Products

Canadian ETFs had their first net outflow in a year last month

By Leah Golob |

 

A record number of 30 new ETFs launched in Canada during September, raising the total number of ETF products to more than 600, according to a recent report from Montreal-based National Bank of Canada.

Nine providers introduced the 30 new ETFs, including two new providers to the market, Toronto-based Evolve Funds Group Inc. and Portland, Maine-based U.S. Global Investors Inc.

Newport Beach, Calif.-based Pacific Investment Management CO. LLC (PIMCO) also became an ETF provider in Canada, the report notes, with the launch of with PIMCO Monthly Income Fund and PIMCO Investment Grade Credit Fund on Oct. 2.

Additionally, the report indicates that Canadian ETFs had a near-zero net outflow of $17 million during September. This is the first time this has occurred since Sept. 2016. A large outflow from iShares S&P/TSX 60 Index ETF (XIU), Canada's largest and most liquid ETF, offset inflows into a variety of other products, the report says.

Excluding XIU, Canadian equity ETFs took in $1.8 billion in new assets, mainly into low cost ETFs tracking broad-based indices.

Lastly, currency non-hedged ETFs tracking foreign equities (U.S. and international) brought in a combined $1.4 billion, the report says. In comparison, their currency-hedged counterparts drained $0.6 billion, continuing last month's response to sudden Canadian dollar strength.

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