November brings highest inflows of the year as fixed-income funds’ success story continues
It was a sweet November for Canada’s ETF space as listed ETF assets have officially exceeded $200 billion.
According to the latest Canadian ETF Flows report from National Bank Financial, Canadian ETFs attracted $4.5 billion in November — the largest monthly inflow of 2019 as well as one of the highest on record for a single month.
Inflows were reported across all categories, with no asset class or region shedding assets.
Equity ETFs continued to gain with $2.1 billion in inflows. Canada-focused funds collected $980 million, followed closely by $836 million for international mandates; US-geared funds trailed distantly with $342 million.
Among Canada-focused ETFs, broad-market and low-volatility ETFs were the most popular, while dividend- and income-themed products as well as sector-focused ETFs also saw notable inflows. On the US front, top spots went to broad-market, currency unhedged US equity ETFs, with US dividend-focused strategies shedding assets. Inflows into developed and developing markets, the report noted, were funnelled mainly into a few broad-market products.
Fixed-income ETFs notched another strong month with $1.9 billion created; with year-to-date total inflows of $12.6 billion, the category has easily been the most in-demand this year. The largest monthly inflows — in fixed income as well as among all categories — went into Canada aggregate bond, Canada corporate bond, and savings-account products.
Outflows from bond ETFs were somewhat muted, with outflows from redemptions observed only among Canada government-bond ETFs, particularly those exposed to short-term federal bonds, provincial bonds, and floating-rate bonds. Foreign bond ETFs took in $199 million.
Meanwhile, inflows into multi-asset ETFs were dominated by a few products, with balanced funds being in favour last month.