ETFGI Reports ETFs And ETPs Listed In Canada Gather Net Inflows Of US$1.74 Billion During December 2018

ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed in Canada gathered net inflows of US$1.74 billion during December, bringing 2018 net inflows to US$15.69 billion. Assets invested in the Canadian ETF/ETP industry finished the month down 4.60%, from US$121 billion at the end of November, to US$115 billion, according to ETFGI’s December 2018 Canadian ETF and ETP industry landscape insights report, an annual paid-for research subscription service.  (All dollar values in USD unless otherwise noted.) 

Highlights

• During 2018, ETFs/ETPs listed in Canada attracted $15.69 Bn in net inflows.
• Assets invested in the Canadian ETF/ETP industry hit record highs of $131 Bn in August 2018.
• Assets invested in the Canadian ETF/ETP industry decreased 1.24% year-on-year.

“The end of 2018 saw the trend in developed markets reverse, and although arguably predictable, the severity left many pundits scratching their heads. This end of year stress has widely been attributed to the disruption caused by trade disputes feeding into economic data, and the view policy makers are not going to be quite as accommodating as initially expected. The S&P 500 returned -9.03% during December, and down -4.38% for 2018. Developed markets ex-US fell -4.62% during December, led by Japan and Canada, bringing the yearly return to -13.21%. Relatively speaking, EM and FM fared the month better, returning -2.68% and -3.15%, finishing 2018 -13.53% and -11.82%, respectively” according to Deborah Fuhr, managing partner and founder of ETFGI.

At the end of December 2018, the Canadian ETF/ETP industry had 662 ETFs/ETPs, a 14.39% increase over 2017, from 33 providers listed on 2 exchanges. Following net inflows of $1.74 Bn and market moves during the month, assets invested in Canadian listed ETFs/ETPs decreased by 4.60%, from $121 Bn at the end of November 2018, to $115 Bn. By the end of the year, assets invested in the Canadian ETF/ETP industry were down 1.24% compared to that of 2017, falling from $121 Bn to $117 Bn.
 
 
Growth in Canadian ETF and ETP assets as of the end of December 2018



Equity ETFs/ETPs listed in Canada saw net inflows of $752 Mn in December, bringing net inflows for 2018 to $7.83 Bn, less than the $8.87 Bn in inflows equity products attracted in 2017. Fixed Income ETFs and ETPs listed in Canada saw net inflows of $977 Mn in December, bringing net inflows for 2018 to $1.41 Bn, less than the $3.97 Bn in net inflows seen in 2017.  

Substantial inflows during December can be attributed to the top 20 ETFs by net new assets, which collectively gathered $2.48 Bn. BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU CN) gathered $581 Mn, the largest net inflow in December. 

Top 20 ETFs by net new assets December 2018: Canada
 

 

Investors have tended to invest in core, fixed income, market cap and lower cost ETFs in December.