Fixed-income ETF flows surge

Canadian ETFs flows were strong in May, says National Bank’s Pat Chiefalo in a recent report.

Along with his research associates, he found there were inflows of $1.4 billion, or growth of 2.1%, last month. Fixed-income ETFs were the primary beneficiaries of the gain, says the report, with those holding U.S. corporate bonds leading the way.

All other asset classes had relatively flat flows. The report notes $35 million flowed out of equity and $2 million flowed out of commodities, while multi-asset gained $23 million.

In the U.S., ETF flows were $12.7 billion for the month of May. The bank’s U.S. ETF flows report says, “Fixed income was a key driver, up 4%, [while] equities were up modestly by $2.8 billion, or 0.2%.”

As well, “the conservative nature of [fund] flows [was] echoed by inverse funds being up 4%, while levered long funds were down 3%…Commodities were essentially flat.”

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