ETFs are gaining popularity in the investment world, and TMX CEO is taking a closer look at this trend.

This year, the parent company of the Toronto Stock Exchange has completed a significant deal: the acquisition of ETF education company VettaFi.

John McKenzie, CEO of TMX Group, stated that the deal will increase the company's exchange-traded fund business worldwide.

"At least in the last 20 to 30 years, the exchange-traded fund has been one of the most significant innovations in the investing marketplace, according to McKenzie, who shared this insight on CNBC's "ETF Edge" this week. The goal was to offer more support to clients."

Despite a decrease in ETF activity compared to 2022, iShares data shows that action in 2023 was still higher than in previous years.

McKenzie plans to utilize the VettaFi acquisition to facilitate more ETF creation.

"ETF providers can expand their reach by introducing innovative products and solutions," McKenzie stated. "This is the two-pronged approach we're taking with our investment strategy."

As of Friday, the TMX ETF Screener lists 1,264 ETFs and ETF-related funds on the Toronto Stock Exchange.

McKenzie aims to develop new ETFs highlighting Canada's economic advantages and attract international investors with VettaFi's assistance.

"We want to be more global than local," said McKenzie. "This will help us build not just in the U.S., not just in Canada, but around the world."

On Jan. 2, the acquisition was completed and shares have risen by 11%.