Canadian ETFs experienced strong net inflows of more than $2.1 billion in November, with Canadian equity ETFs leading the way, as four ETF providers launched nine products in the month, according the latest Canadian ETF Flows report from Toronto-based National Bank Financial Inc. (NBF).
Canadian equity ETFs had net inflows of $1.3 billion while fixed-income ETFs brought in $691 million in November. In contrast, flows to U.S. and international equity ETFs were flat in the month, with the former bringing in $30 million in assets while the latter experienced net outflows of $28 million. So far in 2018, a net $18 billion has flowed into Canadian ETFs.
Toronto-based BlackRock Asset Management Canada Ltd.’s iShares S&P/TSX 60 Index ETF led the way, with $877 million in net inflows in November, up significantly from $682 million in outflows during October’s disappointing broad equity index returns.
Canada’s ETF industry had a total of $160.9 billion in assets under management (AUM) as of Nov. 30, up by 2.2% from $157.4 billion a month earlier, but down by 1.4% from $163.2 billion as of Sept. 30.
In terms of ETF providers, BlackRock Canada’s iShares division had the most inflows in the month, at almost $1.5 billion. That’s not only up significantly from $555 million in outflows during October, but BlackRock’s iShares division expanded its lead as Canada’s market leader over Toronto-based BMO Asset Management Inc. (BMOAM) BlackRock’s iShares division now has $58.2 billion in AUM, up from $56.2 billion as of Oct. 31. Meanwhile, BMOAM had net outflows of $199 million in November and now has $49.7 billion in ETF AUM, the NBF report reveals.
Rounding up the top five ETF providers, Toronto-based Vanguard Investments Canada Inc., with $17.6 billion in AUM, had inflows of $193 million while Horizons ETFs Management (Canada) Inc. and RBC Global Asset Management Inc. (RBCGAM), both also based in Toronto, experienced mixed fortunes in the month. Horizons had net inflows of $88 million in November, and now has $9.8 billion in AUM, while RBCGAM, which had outflows of $39 million, now has $4.8 billion in AUM.
Year-to-date as of Nov. 30, BMOAM and Vanguard are running neck and neck with the most inflows, at $4.1 billion and $4 billion, respectively. Toronto-based Mackenzie Investments, which is in eight place among ETF providers with more than $3.1 billion in AUM, has net inflows of more than $1.9 billion, while Toronto-based Purpose Investments Inc., which had the second largest inflows in November of $279 million, has had more than $1.2 billion in inflows during 2018 thus far. Purpose is in ninth place of all ETF providers, slightly behind Mackenzie.
Meanwhile, four firms launched nine new ETFs during November. Horizons introduced a technology-themed ETF (Horizons Industry 4.0 Index) that focuses on global firms that advance technology merging the physical and digital worlds. TD Asset Management Inc. launched four actively managed ETFs; Evolve Funds Group Inc. added an active fixed-income ETF and an active U.S. equity ETF; and Purpose introduced two new series for the existing Purpose Premium Yield Fund.