Canadian ETFs received more than $2.5 billion in net new assets in the third quarter of 2011, according to information compiled by the iShares business at BlackRock Asset Management Canada Ltd.
“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, head of iShares distribution, BlackRock Canada.
Results were tempered by a moderate decrease in total assets under management in Q3, which dropped 1.8% from the second quarter. Total AUM of Canadian ETFs was $39.1 billion in Q3 compared to $39.7 billion in AUM in Q2. In addition, inverse ETFs experienced the greatest market retraction in Q3 with $101 million in net outflows, consistent with results from Q2.
“Investors are realizing 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.
The latter part of the third quarter saw the entrance of RBC Global Asset Management Inc. as the newest entrant into the Canadian ETF marketplace. It introduced its first TSX-listed ETFs products in the marketplace in August.
Fifteen new ETFs have been introduced in the third quarter bringing the total number of ETFs introduced since the beginning of 2011 to 56.
iShares ETFs continues to be the market leader among all the providers with 68.4% of market share and $26.7 billion AUM followed by Claymore Investments, Inc. with 15.8% and $6.2 billion AUM.
BlackRock Canada is an indirect, wholly owned subsidiary of BlackRock, Inc.