Canadian ETFs rebound in November with net inflows of $2.1 billion

Canadian ETFs experienced strong net inflows of more than $2.1 billion in November, with Canadian equity ETFs leading the way, according to the latest report from National Bank Financial Inc.

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.

BlackRock Asset Management Canada’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 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. 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 report reveals.

Rounding up the top five ETF providers, Vanguard Investments Canada, with $17.6 billion in AUM, had inflows of $193 million while Horizons ETFs Management (Canada) and RBC Global Asset Management, 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. Mackenzie Investments, which is in eighth 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 among 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 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.