ETF/ETP assets hit record levels

Canadian ETF/ETP assets hit US$67.9 billion in August

By: James Langton
September 8, 2014 September 8, 2014
08:00

Exchange-traded fund (ETF) and exchange-traded product (ETP) assets in Canada hit new record high levels of US$67.9 billion in August, according to research firm ETFGI.

The firm reports that globally ETF/ETP assets also hit a new high of US$2.7 trillion, and that records were also reached in the U.S., Europe, and Asia Pacific (ex Japan) regions. Year-to-date, net new asset flows are now at US$185 billion for the global ETF industry, it says, which was also a record.

“In August investors invested net new money into an array of equity and fixed income exposures due to concerns over the situations in Ukraine and Gaza. The S&P 500 was up 4% in August and closed above the 2,000 threshold for the first time on August 26th. Developed markets were up slightly, emerging markets gained 3% and Latin America was up 9% in August. August was also a good month for fixed income,” says Deborah Fuhr, managing partner at ETFGI.

In Canada, ETFs/ETPs saw net inflows of US$643 million in August, with almost equal amounts going into equities and fixed income. Fixed income products saw net inflows of US$294 million, followed by US$289 million for equity ETFs/ETPs. Commodity-based products had net outflows of US$5 million.

By asset manager, BMO Asset Management Inc. recorded the largest net inflows in August, the firm says, at US$274 million, followed by Horizons Exchange Traded Funds Inc. with US$127 million, and Vanguard Investments Canada Inc. with US$78 million (all firms are based in Toronto). iShares, managed by Toronto-based BlackRock Asset Management Canada Ltd., remains the dominant provider in the space, with assets of US$42.0 billion, which represents a 61.9% market share; BMO ranks second with US$15.5 billion, and 22.9% market share; and, Horizons is third, with US$4.0 billion in assets, and a 5.9% market share.

Globally, the space saw net inflows of US$24.7 billion in August, led by equities at US$12.7 billion, followed by fixed income products at US$9.8 billion, and commodity ETFs with net inflows of US$235 million. On a global basis, iShares was the leader in monthly inflows in August, with US$14.5 billion; followed by Vanguard at US$6.4 billion; and, DB x-trackers with US$1.1 billion. iShares is also the global asset leader, with US$1.0 trillion in AUM, a 37.8% market share; SPDR ETFs is second at US$432.5 billion, a 16.0% market share; and Vanguard is third at US$414.9 billion, a 15.3% market share.