Two reports show strong activity last month and into November
Canadians have continued to load up on ETFs in 2024 with some strong monthly net sales reported by IFIC. And inflows have now smashed previous annual records according to National Bank of Canada.
Its latest ETF Flows report reveals inflows of $8 billion in October, taking the total year-to-date to a new record high for annual inflows of $56.6 billion with two months still to go. The previous high was almost $53 billion in 2021 and the 2024 total could reach $70 million.
For October, National Bank’s analysis shows equity ETFs took in more than $1 billion for each major region - $1.6 billion for US equities, $1.4 billion for Canadian equities, and $1 billion for International equities.
Fixed income saw inflows of $3.1 billion and a broadening out of money market ETFs and into most other categories.
There was $639 million for multi-asset, $269 million for inverse/levered, and $49 million for commodities. But crypto-asset ETFs saw $81 million in redemptions.
Each of the top five ETF providers had large inflows in October. The market remains dominated by RBC iShares with a 27.6% market share, followed by BMO at 23%, and Vanguard at 14.2%. But October was also a good month for smaller providers with unique offerings including Tralucent, Quadravest, and Corton Capital.
Fifteen new ETFs launched in October including four from Capital Group and two from JP Morgan.
Canada’s strong ETF market is not the only place where the funds are attracting more money from more investors. A global report from research and consultancy firm ETFGI shows that a record 1,426 new products were listed during the first nine months of 2024 and the total assets invested in the global ETFs industry reached a record US$14.46tn at the end of September 2024. In the first nine months of 2024, the cryptocurrency market, particularly Bitcoin ETFs, dominated the ETF industry.
