07.13.2022

ETFs in Canada Suffer First Net Outflows in 35 months

07.13.2022
ETFs in Canada Suffer First Net Outflows in 35 months

ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that the ETFs industry in Canada suffered net outflows in June 2022 after 35 months of consecutive net inflows. ETFs listed in Canada suffered net outflows of US$644 million during June, bringing year-to-date net inflows to US$15.28 billion.  In June 2019 the ETFs industry in Canada suffered net outflows of US$46 million.  During the month, Canadian ETF assets decreased by 6.3%, from US$260 billion at the end of May to US$243 billion, according to ETFGI’s June 2022 Canadian ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)

Highlights

  • Assets of $243 Bn invested in ETFs listed in Canada at the end of H1 2022.
  • Assets have decreased 10.9% in H1 2022, going from $273 Bn at the end of 2021, to $243 Bn.
  • Net outflows of $644 Mn in June 2022 – the first month of net outflows in 3 years.
  • 1st  month of net outflows.
  • Net inflows of $15.28 billion in H1 2022 are the third highest on record, after net inflows of $26.35 billion in H1 2021 and net inflows of $16.82 billion in H1 2020.
  • $35.54 Bn in net inflows gathered in the past 12 months.
  • Equity ETFs and ETPs listed in Canada gathered $6.76 Bn in net inflows in H1 2022 are the third highest on record, after net inflows of $11.52 Bn in H1 2021 and net inflows of $9.56 Bn in H1 2020.

“The S&P 500 decreased by 8.25% in June and are down by 19.96% in the first half of 2022. Developed markets excluding the US decreased by 9.94% in June and are down 20.09% in H1 2022. Luxembourg (down 20.27%) and Korea (down 17.54%) saw the largest decreases amongst the developed markets in June, while Hong Kong (up 1.40%) saw the largest increase. Emerging markets decreased by 5.19% during June and are down 16.12% in H1 2022. Colombia (down 24.12%) and Brazil (down 20.14%) saw the largest decreases amongst emerging markets in June, while China (up 6.53%) saw the largest increase.” According to Deborah Fuhr, managing partner, founder and owner of ETFGI.

At the end of June 2022, the Canadian ETF industry had 1,014 ETFs, with 1,283 listings, assets of $243 Bn, from 42 providers on 2 exchanges.

During June, ETFs gathered net outflows of $644 Mn. Equity ETFs gathered net outflows of $2.20 Bn over June, bringing net inflows for the year through June 2022 to $6.76 Bn, lower than the $11.52 Bn in net inflows equity products had attracted at this point in 2021. Fixed income ETFs had net inflows of $539 Mn during June, bringing net inflows for the year through June 2022 to $1.73 Bn, lower than the $3.84 Bn in net inflows fixed income products had attracted by the end of June 2021. Commodities ETFs reported net outflows of $28 Mn during June, bringing net outflows for the year through June 2022 to $224 Mn, lower than the $214 Mn in net inflows commodities products had reported year to date in 2021. Active ETFs attracted net inflows of $1.56 Mn over the month, gathering net inflows for the year in Canada of $6.46 Bn, lower than the $7.08 Bn in net inflows active products had reported in the first five months of 2021.

Source: ETFGI

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