Canada’s ETF industry hits new heights

Assets in ETFs posted impressive growth in the first eight months of the year

Canada’s ETF industry hits new heights
If there's any indication that the exchange traded fund (ETF) industry is indeed gaining traction amongst Canadian investors, it would be the latest data by research and consultancy firm ETFGI.

ETFGI’s recent data shows that the assets invested in ETFs and ETPs listed in Canada showed 26.6% expansion in the first eight months of the year, hitting a new record of US$107 billion at the end of August. Canada's ETF industry has a total of 516 ETFs, with 636 listings and assets of US$107 billion from 24 providers on two exchanges.

For the month of August, ETFs and ETPs in Canada amassed US$2.32 billion in net flows, their 11th consecutive month of net inflows. This brings the year-to-date figure to US$13.88 billion, higher than the US$10 billion recorded during the same period last year. Interestingly, this already breaks last year's overall net inflows of US$12.7 billion.

ETFGI managing director Deborah Fuhr said the ETF industry managed to stay ahead in the game despite August being a typically challenging month for equity markets.

"This year the S&P 500 was up 0.31% in August and 11.93% YTD, MSCI ACW was up 0.44% and 15.48% YTD while MSCI EM was up 2.27% for August and 28.59% YTD (all prices in USD). Storms and political risks remain a focus for investors - the ability of the Trump administration to move forward on policy goals and hearings on Capitol Hill, Brexit negotiations, and North Korea is still an area of concern," Fuhr explained.

Equity ETFs and ETPs have reflected a record level of US$1.79 billion in net inflows in August, bringing the year-to-date level to US$6.85 billion. Fixed income ETFs and ETPs collected US$179 million, with year-to-date net inflows of US$3.49 billion lower than last year's US$4.08 billion. Meanwhile, commodity ETFs and ETPs' saw a monthly inflow of US$42 million.

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