ETFs and ETPs listed in Canada gathered net inflows of USD1.74 billion during December, bringing 2018 net inflows to USD15.69 billion, according to ETFGI’s December 2018 Canadian ETF and ETP industry landscape insights report.
Assets invested in the Canadian ETF/ETP industry finished the month down 4.60 per cent, from USD121 billion at the end of November, to USD115 billion.
“The end of 2018 saw the trend in developed markets reverse, and although arguably predictable, the severity left many pundits scratching their heads,” says Deborah Fuhr, managing partner and founder of ETFGI. “This end of year stress has widely been attributed to the disruption caused by trade disputes feeding into economic data, and the view policy makers are not going to be quite as accommodating as initially expected. The S&P 500 returned -9.03 per cent during December, and down -4.38 per cent for 2018. Developed markets ex-US fell -4.62 per cent during December, led by Japan and Canada, bringing the yearly return to -13.21 per cent. Relatively speaking, EM and FM fared the month better, returning -2.68 per cent and -3.15 per cent, finishing 2018 -13.53 per cent and -11.82 per cent, respectively.”
At the end of December 2018, the Canadian ETF/ETP industry had 662 ETFs/ETPs, a 14.39 per cent increase over 2017, from 33 providers listed on two exchanges. Following net inflows of USD1.74 billion and market moves during the month, assets invested in Canadian listed ETFs/ETPs decreased by 4.60 per cent, from USD121 billion at the end of November 2018, to USD115 billion. By the end of the year, assets invested in the Canadian ETF/ETP industry were down 1.24 per cent compared to that of 2017, falling from USD121 billion to USD117 billion.
Equity ETFs/ETPs listed in Canada saw net inflows of USD752 million in December, bringing net inflows for 2018 to USD7.83 billion, less than the USD8.87 billion in inflows equity products attracted in 2017. Fixed Income ETFs and ETPs listed in Canada saw net inflows of USD977 million in December, bringing net inflows for 2018 to USD1.41 billion, less than the USD3.97 billion in net inflows seen in 2017.
Substantial inflows during December can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD2.48 billion. BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF (ZMU CN) gathered USD581 million, the largest net inflow in December.