The global ETF market hit a record high of USD4.6 trillion assets under management (AUM) at year-end, which included over USD649 billion in new assets, according to BMO Global Asset Management’s (BMO GAM) annual ETF Outlook Report.
The Canadian ETF market, once again, had a record year, with total AUM reaching CAD145 billion and inflows of CAD26 billion – an increase of 56 per cent from 2016.
The Canadian equity ETF with the most inflows last year was BMO S&P/TSX Capped Composite Index ETF (ticker: ZCN).
The Canadian fixed income ETF with the highest inflows last year was BMO Aggregate Bond Index ETF (ticker: ZAG).
The US ETF market ended the year with USD3.4 trillion in AUM and had USD465 billion in new assets.
The European ETF market had a strong year, with USD762 billion in AUM – a 40 per cent increase from last year –and inflows just over USD102 billion.
The Asia Pacific market had a record-breaking year as well, with inflows of USD61 billion and the total ETF market surpassing USD437 billion.
“The efficiency of ETFs resonates with investors; both as long term holdings and as tactical trading vehicles and we have seen increased acceptance of them across institutional, advisory and direct investors,” says Mark Raes, Head of ETF Business Development. “The array of ETF choices available to investors is now greater than ever. This industry growth has seen the emergence of new ETFs that transcend traditional equity and fixed income exposures, giving investors access to innovative market trends and complex derivative strategies.”