Equities also put in a strong performance in July according to National Bank data
Fixed income remains the dominant force in Canadian ETFs, leading another strong month of inflows in July.
National Bank of Canada’s latest analysis of the market shows $1.8 billion flowing into fixed income last month, almost double the $940 million for equities.
With almost $3 billion in total for the month (down from $4.4 billion in June) it brings year-to-date inflows for Canadian ETFs to $22.7 billion with more than $13 billion attributed to fixed income.
Flows were muted for many categories including commodities ($7 million), multi-asset ($84 million), inverse/levered ($47 million) and crypto asset ($6 million).
Money market funds
Money market funds remain an investor favourite with $875 million created. The money market ETF category has exploded with product development, including nine new launches this year with new ETF products including T-bills and commercial paper. Money market ETFs had inflows of $6.5 billion year-to-date, or 40% relative to 2022 year-end assets
For equity funds, the healthy results were led by Canadian equity ETFs with $487 million inflows, emerging markets added $366 million, global equities gained $297 million, while the US was out of favour with a $239 million pullback.
The financials sector is the most popular with $1.4 billion in creation and healthcare is in a distant second place with inflows of $331 million.
Product launches
Twenty new ETFs were introduced in July with money market, technology, covered call, lightly levered and multi-factor the dominating themes.
