Canadian ETFs break inflows record with a quarter to spare

October 20, 2021 - 1 minute 30 seconds
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Canadian Exchange Traded Funds (ETFs) have surpassed their inflows record of $41.2 billion CAD in 2020 to $41.9 billion so far this year -- and we still have three months to go. This comes after the market has already witnessed several key milestones this year; from record new launches to crossing the $300 billion AUM mark for the first time. At this pace, 2021 could be one of the most significant years for ETFs in Canada.

A lot of this increase was driven by equity ETFs, where Canadian and U.S. focused ETFs managed almost the same level of interest from investors. ESG, liquid alternative, and fixed income ETFs also brought in strong inflows.

Below are some notable movements and trends we've observed in September:
  • Equity ETFs witnessed a sharp decline in flow relative to August, with inflows mainly focused on U.S. equities. From a sector perspective, fund flows benefitted utilities, technology, and financials, while ETFs focused on real estate, energy, and consumer discretionary had net outflows in aggregate.
  • Fixed Income ETFs posted another monthly increase in flow. Most of the inflows in this space have been in aggregate bond ETFs, specifically in global and emerging market bond ETFs.
  • ESG ETFs saw a sharp uptick in inflows relative to August 2021, posting $270 million in new assets. This was largely due to a newly launched sustainable bond ETF.
  • Alternative and Commodity ETFs, which invest in non-traditional securities, saw $208 million in inflows and $35.4 million in outflows. Within the commodity space, the recent underperformance of gold led the total net redemptions, while natural gas saw the largest strong inflows. And, among cryptocurrencies, Ethereum ETFs showed relative strength compared to Bitcoin funds.
Source: Bloomberg L.P. / TD Securities

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Headshot of Andres Rincon


Director and Head of ETF Sales & Strategy, TD Securities

Headshot of Andres Rincon


Director and Head of ETF Sales & Strategy, TD Securities

Headshot of Andres Rincon


Director and Head of ETF Sales & Strategy, TD Securities

Andres Rincon heads ETF sales and strategy at TD Securities. His ETF team advises both institutional and wealth investors on the ETF landscape and strategies, publishes a broad array of ETF publications, and works with TD's ETF market making team in facilitating ETF orders. Andres joined TD Securities in 2008, first managing credit risk for the dealer, and later as a member of the Equity Derivatives division. He later took on the task of expanding TD Securities' ETF sales and strategy platform. He is also a Chartered Market Technician (CMT).