Canadian equity ETFs received more than USD2.5 billion in net new assets in the third quarter of 2011, according to information compiled by the iShares exchange-traded fund (ETF) business at BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc.
This was led by the strong performance of the iShares S&P/TSX 60 Index Fund (XIU) which is the number one ETF in Canada by AUM (USD10.5 billion) and net sales (USD838 million) in the third quarter.
“These findings tell us that despite uncertainty in the global markets, domestic and international investors are still confident in the soundness of Canadian companies and of our marketplace,” says Mary Anne Wiley (pictured), head of iShares distribution, BlackRock Canada.
Results were tempered by a moderate decrease in total assets under management (AUM) in Q3, which dropped 1.8 per cent from the second quarter. Total AUM of Canadian ETFs was USD39.1 billion in Q3 compared to USD39.7 billion in AUM in Q2. In addition, inverse ETFs experienced the greatest market retraction in Q3 with USD101 million in net outflows, consistent with results from Q2.
“Investors are realising that more scrutiny is required as the structure of products is evolving and certain products may not necessarily offer the same benefits as traditional ETFs. They are becoming more discerning and are seeking products that have the features they’ve come to expect from ETFs including transparency, lower fees, liquidity and diversification,” says Wiley.