ETFGI Reports ETFs And ETPs Listed In Canada Gather Net Inflows Of US$919 Mn During October 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$919 Mn during October. Following a turbulent month for financial markets, total assets invested in the Canadian ETF and ETP industry fell 6.11% during October, from US$127 Bn at the end of September, to US$120 Bn, according to ETFGI’s October 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

• Total Assets in ETFs and ETPs listed in Canada decline 6.11% to $120 Bn in October.
• Net new assets gathered by ETFs/ETPs listed in Canada were $919 Mn in October.
• Equity-based, actively managed and leveraged ETFs/ETPs saw net inflows during October, while all other exposure types saw net outflows. 

 
“Few markets managed to avoid the October sell off, as investors grew jittery at the prospects of further rate hikes from the US treasury and any hope of resolutions to trade disputes appeared to be diminishing, be it in Europe or the US. Developed and developing markets saw similar declines during the month. Aside from the US, where strong year-to-date performance cushioned the fall, October pushed many indices deeper into negative territory for the year. The S&P 500 fell 6.84% over the month, retaining a 3.1% gain year-to-date, while European markets fell 7.82%, bringing year-to-date decline to 9.56%. EM markets down 7.60% and Frontier markets down 3.36%, bringing year to date declines to 15.07% and 10.68%, respectively.” according to Deborah Fuhr, managing partner and a founder of ETFGI.

At the end of October 2018, the Canadian ETF/ETP industry had 654 ETFs/ETPs, with 784 listings, assets of $120 Bn, from 33 providers listed on 2 exchanges. Following net inflows of $919 Mn and market moves during the month, assets invested in ETFs/ETPs listed in Canada decreased by 6.11%, from $127 Bn at the end of September 2018, to $120 Bn.
 

Growth in Canadian ETF and ETP assets as of the end of October 2018

 
Equity ETFs/ETPs listed in Canada attracted net inflows of $804 Mn in October, growing net inflows for 2018 to $6.19 Bn, slightly less than the $6.44 Bn in net inflows at this point last year.

Fixed Income ETFs and ETPs listed in Canada saw the greatest outflows of any asset class during the month, totalling $477 Mn, bringing net inflows for 2018 to $244 Mn, considerably less than the $3.52 Bn in net inflows at this point last year.

Substantial inflows during October can be attributed to the top 20 ETFs by net new assets, which collectively gathered $1.65 Bn. The Purpose High Interest Savings ETF (PSA CN) gathered $158 Mn, the largest net inflow in October. 

Top 20 ETFs by net new assets October 2018: Canada

 
Investors have tended to invest in core, market cap and lower cost ETFs in October.