Global X Finalizes ETF Closures Amid Canada's Record Market Growth

TORONTO, ON – February 17, 2026 – Global X Investments Canada Inc. today finalized the termination of three of its exchange-traded funds (ETFs), concluding a process that began late last year. The move, which sees the closure of funds focused on Industry 4.0 and enhanced international strategies, reflects a broader trend of strategic product management within Canada's rapidly expanding and fiercely competitive ETF market.

The firm announced the final net asset values (NAV) and termination proceeds for the Global X Industry 4.0 Index ETF (FOUR), the Global X Enhanced MSCI EAFE Index ETF (EAFL), and the Global X Enhanced MSCI Emerging Markets Index ETF (EMML). The funds were officially delisted from their respective exchanges on February 10, 2026, with today marking their effective termination date.

For investors holding units in these funds, the process now enters its final stage as liquidation proceeds are paid out. This event serves as a critical reminder of the lifecycle of investment products and the importance of understanding the mechanics behind an ETF termination.

What the Termination Means for Unitholders

Investors holding units in the terminated ETFs will automatically receive the final proceeds from the liquidation of the funds' assets, less any liabilities and dissolution expenses. According to the announcement, the final net proceeds per unit are $58.57691 for FOUR, $27.80828 for EAFL, and $30.35196 for EMML.

A key detail for investors in non-registered accounts is the treatment of the final distributions. The announcement specified a "Reinvested Non-Cash Income Distribution per Unit" for each ETF. Unlike a typical cash payout, this distribution is not paid directly to the unitholder. Instead, the amount is automatically reinvested in the fund and immediately consolidated, meaning the number of units an investor holds does not change.

However, this non-cash distribution is a taxable event for the current tax year. The primary function of this mechanism is to increase the investor's adjusted cost base (ACB) for the ETF units. By increasing the ACB, the eventual capital gain realized upon the fund's liquidation is reduced, or a capital loss is increased, which helps prevent the double taxation of that income. For those holding the ETFs in registered accounts like a TFSA or RRSP, this tax event is not a direct concern, as gains and distributions are sheltered.

Financial advisors often guide clients through such events by focusing on two key areas: understanding the immediate tax implications and planning the strategic redeployment of the returned capital to ensure their portfolio remains aligned with their long-term goals.

A Strategic Pruning in a Booming Market

While the press release does not specify the reasons for the closures, such decisions are rarely made in a vacuum. The termination of these funds is consistent with a pattern of strategic portfolio management by Global X Canada. Over the past year, the firm has discontinued several other ETFs, including those focused on niche themes like carbon credits, the metaverse, and cybersecurity. In previous statements, the company has described these moves as part of an effort to "streamline its offerings and focus on high-demand segments."

This strategic pruning comes as the Canadian asset manager, which rebranded from Horizons ETFs in May 2024 to align with its parent company, South Korea-based Mirae Asset Financial Group, continues to solidify its Canadian strategy. The alignment under the global Global X brand is intended to leverage the parent company's massive global footprint, which includes over $1 trillion in assets under management.

By discontinuing funds that may have struggled to attract sufficient assets or that no longer fit the firm's forward-looking vision, Global X can redirect resources toward developing and promoting products in higher-growth areas. The closure of the Industry 4.0 ETF (FOUR), for example, aligns with industry-wide data showing that thematic funds can face a challenging path to long-term viability if they don't sustain strong performance and asset growth.

Canada's ETF Landscape: Growth and Competition

The decision to close these funds stands in stark contrast to the explosive growth of the Canadian ETF industry. The market shattered records in 2025, with total assets under management surging by over 40% to nearly CA$800 billion. Net inflows for the year reached an unprecedented CA$154 billion as investors poured capital into a wide array of ETF strategies.

This growth has fueled intense competition among providers. With over 1,500 ETFs available to Canadian investors, issuers are under constant pressure to ensure their products remain relevant and cost-effective. Global X Canada currently ranks as the fourth-largest provider in the country, holding approximately 6% of the market share, behind giants like RBC iShares, BMO Global Asset Management, and Vanguard.

Key trends shaping the market include a significant shift towards active ETFs, which comprised over two-thirds of new launches in 2025. Investors also showed strong demand for simplicity and diversification through all-in-one asset allocation ETFs, as well as higher-yielding products like covered call funds and high-interest savings ETFs. The culling of underperforming or less popular funds is a sign of a maturing industry, where providers must be nimble and responsive to a dynamic marketplace.

Innovation Remains the Focus

Even as it closes some funds, Global X is actively launching new ones aimed at capturing emerging market trends. This dual strategy of pruning and planting underscores the firm's focus on innovation. In January 2026, the company launched the Global X Tokenization Ecosystem Index ETF (TOKN), designed to offer exposure to the future of digital assets. This followed a series of launches in 2025 that included a defense sector ETF and Bitcoin-focused covered call funds, demonstrating an agile response to geopolitical events and evolving investor interests.

The firm's stated mission is to empower investors with innovative solutions, with a particular focus on enhanced ETFs, income-generating covered call strategies, and thematic funds targeting long-term trends like artificial intelligence and uranium. This forward-looking approach, combined with competitive actions like recent fee reductions on some of its bond funds, signals that while some products may reach the end of their lifecycle, the drive to innovate and compete for investor assets remains as strong as ever.