Canadian Listed ETF Assets Race Past the $200B Mark
Canadian ETFs have put on a powerhouse performance this year, crossing the $200 billion mark by end November.
The National Bank of Canada’s report on Canadian ETF Flows for November 2019 is out.
Canadian ETF assets as at November 2019 were $200.44 billion:
For November, equities topped the tally of inflows at $ 2.1 billion, with fixed income following at $ 1.9 billion. However, for the 11 months to November 2019, fixed-income topped inflows with $ 12.62 billion, with equities following at $ 8.2 billion.
November was the best month this year for ETF inflows with $ 4.5 billion pouring in. The S&P/TSX composite index touched a fresh all-time high in late November, having put on more than 3% during the month.
Canadian ETFs: January to November 2019
The top four ETF’s for inflows were ($M):
|BMO Aggregate Bond index||$ 1,444|
|I Shares Core Canadian US Bond Index||$ 1,301|
|BMO Long Federal Bond Index||$ 1,191|
|BMO S&P 500 index||$ 1,152|
The top four ETF’s for outflows were ($M):
|I shares S&P TSX 60 index||-$ 1118|
|BMO US dividend||-$ 549|
|I Shares Core S&P US Total Market Index||-$ 464|
|BMO S&P TSX Composite Index||-$ 445|
Equity ETF flows by focus ($M):
- Cap-weighted ETF’s recorded inflows of $ 4808, while
- Low volatility factor funds saw inflows of $ 2362.
Fixed-income ETF flows by type ($M):
- Canada Aggregate $ 6037
- Foreign $ 2903
- HISA $ 2044
Outlook for Canadian ETF’s
Meanwhile, a survey of 106 advisors by Toronto-based ETF provider Evolve Funds Group Incorporated showed that clients preferred active ETF’s over passive funds.
According to the survey ETF’s will likely become a bigger part of Canadian portfolios because of lower fees, better liquidity, transparency and wider range of products.
Allocations to ETF’s would grow from 19% today to around 28% by 2021. 81% of advisors surveyed said they using active ETF’s compared to 66% for passive ETF’s. Whereas 40% were using smart beta strategies, only 8% said they did not include ETF’s in client portfolios.
[Related Story: The RISE and RISE of Global ETFs’ AUM]
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