Canadian ETF Inflows Totalled $2.3 Billion In July, A Nine-Month Low

Canadian exchange traded fund (ETF) inflows fell to a nine-month low of $2.3 billion in July.
The reason for the decline was that a BlackRock bond fund suffered a large withdrawal by an institutional investor, according to National Bank of Canada.
Fixed-income ETFs saw $143 million of outflows in July, primarily because of a $1 billion outflow from the iShares Global Government Bond fund. The fund had gathered significant assets last year after BlackRock cut the fee to 0.2%.
Equity ETFs in Canada generated $1.9 billion of inflows in July, with international funds posting a $907 million advance.
While July’s inflows were the lowest since October 2020, Canada’s ETF industry is on pace for a record year in 2021, having brought in $32 billion so far this year.
Bitcoin, equities, short-term bond and asset-allocation portfolios have been popular among Canadian investors this year.
Equities have dominated Canadian portfolios, accounting for more than 50% of the year’s inflows. Cash alternative, emerging market equities and gold equities have each experienced withdrawals through the first seven months of 2021.
After suffering outflows for the last 14 months, low-volatility ETFs brought in $71 million in July, helped by an improved performance that has kept pace with market benchmarks.
A total of 22 new ETFs were introduced in Canada during July, most of them focused on environmental, social and corporate governance (ESG).