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 experienced net outflows of US$328 million during June 2018. This marks the first month of negative flows since September 2017, coinciding with the net outflows that occurred this month for ETFs and ETPs listed in the US. (All dollar values in USD unless otherwise noted.)
Highlights
- ETFs and ETPs listed in Canada experienced net outflows of $328 Mn during June 2018, marking the first month of negative flows since September 2017.
- Active products gathered the largest net inflows during June, while equity ETFs/ETPs saw the largest net outflows.
- ETF/ETP assets have decreased by 1.35% during June to $120 Bn.
The S&P 500 was up 0.62% in June and 2.65% in the first half of 2018. International markets (developed ex US) and Emerging markets posted losses during June and during the first half of 2018, down 1.48% and 3.40% in June and 2.45% and 6.05% in the first half, respectively, driven by a strong dollar, trade concerns, and rising interest rates.
According to ETFGI’s June 208 Canada ETF and ETP industry insights report, an annual paid-for research subscription service, active products gathered the largest net inflows during June with $466 Mn, while equity ETFs/ETPs experienced the largest net outflows with $865 Mn.
Year-to-date through end of June, ETFs/ETPs listed in Canada have seen net inflows of $7.64 Bn. Equity and active products gathered the largest net inflows year-to-date with $4.03 Bn and $3.87 Bn respectively, while leveraged ETFs/ETPs experienced the largest net outflows with $218 Mn.
Canadian ETF and ETP asset growth as at end of June 2018
At the end of June 2018, the Canadian ETF/ETP industry had 613 ETFs/ETPs, with 734 listings, assets of $120 Bn, from 28 providers on 2 exchanges. ETF/ETP assets have decreased by 1.35% from $121 Bn at the end of May, and increased by 2.26% year-to-date from $117 Bn at the end of 2017.
Investors have tended to invest in Dividend and Market cap ETFs during 2018, with the BMO Europe High Dividend Covered Call ETF (ZWP CN) and BMO S&P/TSX Capped Composite Index ETF (ZCN CN) capturing flows of $860 Mn and $463 Mn, respectively. A high proportion of net inflows year-to-date can be attributed to the top 20 ETFs by net new assets, which collectively gathered $5.26 Bn.
Top 20 ETFs by YTD net inflows: Canada
