Flows Into ETFs Return
Flows into Canada-listed ETFs reached $2.6 billion in October, pushing industry assets under management (AuM) back above $300 billion, says the ‘Canadian ETF Flows’ report from National Bank. Cash alternative ETFs, which once again brought in more than $1 billion in a single month, were the main contributor to the $1.8 billion in inflows to fixed income ETFs. “In a year with rapidly rising interest rates and widening credit spreads, cash alternative ETFs have overtaken Canadian aggregate bond ETFs in terms of year-to-date inflow,” the report said. Cash alternative ETF inflows amounted to $5.93 billion for the year up to October. With $632 million, the adjacent category of ultra short-term bond ETFs also experienced strong inflows. Foreign bond and preferred share U.S./North America bond ETFs saw outflows.