More than 10% of the total was achieved in September according to latest stats
Canada’s ETF industry continues to grow with inflows year-to-date at $48.8 billion, putting it firmly on course to be a record breaking year.
The latest Canadian ETF Flows report from National Bank of Canada shows that September was an impressive month, recording inflows of $5.8 billion – the third highest month of the year so far - and 24 new fund launches.
The strong pace would suggest the 2021 full-year record for Canadian ETFs of $52.5 billion will be beaten.
October has already seen several new ETF launches including two new active funds from JP Morgan Asset Management and three new ETF series from Manulife.
Investors were split between fixed income and equities with inflows for both above $2 billion last month, but all major asset classes recorded positive flows.
Canadian equity ETFs posted inflows of more than $1 billion with US equities picking up just short of a million dollars less, and international funds gained $572 million. Fixed income recorded $2.3 billion, commodities $90 million, multi-asset $441 million, inverse/levered $108 million, and crypto assets $30 million.
Money market ETFs saw a strong $658 million, the highest monthly inflow this year for this category. Recent IFIC stats for August showed these funds were out of favour and the only asset class to post net redemptions.
The 24 new Canadian ETFs launched in September included “a wide range of strategies such as actively managed bond and equity ETFs, small-cap and mid-cap focused ETFs, dividend and growth ETFs, sector and thematic ETFs and option-based ETFs,” the report stated.
There was also a new provider for the market as Corton Capital launched its Corton Enhanced Income Fund.
A Canadian ETF leader, former BMO head of ETFs Kevin Gopaul was recently tempted to make the move favoured by many Canadian snowbirds and relocate to Florida to join a boutique ETF manager.
