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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 reached a new high of US$123 billion in assets, following net inflows and market moves of US$987 million during July, according to ETFGI’s July 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 2.84% to reach a record $123 Bn at the end of July.
- ETFs and ETPs listed in Canada experienced net inflows of $987 Mn during July.
- Fixed income ETFs/ETPs gathered the largest net inflows during July, while commodity ETFs/ETPs saw the smallest.
“The S&P 500 gained 3.72%, international markets ex US were up 1.93% and emerging markets up 2.81%. Investors are still concerned about the impact of trade wars and Brexit,” according to Deborah Fuhr, managing partner and a founder of ETFGI.
At the end of July 2018, the Canadian ETF/ETP industry had 618 ETFs/ETPs, with 741 listings, assets of $123 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 2.84% during the month, from $120 Bn at the end of June 2018, and increased by 5.17% year-to-date from $117 Bn at the end of 2017.
Canadian ETF and ETP asset growth as at end of June 2018
Fixed income ETFs and ETPs gathered net inflows of $274 Mn in July, bringing net inflows for 2018 to $179, which is less than the $3.76 Bn in net inflows at this point last year.
Similarly, equity ETFs/ETPs listed in Canada gathered net inflows of $148 Mn in July, bringing net inflows for 2018 to $4.17 Bn, which is less than the $4.63 Bn in net inflows at this point last year.
Commodity ETFs/ETPs listed in Canada saw net inflows of $4.74 Mn in July, bringing net inflows for 2018 toto $4.91 Mn, which is less that the $12.1 Mn in net inflows at this point last year.
Net flows primarily went into actively managed ETFs, with net new assets of $558 Mn at the end of July, bringing net inflows to $4.50 Bn for 2018.
A high proportion of net inflows during July can be attributed to the top 20 ETFs by net new assets, which collectively gathered $1.01 Bn. The BMO S&P 500 Index ETF (ZSP CN) gathered $131 Mn, the largest net inflow in July.
Top 20 ETFs by net new assets July 2018: Canada
| Name | Ticker | Assets (US$ Mn) Jul-18 |
ADV (US$ Mn) Jul-18 |
NNA (US$ Mn) YTD 2018 |
NNA (US$ Mn) Jul-18 |
| BMO S&P 500 Index ETF | ZSP CN | 4,083 | 13 | 429 | 131 |
| AGFiQ Enhanced Global Infrastructure ETF | QIF CN | 211 | 4 | 208 | 89 |
| iShares Floating Rate Index ETF | XFR CN | 529 | 6 | 212 | 80 |
| BMO MSCI Emerging Markets Index ETF | ZEM CN | 454 | 4 | 231 | 71 |
| BMO Ultra Short-Term Bond ETF | ZST CN | 177 | 3 | 59 | 50 |
| Vanguard FTSE Canada All Cap Index ETF | VCN CN | 1,204 | 4 | 307 | 49 |
| iShares MSCI USA Minimum Volatility Index Fund | XMU CN | 186 | 3 | 55 | 49 |
| Horizons Active Floating Rate Bond ETF | HFR CN | 545 | 4 | 232 | 47 |
| Mackenzie Floating Rate Income ETF | MFT CN | 441 | 3 | 230 | 47 |
| BMO Short Corporate Bond Index ETF | ZCS CN | 1,125 | 4 | (170) | 44 |
| iShares Core S&P 500 Index ETF (CAD-Hedged) | XSP CN | 3,425 | 19 | 141 | 40 |
| BMO Aggregate Bond Index ETF | ZAG CN | 2,692 | 8 | 191 | 40 |
| Mackenzie Maximum Diversification US Index ETF | MUS CN | 91 | 2 | 50 | 39 |
| iShares Core S&P US Total Market Index ETF | XUU CN | 997 | 3 | 49 | 38 |
| Horizons US 7-10 Year Treasury CAD Hedged ETF | HTH CN | 42 | 2 | 38 | 38 |
| Horizon S&P/TSX 60 Index ETF | HXT CN | 1,514 | 16 | 125 | 32 |
| BMO Short Federal Bond Index ETF | ZFS CN | 726 | 2 | 27 | 32 |
| BMO S&P/TSX Capped Composite Index ETF | ZCN CN | 2,980 | 6 | 493 | 30 |
| Vanguard Growth ETF Portfolio | VGRO CN | 250 | 3 | 246 | 30 |
| BetaPro Natural Gas 2x Daily Bull ETF | HNU CN | 106 | 8 | (125) | 28 |
Investors have tended to invest in Active and Market cap ETFs during July 2018.
