September was another stellar month for exchange-traded funds (ETFs) in Canada.
According to independent research and consultancy firm ETFGI, assets invested in ETFs and ETF Products (ETP) listed in Canada grew by 28.2% in the first nine months of the year, reaching a new record of US$108 billion.
The firm's latest data also revealed that Canada-listed ETFs and ETPs saw US$13 million in net outflows in August, and US$13.87 billion in net inflows year-to-date. This is more than the US$9.46 billion in net inflows during the same period last year.
During the said past month, BMO Asset Management recorded the largest net ETF/ETP inflows, reaching US$238 million. Horizons ETFs trailed behind with US$219 million. Coming in third is RBC Global Asset Management
, with net inflows of US$214 million.
BMO also reflected the highest ETF/ETP inflows year-to-date at US$5.82 billion, far behind the Vanguard at second place with US$1.92 billion. iShares and Horizons ETFs also reported high inflows of US$1.32 billion and US$1.31 billion, respectively.
To recall, the ETF industry in Canada is composed of 535 ETFs, with 659 listings and assets of US$108 billion from 25 providers listed on two exchanges.
Check out some other interesting findings below:
- Equity ETFs/ETPs experienced net outflows of US$409 million in in September, bringing the year to date net inflows to US$6.40 billion, which is much greater than the net inflows of US$4.02 billion over the same period last year and more than the US$6.21 billion gathered in all 2016.
- Fixed income ETFs and ETPs gathered US$202 million in net inflows in September, growing year to date net inflows to US$3.69 billion, which is less than the same period last year which saw net inflows of US$4.32 billion.
- Commodity ETFs/ETPs had net outflows of US$1 million in September. Year to date, net inflows are at US$40 million, compared to net inflows of US$243 million over the same period last year.
ETFGI managing partner and co-founder Deborah Fuhr commented on the overall state of the ETF industry globally and said the US market performed the worst in the past month.
“This year the S&P 500 was up 2.06% in September and is up 14.24% year to date. The S&P 500 Value outperformed S&P 500 Growth up 3.28% and 1.11% respectively, furthering the perception of stronger economic fundamentals. Energy and Financials were September's top performing sectors, up 9.94% and 5.14%, respectively,” she said.
Fuhr said the uncertainty of Brexit negotiations and the conflict with North Korea remain the areas of concern to investors.
For more of Wealth Professional's latest industry news, click here.
Five new ETFs launched by Canadian asset manager
Could investor appetite for passives be plateauing?
More market talk: