Experts disagree on health of ETF business

Experts disagree on health of ETF business

Experts disagree on health of ETF business One provider’s first quarter performance suggests ETFs are doing great but another knowledgeable source isn’t so sure leaving advisors to wonder who’s right. 

The first quarter numbers for ETFs in Canada are out and a first glance at fund flows indicate advisors are increasingly looking to these products as an alternative to traditional mutual funds.

The net inflows in March were $2.68 billion, 168 per cent higher than a year earlier while net inflows for the entire quarter were $4.6 billion, a very healthy increase over Q1 2014. 

Intrigued by the strong numbers year-to-date in 2015, WP spoke with iShares Canada’s head of product, Pat Chiefalo, to get his take on what’s transpired so far this year in the ETF space and perhaps some insight to the overall health of its business and the industry overall. 

As always, Chiefalo had a lot of interesting things to say.

“I think the Q1 numbers were extremely strong certainly this year relative to last year,” said Chiefalo. “I think last year’s numbers were close to $1 billion for Q1 and right now we’re up to around $4.5 billion. So, I think the numbers are extremely strong. It was an extremely good start to the year in terms of ETF flows.”

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