Assets invested Canadian ETFs and ETPs reached a record high of USD145.69bn in October 2019

ETFs listed in Canada saw net inflows of USD2.82 billion in October, bringing year-to-date net inflows to USD14.16 billion which is significantly more than the USD12.36 billion gathered at this point last year.

In the month, Canadian ETF assets increased by 2.8%, from USD141.75 billion in September to USD145.69 billion. Year-to-date through the end of October, Canadian ETF assets increased 26.2% from USD115.48 billion to reach a record USD145.69 billion. At the end of October 2019, the Canadian ETF/ETP industry had 739 ETFs/ETPs, with 898 listings, from 38 providers on 2 exchanges.

“The Fed rate cut and the looming hope for an agreement between US-China shaped a favourable investment environment in equity markets globally which led the S&P 500® to gain 3.2% during October. International markets also gained, with the S&P Developed Ex-U.S. and the S&P Emerging BMI both up 4 per cent. The better performance of the Equity Markets reflected into a new record high of USD145.69 billion and higher inflows of ETFs/ETPs exposed to Equity Indices rather than Fixed Income,” says to Deborah Fuhr, managing partner, founder and owner of ETFGI.

Active ETFs/ETPs gained inflows of USD1.28 billion in October, bringing net inflows for the year to October 2019 to USD7.39 billion, higher than the USD6.19 billion in net inflows active products had attracted at this point in 2018. Equity ETFs/ETPs gathered net inflows of USD1.05 billion in October, bringing net inflows for the year to October 2019 to USD2.84 billion, considerably lower than the USD6.15 billion in net inflows equity products had attracted by the end of October 2018.  Fixed income ETFs and ETPs experienced net inflows of USD556 Mn in October, growing year to date net inflows to USD3.59 billion, which is greater than the same period last year which saw net inflows of USD244 million.

Substantial inflows can be attributed to the top 20 ETFs by net new assets, which collectively gathered USD2.39 billion in October, CI First Asset High Interest Savings ETF (CSAV CN) gathered USD312.32 million alone.

Investors have tended to invest in Active and Equity ETFs in October.