Canadian ETF flows reach $6.6B in February

February may be a short month, but it was a big one for ETF flows and product launches.

Canadian ETFs had inflows of $6.6 billion last month ($5.8 billion when adjusted for ETFs that invest in other ETFs), according to a report from National Bank of Canada.

Equities ETFs had “robust” inflows of $4.5 billion, led once again by broad-based index-tracking funds. Technology sector and value factor ETFs also contributed to strong sales in the equities category.

Two Bitcoin ETFs — one from Purpose Investments and another from Evolve ETFs — launched in February, raking in $660 million and $41 million, respectively. The Purpose Bitcoin ETF was the most traded ETF in Canada within two days of being listed, the report said.

Fixed-income funds had inflows of $658 million in February, with investors showing a preference for short-term bonds. Multi-asset ETFs experienced inflows of $646 million.

For the second straight month, there was an outflow from high-interest savings account ETFs, reflective of a “pattern that has happened in the past when growth and equity demand surge back to prominence,” the report noted.

Commodities and inverse/levered ETFs had relatively modest inflows of $26 million and $45 million, respectively.

February saw 18 new ETFs launch in Canada. Total ETF assets under management reached $269.5 billion at the end of the month.

Staff

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