ETF net sales gained while mutual funds saw greater net redemptions in June compared to prior month
The trajectories of Canadian exchange-traded funds (ETFs) and mutual funds continued in opposite directions in June according to new stats.
The figures from the Investment Funds Institute of Canada (IFIC) show that mutual funds posted net redemptions of $4.2 billion last month, surpassing the $3.8 billion net redemptions recorded in May, led by a $4.4 billion net pullback from balanced funds.
There was also a negative figure for equity mutuals (of $2.4 billion) while bonds ($910 million) and specialty ($97 million) posted net sales. Money market funds offset the overall net redemptions for long-term funds with net sales totalling $1.5 billion.
Mutual fund assets increased by $29 billion or 1.6% month-over-month to a total $1.9 trillion.
The total net redemptions for Canadian mutual funds year-to-date at the end of June reached $12.8 billion.
ETF net sales
Meanwhile, ETFs saw net sales across the board to a total of $3.5 billion, driven by bond ($1.2 billion), equity ($1 billion), specialty ($443 million), and balanced ($151 million) long-term funds, and $649 million for money-market funds.
ETF assets increased by $9.6 billion or 2.8% month-over-month to a total of $348.4 billion at the end of June 2023.
Total ETF net sales year-to-date at the end of June reached $16 billion.
