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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 attracted net inflows of US$553 Mn during September. Total assets invested in Canadian products stood at US$127 Bn by the end of September, down 2.95% from the record high of $131 Bn reached at the end of August, 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 decreased by 2.95% to $127 Bn at the end of September.
- ETFs and ETPs listed in Canada experienced net inflows of $553 Mn during September.
- Fixed income ETFs/ETPs gathered the largest net inflows during September, while Equity ETFs/ETPs saw net outflows.
“Developed markets were broadly up during September following positive economic data from the US, Japan and Eurozone, despite the US-China trade dispute and on-going political tension in Europe. Developed Markets ex-US gained 0.68% during the month while the S&P 500’s winning streak tapered off, gaining only 0.57%, with mid to small cap US equities closing down. Developing markets downward trend continued, with EM markets down 1.37% and Frontier markets down 0.18%, bringing year to date declines to 8.08% and 7.56%, respectively.” according to Deborah Fuhr, managing partner and a founder of ETFGI.
At the end of September 2018, the Canadian ETF/ETP industry had 641 ETFs/ETPs, with 768 listings, assets of $127 Bn, from 30 providers listed on 2 exchanges. Due to net inflows and market moves the assets invested in ETFs/ETPs listed in Canada decreased by 2.95% during the month, from $131 Bn at the end of August 2018, and have increased by 9% year-to-date from $117 Bn at the end of 2017.
Canadian ETF and ETP asset growth as of the end of September 2018
Fixed income ETFs/ETPs listed in Canada gathered net inflows of $247 Mn in September, bringing net inflows for 2018 to $721 Mn, substantially less than the $4.11 Bn in net inflows at this point last year.
Equity based ETFs and ETPs saw net outflows of $126 Mn in September, a sharp reversal from the previous months $1.28 Bn net inflow. September flows bring the 2018 year-to-date figure for equity based products to $5.34 Bn, still greater than the $5.17 Bn in net inflows at this point this year.
Commodity ETFs/ETPs listed in Canada saw net inflows of $2.32 Mn in September, bringing net outflows for $2.57 Mn, again substantially less than the $41.51 Mn in net inflows at this point last year.
A high proportion of net inflows during September can be attributed to the top 20 ETFs by net new assets, which collectively gathered $743.57 Mn. The Purpose High Interest Savings ETF (PSA CN) gathered $117 Mn, the largest net inflow in September.
Top 20 ETFs by net new assets September 2018: Canada
| Name | Ticker | Assets (US$ Mn) Sep-18 |
ADV (US$ Mn) Sep-18 |
NNA (US$ Mn) YTD 2018 |
NNA (US$ Mn) Sep-18 |
| Purpose High Interest Savings ETF | PSA CN | 707 | 39 | 268 | 117 |
| Invesco Ultra DLUX Long Term Govt Bond Index | PGL CN | 430 | 4 | 132 | 92 |
| RBC Target 2020 Corporate Bond Index ETF | RQH CN | 138 | 3 | 38 | 49 |
| Horizon S&P/TSX 60 Index ETF | HXT CN | 1,598 | 18 | 222 | 47 |
| Vanguard S&P 500 Index ETF | VFV CN | 1,536 | 6 | 262 | 40 |
| Vanguard Canadian Aggregate Bond Index ETF | VAB CN | 1,320 | 3 | 328 | 38 |
| BMO S&P/TSX Capped Composite Index ETF | ZCN CN | 3,085 | 4 | 627 | 37 |
| Evolve Active Canadian Preferred Share ETF | DIVS CN | 116 | 2 | 110 | 35 |
| Mackenzie Floating Rate Income ETF | MFT CN | 523 | 2 | 305 | 32 |
| iShares Core S&P/TSX Capped Composite Index ETF | XIC CN | 3,129 | 15 | (116) | 32 |
| BMO Laddered Preferred Share Index ETF | ZPR CN | 1,682 | 5 | 8 | 32 |
| Vanguard U.S. Total Market Index ETF | VUN CN | 1,176 | 4 | 262 | 30 |
| BMO Ultra Short-Term Bond ETF Acc | ZST/L CN | 85 | 1 | 64 | 25 |
| Vanguard Growth ETF Portfolio | VGRO CN | 317 | 2 | 311 | 25 |
| Vanguard Balanced Etf Portfolio | VBAL CN | 217 | 2 | 214 | 25 |
| Vanguard FTSE Canada All Cap Index ETF | VCN CN | 1,257 | 3 | 376 | 23 |
| Dynamic Ishares Active Global Dividend ETF | DXG CN | 123 | 2 | 90 | 22 |
| Horizons S&P 500 Index ETF | HXS CN | 609 | 1 | 22 | 22 |
| BMO Aggregate Bond Index ETF | ZAG CN | 2,767 | 5 | 248 | 22 |
| Purpose High Interest Savings ETF | PSA CN | 707 | 39 | 268 | 117 |
Investors have tended to invest in Domestic & US, Fixed income ETFs during September 2018.
