ETFGI Reports Assets Invested In ETFs And ETPs Listed In The Canada Reached A New High Of US$131 Billion At The End Of August 2018

ETFGI, a leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed in Canada reached a new high of US$131 billion in assets, following net inflows and market moves of US$2.19 billion during August. The 6.76% increase in total assets marks the largest monthly change since March 2016, according to ETFGI’s August 2018 Canada ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

Highlights

• ETF/ETP assets have increased by 6.76% to reach a record $131 Bn at the end of August.
• ETFs and ETPs listed in Canada experienced net inflows of $2.19 Bn during August.
• Equity ETFs/ETPs gathered the largest net inflows during August, while commodity ETFs/ETPs saw net outflows.

“On August 22, 2018 the S&P 500 marked its longest bull market -  3,453 days, without a bear market - a 20% drop from the index’s 52-week high. August was a strong month for U.S. equities with economic strength and strong corporate earnings pushing the S&P 500 to reach record highs and gain 3.26% during the month and up 9.94% year to date.  Most non-US markets suffered declines during August due to investors’ concerns over trade tensions, Brexit, currency crises and a fear of contagion.  Developed markets ex US declined 1.44% in August while up 0.46% YTD, EM markets were down 3.51% and are down 0.81% YTD and Frontier markets were down 4.50% and are down 1.66% YTD.” according to Deborah Fuhr, managing partner and a founder of ETFGI.

At the end of August 2018, the Canadian ETF/ETP industry had 624 ETFs/ETPs, with 750 listings, assets of $131 Bn, from 28 providers listed on 2 exchanges. Due to net inflows and market moves the assets invested in ETFs/ETPs listed in Canada increased by 6.76% during the month, from $123 Bn at the end of July 2018, and have increased by 12.28% year-to-date from $117 Bn at the end of 2017.

Canadian ETF and ETP asset growth as of the end of August 2018

 

Equity based ETFs and ETPs gathered net inflows of $1.28 Bn in August, bringing net inflows for 2018 to $5.47, marginally less than the $5.78 Bn in net inflows at this point last year.

Fixed income ETFs/ETPs listed in Canada gathered net inflows of $349 Mn in August, bringing net inflows for 2018 to $474 Mn, substantially less than the $3.87 Bn in net inflows at this point last year.

Commodity ETFs/ETPs listed in Canada saw net outflows of $9.80 Mn in August, bringing net outflows for 2018 to $4.89 Mn, again substantially less than the $12.1 Mn in net inflows at this point last year.

A high proportion of net inflows during August can be attributed to the top 20 ETFs by net new assets, which collectively gathered $2.03 Bn. The iShares S&P/TSX 60 Index Fund ETF (XIU CN) gathered $507 Mn, the largest net inflow in August.

 Top 20 ETFs by net new assets August 2018: Canada

Investors have tended to invest in Domestic Market cap and Equity ETFs during August 2018.