For the fifth month in a row, Canadian ETF flows have topped $1 billion, with all equity categories showing large creations in June, says the latest ETF report from National Bank’s Daniel Straus and Ling Zhang.
It finds, “Canadian equity saw inflows across a broad base of products offering alternative index strategies,” such as dividend, fundamental and low-volatility funds.
Read: Specialty ETFs let you invest like Buffett, Icahn
In particular, investors focused on international equity, with most inflows going to broad EAFE and European region funds. As well, bond ETFs received steady inflows.
Overall, says the report, “ETF flows in the first half of 2015 were [more than] $8 billion, driven mostly by foreign equity and bonds.” Read more.
In the U.S, which attracted US$18 billion in new assets despite global turbulence, strategic beta plays were popular last month. But, “traditional cap-weighted ETFs offering both currency-hedged and non-hedged exposure saw creations as well.”
Read: Institutional investors turning to smart beta plays
In contrast, fixed income ETFs saw outflows of US$1.7 billion, mainly from investors dropping high-yield products. And, commodity funds reported US$280 million in redemptions. Read more.
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