Canadian ETF industry hits new heights

Canadian ETF industry hits new heights

Canadian ETF industry hits new heights 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.

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