last 5 years last 5 years last 5 years last 5 years last 5 years last 5 years last 5 years last 5 years May 17/May 12 $708,157,172 $27,399,220,471 $16,647,788,072 $23,149,315,219 $12,005,981,227 $1,450,658,544 -$237,736,505 $949,310,249 $82,072,694,450 AUM Growth in % 0.9% 33.4% 20.3% 28.2% 14.6% 1.8% -0.3% 1.2% 100.0% Last 2 years Last 2 years Last 2 years Last 2 years Last 2 years Last 2 years Last 2 years Last 2 years Last 2 years May 17/May ,565,665 $13,971,105,911 $9,998,297,082 $11,673,229,690 $6,781,952,135 $700,202,510 $178,105,831 $359,915,961 $44,075,374,785 AUM Growth in % 0.94% 31.7% 22.7% 26.5% 15.4% 1.6% 0.4% 0.8% 100.0% Last year Last year Last year Last year Last year Last year Last year Last year Last year May 17/May 16 $259,099,818 $9,852,692,931 $6,519,212,539 $6,946,695,927 $4,018,592,536 $855,959,116 $159,158,045 $457,297,069 $29,068,707,981 AUM Growth in % 0.89% 33.89% 22.43% 23.90% 13.82% 2.94% 0.55% 1.57% % 9

10 Canadian ETF industry (May 31, 2017) 10

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12 creations markets AUM change % of flows % of mkts ishares $ 1,233,402,391 -$ 368,085,735 $ 865,316,657 BMO $ 1,263,423,441 -$ 36,766,382 $ 1,226,657,058 Vanguard $ 383,308,425 $ 30,582,265 $ 413,890,690 Tier 1 Tier 1 Horizons $ 228,726,422 -$ 71,347,624 $ 157,378, % 98.7% PowerShares $ 156,083,900 -$ 2,722,039 $ 153,361,862 First Asset $ 82,242,938 -$ 401,812 $ 81,841,126 RBC GAM $ 107,163,838 -$ 3,854,052 $ 103,309,786 Tier 2 Tier 2 Purpose $ 7,486,250 -$ 3,316,760 $ 4,169, % 2.28% First Trust $ 19,090,715 $ 533,925 $ 19,624,639 Auspice $ - -$ 943,600 -$ 943,600 Hamilton Capital $ 6,901,129 -$ 1,220,516 $ 5,680,612 Lysander Funds $ 1,565,775 -$ 1,527,398 $ 38,377 Mackenzie $ 62,334,545 $ 3,572,005 $ 65,906,550 TD AM $ 8,237,125 $ 557,695 $ 8,794,820 Wisdom Tree $ 3,843,975 $ 1,275,150 $ 5,119,125 Questrade $ 12,054,766 $ 153,679 $ 12,208,445 Sphere $ 3,355,760 $ 361,310 $ 3,717,070 Tier 3 Tier 3 Harvest Portfolios $ 11,124,500 $ 134,180 $ 11,258, % -1.0% AGFiq -$ 1,282,393 $ 1,000,010 -$ 282,383 Desjardins $ - -$ 195, $ 195,800 Manulife $ 169,314,135 $ 874, $ 170,188,765 Excel $ 4,318, $ - $ 4,318,275 Franklin Templeton $ - $ - $ - $3,762,695,911 -$451,336,869 $3,311,359,042 net creates: market impact: % increase due to: 113.6% -13.6% 12

13 AUM (May 2017) AUM (May 2016) AUM change market share mkt segments ishares $ 56,520,928,346 $ 50,222,919,598 $ 6,298,008, % BMO $ 40,499,309,628 $ 28,942,410,367 $ 11,556,899, % Vanguard $ 12,018,254,008 $ 7,895,040,325 $ 4,123,213, % Tier I Horizons $ 7,258,475,314 $ 5,417,200,954 $ 1,841,274, % 89.7% PowerShares $ 3,447,314,120 $ 2,756,942,128 $ 690,371, % First Asset $ 3,158,604,592 $ 2,066,361,231 $ 1,092,243, % RBC GAM $ 3,012,603,242 $ 1,827,402,534 $ 1,185,200, % Tier II Purpose $ 1,572,051,546 $ 970,102,774 $ 601,948, % 8.6% First Trust $ 470,554,732 $ 297,311,055 $ 173,243, % Auspice $ 26,236,850 $ 18,180,000 $ 8,056, % Hamilton Capital $ 54,353,250 $ 5,591,533 $ 48,761, % Lysander Funds $ 64,144,010 $ 23,689,500 $ 40,454, % Mackenzie $ 510,823,115 $ 36,330,780 $ 474,492, % TD AM $ 94,738,470 $ 32,180,640 $ 62,557, % Wisdom Tree $ 105,714,350 $ - $ 105,714, % Questrade $ 72,201,305 $ 36,421,433 $ 35,779, % Sphere $ 64,336,300 $ 17,686,000 $ 46,650, % Harvest Portfolios $ 285,914,893 $ - $ 285,914, % Tier III AGFiq $ 122,246,965 $ - $ 122,246, % 1.7% Desjardins $ 65,338,450 $ - $ 65,338, % Manulife $ 206,017,075 $ - $ 206,017, % Excel ETFs $ 4,318,275 $ - $ 4,318, % $ 129,634,478,835 $ 100,565,770,854 $ 29,068,707, % 13

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15 ETFs in 2017/2018 Further Growth Acceleration? /Trends: Beta - accessible at exceedingly low (3-5 bps) costs (incl. Bonds!) Alpha (Smart Beta) Adoption rate higher than pure passive, but of smaller base. Alpha Fees to experience compression Investors More attuned to fees impact and potential conflicts: CRM2. Trailer fees: what will CSA do? Fiduciary duty - Could it land here too? Outcome? Look to New Intermediaries in wealth management ROBOs, ETF Strategists, and Providers as partners. ETF Industry Everyone becoming Everything? Asset Manager; ROBO; Strategist; etc (Distr. Channels MF used by ETFs) 15

16 Proliferation of parts but no assembly instructions.

17 The following slides look at the Smart Beta phenomenon with data updated to May 31,

18 ETFs From Market Cap weighted (totally passive) to Factors based (Smart Beta) to Actively Managed VALUE MOMENTUM + GROWTH RAFI QUALITY SMALL CAP/EW VOL "DRIVEN" YIELD Multi-Factors aggregate factors yoy yoy yoy y/o/y yoy yoy yoy yoy yoy -4.9% -7.8% 8.5% 88.7% 27.7% 15.5% 43.4% 425.5% 34.4% % -24.5% 7.0% 52.2% 39.5% 87.9% 56.2% 260.0% 49.9% yoy $ growth yoy $ growth yoy $ growth yoy $ growth yoy $ growth yoy $ growth yoy $ growth yoy $ growth yoy $ growth -$28,979,220 -$29,809,809 $106,515,037 $391,587,597 $989,464,184 $604,660,932 $3,734,137,884 $742,613,872 $6,510,190, % -0.5% 1.6% 6.0% 15.2% 9.3% 57.4% 11.4% 100.0% Y/O/Y AUM CHANGE 3.31% CIE/CIE.A CIE performance: 23.3% Y/O/Y AUM CHANGE 7.67% CJP/CJP.A CJP performance: 16.3% Y/O/Y AUM CHANGE -5.12% CLU/CLU.A CLU performance: 14.2% Y/O/Y AUM CHANGE 1.79% CLU.C/CLU.B CLU performance: #N/A Y/O/Y AUM CHANGE 6.73% CRQ.A CRQ performance: 13.5% Y/O/Y AUM CHANGE 57.94% CWO/CWO.A CWO performance: 39.5% Y/O/Y AUM CHANGE 34.87% PXC PXC performance: 13.8% Y/O/Y AUM CHANGE 12.74% PXU.F PXU performance: 14.6% LOW SIZE VALUE MOMENTUM QUALITY (INCL.RAFI) YIELD VOL DRIVEN Multi-Factors $4,564,253,195 $565,422,805 $350,024,156 $2,197,470,786 $12,333,795,508 $4,498,029,716 $917,124,405 $25,426,120, % 2.2% 1.4% 8.6% 48.5% 17.7% 3.6% 100.0% 18

19 ETFs From Market Cap weighted (totally passive) to Factors based (Smart Beta) to Actively Managed VALUE MOMENTUM + GROWTH RAFI / Quality SMALL CAP/EW VOL "DRIVEN" YIELD MULTI-FACTORS 31-May-10 $ 61,227,882 $ 51,216,092 $ 461,858,784 $ 387,783,212 $ - $ 972,031,399 VALUE MOMENTUM + GROWTH RAFI / Quality SMALL CAP/EW VOL "DRIVEN" YIELD 31-May-13 $ 65,485,681 $ 53,854,866 $ 1,048,473,587 $ 2,003,862,710 $ 264,945,451 $ 3,353,729,865 VALUE MOMENTUM + GROWTH RAFI / Quality SMALL CAP/EW VOL "DRIVEN" YIELD 31-May-16 $ 594,402,025 $ 379,833,965 $ 1,699,368,152 $ 3,574,789,011 $ 3,893,368,783 $ 8,599,657,625 $ 174,510,534 VALUE MOMENTUM + GROWTH RAFI / Quality SMALL CAP/EW VOL "DRIVEN" YIELD MULTI-FACTORS 31-May-17 $ 565,422,805 $ 350,024,156 $ 2,197,470,786 $ 4,564,253,195 $ 4,498,029,716 $ 12,333,795,508 $ 917,124,405 VALUE MOMENTUM + GROWTH RAFI / Quality SMALL CAP/EW VOL "DRIVEN" YIELD MULTI-FACTORS $9.23 $6.83 $4.76 $11.77 infinity $

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21 ETFs From Market Cap weighted (totally passive) to Factors based (Smart Beta) to Actively Managed 21

22 ETFs From Market Cap weighted (totally passive) to Factors based (Smart Beta) to Actively Managed 22

23 ETFs From Market Cap weighted (passive) to Factors (Smart Beta) to Actively Managed 23

24 ETFs key advantages: Costs Access Taxation Transparency Liquidity Breadth of diversification Increasing ability to go broad or more precise 24

25 ZWB $ 1,408,669,540 BMO Covered Call Canadian Banks ETF BMO ETFs 0.72 XDV $ 1,390,941,888 ishares Canadian Select Dividend Index ETF BlackRock 0.55 ZDY $ 1,222,240,542 BMO US Dividend ETF BMO ETFs 0.33 ZLB $ 1,091,294,553 BMO low Volatility Canadian Equity ETF BMO ETFs 0.39 CDZ $ 1,070,465,732 ishares S&P/TSX Canadian Dividend Index Fund BlackRock 0.66 ZEB $ 995,085,713 BMO S&P/TSX Equal Weight Banks Index ETF BMO ETFs 0.62 ZDV $ 856,683,380 BMO Canadian Dividend ETF BMO ETFs 0.39 ZLU $ 837,524,672 BMO Low Volatility US Equity ETF BMO ETFs 0.33 ZBK $ 781,911,371 BMO Equal Weight U.S. Banks Index ETF BMO ETFs 0.39 ZWH $ 618,795,867 BMO US High Dividend Covered Call ETF BMO ETFs 0.71 CUD $ 576,950,048 ishares US Dividend Growers Index ETF (CAD-Hedged) BlackRock 0.66 ZWU $ 576,568,819 BMO Covered Call Utilities ETF BMO ETFs 0.71 RWW.B $ 531,063,277 First Asset MSCI World Low Risk Weighted ETF (Unhedged) First Asset 0.68 ZUB $ 487,643,326 BMO Equal Weight US Banks Hedged CAD Index ETF BMO ETFs 0.39 XEI $ 480,460,500 ishares Core S&P/TSX Composite High Dividend Index ETF BlackRock 0.22 ZRE $ 475,733,839 BMO Equal Weight REITs Index ETF BMO ETFs 0.61 ZEQ $ 446,538,410 BMO MSCI Europe High Quality Hedged to CAD ETF BMO ETFs 0.45 ZWE $ 415,685,605 BMO Europe High Dividend Covered Call Hedged to CAD ETF BMO ETFs 0.7 VDY $ 395,463,060 Vanguard FTSE Canadian High Dividend Yield Index ETF Vanguard Canada 0.22 RUD $ 388,522,170 RBC Quant U.S. Dividend Leaders ETF (CAD-Unhedged) RBCGAM 0.43 RID $ 344,645,125 RBC Quant EAFE Dividend Leaders ETF (CAD-Unhedged) RBCGAM 0.54 VGG $ 328,182,426 Vangard U.S. Dividend Appreciation Index ETF Vanguard Canada 0.3 PDF $ 321,984,884 Purpose Core Dividend Fund Purpose Investments 0.67 TLV $ 292,272,569 PowerShares S&P/TSX Composite Low Volatility Index ETF Invesco 0.34 ZLI $ 273,811,638 BMO Low Volatility International Equity ETF BMO ETFs 0.45 $ 16,609,138,953 25

26 Top and bottom performing Smart Beta sorted by 1 YR TR (to May 31, 2017) Ticker AUM name Provider MER 1 YR TR ZMT $ 50,537,999 BMO S&P/TSX Equal Weight Global Base Metals Hedged CAD Index ETF BMO ETFs % CWO $ 55,291,352 ishares Broad Emerging Markets Index Fund BlackRock % FHQ $ 22,561,060 First Trust AlphaDEX U.S. Technology Sector Index ETF FT Portfolios Canada % QRT $ 6,489,680 Questrade Russell 1000 Equal Weight US Technology Index ETF Hedged to CAD Questrade % ZBK $ 781,911,371 BMO Equal Weight U.S. Banks Index ETF BMO ETFs % TXF $ 169,782,881 First Asset Tech Giants Covered Call ETF First Asset % ZUB $ 487,643,326 BMO Equal Weight US Banks Hedged CAD Index ETF BMO ETFs % ZWE $ 415,685,605 BMO Europe High Dividend Covered Call Hedged to CAD ETF BMO ETFs % ZDH $ 81,607,808 BMO International Dividend Hedged to CAD ETF BMO ETFs % FHG $ 8,991,098 First Trust AlphaDEX U.S. Industrials Sector Index ETF FT Portfolios Canada % VXM.B $ 95,901,808 First Asset Morningstar International Value Index ETF (Unhegded) First Asset % RXD $ 32,696,630 RBC Quant Emerging Markets Dividend Leaders ETF (CAD-Unhedged) RBCGAM % ZDI $ 227,748,341 BMO International Dividend ETF BMO ETFs % HOG $ 8,792,227 Horizons Canadian Midstream Oil & Gas Index ETF Horizons ETFs % VXM $ 20,335,362 First Asset Morningstar International Value Index ETF First Asset % CIE $ 221,264,460 ishares International Fundamental Index Fund BlackRock % PXG $ 10,221,305 PowerShares FTSE RAFI Global+ Fundamental Index ETF CAD Invesco % PZW $ 7,419,195 PowerShares FTSE RAFI Global Small-Mid Fundamental ETF CAD Invesco % EUR $ 23,641,761 First Trust AlphaDEX European Dividend Index ETF CAD Hedged FT Portfolios Canada % XFS $ 82,100,106 ishares FactorSelect MSCI USA Index ETF BlackRock % PBI $ 12,945,424 Purpose Best Ideas Fund Purpose Investments % ZUQ $ 251,764,468 BMO MSCI USA High Quality Index ETF BMO ETFs % ZGQ $ 34,714,833 BMO MSCI All Country World High Quality Index ETF BMO ETFs % RIE $ 19,187,475 RBC Quant EAFE Equity Leaders ETF CAD Class RBCGAM % FLI $ 165,125,422 First Asset US & Canada LifeCo Income Fund First Asset % 26

27 Ticker AUM name Provider MER 1 YR TR XFC $ 20,591,613 ishares Edge MSCI Multifactor Canada Index ETF BlackRock % WXM $ 153,821,159 First Asset Morningstar Canada Momentum Index ETF First Asset % CDZ $ 1,070,465,732 ishares S&P/TSX Canadian Dividend Index Fund BlackRock % XXM.B $ Top 84,473,213 and First bottom Asset Morningstar performing US Value Index ETF Smart Beta sorted by 1 YR First TR Asset (to May , 8.2% CSY $ 27,770,671 First Asset Core Canadian Equity Income ETF First Asset % UXM $ 2017) 46,662,569 First Asset Morningstar US Dividend Target 50 Index ETF First Asset % ZLU.U $ 59,006,376 BMO Low Volatility US Equity ETF (USD units) BMO ETFs % FXM $ 139,287,421 First Asset Morningstar Canada Value Index ETF First Asset % HEF $ 16,851,068 Horizons Enhanced Income Financials ETF Horizons ETFs % ZPW $ 234,533,612 BMO US Put Write ETF BMO ETFs % XHD $ 229,927,320 ishares US High Dividend Equity Index ETF (CAD-Hedged) BlackRock % ZLH $ 67,751,199 BMO Low Volatility US Equity ETF (CAD Hedged) BMO ETFs % NXF $ 10,541,432 First Asset Energy Giants Covered Call ETF (CAD-Hedged) First Asset % PIN $ 23,653,998 Purpose Monthly Income Fund Purpose Investments % MXF $ 8,328,026 First Asset Can-Materials Covered Call ETF First Asset % CGR $ 127,831,174 ishares Global Real Estate Index Fund BlackRock % PMM $ 20,594,100 Purpose Multi-Strategy Market Neutral Fund Purpose Investments % ZPW.U $ 15,364,280 BMO US Put Write ETF (USD Units) BMO ETFs % XXM $ 72,479,415 First Asset Morningstar US Value Index ETF (CAD Hedged) First Asset % PYF $ 92,588,160 Purpose Premiuim Yield Fund ETF Purpose Investments % HEP $ 56,135,975 Horizons Enhanced Income Gold Producers ETF Horizons ETFs % PHR $ 23,382,960 Purpose Duration Hedged Real Estate Fund Purpose Investments % ZEO $ 248,639,342 BMO S&P/TSX Equal Weight Oil&Gas Index ETF BMO ETFs % ZGD $ 33,037,499 BMO S&P/TSX Equal Weight Global Gold Index ETF BMO ETFs % HEE $ 23,113,971 Horizons Enhanced Income Energy ETF Horizons ETFs % 27

28 YTD performance US factors ETFs vs traditional market cap ETF 28

29 YTD World Factors versus Traditional All-countries ETF 29

30 So why haven t we seen anything yet? Unlike the US, where $$$ have flown out of Actively Managed Mutual Funds, here, while ETFs punch above their weight in net Inflows terms, they still represent less than 1/10 of the Mutual Fund Industry That costs matter will eventually dawn on Canadians Regulators hopefully put an end to practices that have possibly entrenched conflicts of interests The realization that the odds of Active outperforming at very low will eventually reached returns challenged Canadians New channels capitalizing on the opportunity this presents are developing ONLY 1 bank out of the big 5 (or 6) has a significant stake in the ETF game (BMO) ONLY 1 insurance company has thus far joined the fray (Manulife) A handful of Mutual Funds cos have begun to tackle the task (CI; Mackenzie; AGF; Excel; Franklin Templeton) 30

31 So why haven t we seen anything yet? BMO Global Asset Management RBC GAM ETFs TD Asset Management Manulife CI Funds $ 40,499,309,628 $ 3,012,603,242 $ 94,738,470 $ 206,017,075 $ 3,158,604,592 $ 323,510,000,000 $ 370,000,000,000 $ 333,000,000,000 $ 423,491,475,000 $ 117,000,000, % 0.81% 0.03% 0.05% 2.70% At 1/2 of BMO's level: $ 23,159,631,174 $ 20,843,668,057 $ 26,507,855,045 $ 7,323,450,939 $ 77,834,605,215 31

32 So why haven t we seen anything yet? Because while I have exposure to the ETFs listed here: The reality is I wish I could own way more of them ticker qqq-us zqq qqc hpr she exgg haz wxm aaxj-us vsc yxm.b zwu dwg zxm euo-us zbk cgl.c zmu hgm veh xxm.b vun exposure NASDAQ NASDAQ CAD H NASDAQ CAD H Active Prefs European Dividends CAD H Global Growth ETF Strategist Global Dividends (Active) Canada Momentum Asia Ex Japan CDN Corporates short term US Momentum unhedged EW Utilities Covered Call Dorsey Wright Global Momentum International Momentum EURO Leveraged Short US Banks Unhedged Gold Bullion Unhedged US IG Mid Term Corp Global Opportunities ETF Strategist Europe CAD Hedged US Value Unhedged US Total Market Unhedged 32

33 Value of the Investment $ Effect of Fees $1,000,000 $900,000 $800,000 Effect of Fees Savings 2.25% MER Mutual Fund 0.50% MER ETF $350,000 $300,000 $700,000 $600,000 $500,000 $400,000 $250,000 $200,000 $150,000 Total Savings $ $300,000 $100,000 $200,000 $100,000 $50,000 $ $0 3 3

The Benefits of ETFs ETFs are funds that are listed on the exchange and trade like stocks Being exchange traded allows ETFs to have many different investment applications and attracts many types of

34 The Benefits of ETFs ETFs are funds that are listed on the exchange and trade like stocks Being exchange traded allows ETFs to have many different investment applications and attracts many types of investors The Global AUM of ETFs has grown significantly for a number of reasons: Access to far greater number of asset classes than ever before Levels the playing field between retail and institutional Transparency, know exactly what you own Low fees Growing focus on asset allocation Significant media attention 3 4

35 ETFINSIGHT YOUR SOURCE FOR THE LATEST ETF NEWS & INSIGHTS 35

CANADIAN ETF REPORT. February 2017

CANADIAN ETF REPORT. February 2017 CANADIAN ETF REPORT February 2017 TABLE OF CONTENTS This report covers trends in the Total ETF & Smart Beta ETF markets across asset classes & geographies for: Canadian ETF AUM Canadian ETF Fund Flows