Fixed Income ETFs Gain

Fixed income ETFs gained $2.3 billion in September, while most other Canadian categories, especially market cap-weighted equities, experienced outflows, says National Bank Financial’s monthly ETF report. After gaining $1.4 billion in August, Canadian ETFs overall gained $1.9 billion in September, with net inflows into cash alternative ETFs of $1.7 billion ‒ a record for that category. “Fixed income ETF flows show clear signs of flight to safety,” the report says. All but two fixed income ETF categories saw inflows (the two exceptions: sub-investment grade and preferred/convertible, with outflows of $210 million and $109 million, respectively). Canada aggregate bond ETFs, the top category within fixed income, experienced inflows of $364 million. Equities funds had outflows of $436 million. Within the category, the U.S. was the only region to have net positive flows ($506 million), while funds from Canada had outflows of $837 million.