Alternate-traded fund suppliers loved a report yr in Canada, with BlackRock Inc., Vanguard Group Inc. and two of the nation’s largest banks dominating the chase for traders’ cash in 2021.
Whole inflows got here in at $52.5 billion (US$41.3 billion) for the yr, a 27 per cent improve from a yr earlier, as retail and institutional traders proceed to show to ETFs for “tactical and strategic” causes, Nationwide Financial institution Monetary analyst Daniel Straus stated in a report.
Greater than half of the brand new cash went to a few teams. Financial institution of Montreal’s ETF division topped the listing with $9.6 billion, barely forward of RBC iShares, a partnership of Royal of Financial institution of Canada and BlackRock. Vanguard was subsequent with $8.6 billion.
No different agency had internet inflows of greater than $4 billion.
The large three ended the yr with about 70 per cent of the $323 billion in ETF belongings underneath administration, in accordance with Straus’s calculations.
Rising markets and COVID-19 lockdowns assist clarify the robust yr of inflows, the analyst stated. “Over the previous 12 months, Canadian traders had little discretionary shops for his or her spending, given journey restrictions, retail closures and different lockdowns to companies like gyms, eating places and mass leisure,” he wrote. “It is sensible that enhanced shopping for energy would due to this fact make its option to funding accounts of all sorts, particularly funds.”
The Canadian market was additionally given a lift when regulators allowed the creation of bodily cryptocurrency funds. In whole, crypto ETFs acquired near $6 billion of inflows in Canada through the yr.
U.S. regulators have been extra hesitant to log off on crypto merchandise, although the primary Bitcoin-linked ETF listed within the U.S. made its debut in October.