September was an interesting month for Canada’s ETF space


    U.S. equity ETFs recorded net inflows of $ 888 million, while international stocks rose a total of $ 544 million. But on one rare occasion, Canadian equity ETFs saw net redemptions of $ 1.74 billion in September.

    This included net redemptions of nearly $ 2 billion from the iShares S & P / TSX 60 Index ETF (XIU), which the report said was “inconsistent with typically observed institutional flows.” That left RBC iShares with a net outflow of $ 1.568 billion, by far the largest monthly loss among any of the various ETF providers, although that was still only an estimated 2% of its total AUM.

    Sector ETFs saw $ 202 million in inflows in September – regardless of outflows from energy and real estate ETFs – making them the second largest category after market cap-weighted ETFs. Utilities, technology, and financials were the top three sub-categories of sector ETFs in terms of inflows at $ 101 million, $ 83 million and $ 54 million, respectively.

    “Hamilton also had remarkable percentage inflows,” the report said. Given the year-long demand for financial stocks, the company had year-round inflows for its actively managed financial sector ETFs, representing an inflow of 136% of AUM for the year ended September.

    Mackenzie, Vanguard, and BMO saw the top three provider inflows in September, with Mackenzie leading the way by a wide margin, grossing a net total of $ 1.125 billion for the month. Aside from significant creations in its passive US equity ETF QUU, the company saw significant inflows of $ 200 million into its recently launched sustainable bond ETF MGSB.


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