Canadian ETFs added $1.4 billion in the month of August, led primarily by the equity asset class. Broad market Canadian equity dominated the inflows, as the iShares S&P\/TSX 60 Index ETF (XIU-T) led all ETFs with $683 million in new money. In terms of factor-based equity ETFs, income and low volatility strategies saw the highest inflows, with $199 million and $63 million, respectively. Among the sector equity funds, defensive sectors such as utilities and healthcare had the highest inflows, while energy and financials lost assets.<\/p>\n
Cash alternative ETFs continue to be the most popular fixed income category this year. Cash alternative funds added $589 in assets during the month, led by the popular CI High Interest Savings ETF (CSAV-T), and the Purpose High Interest Savings ETF (PSA-T). Canadian corporate bonds had the highest outflow during the month, with $222 million in redemptions. Excluding the cash alternative category, the fixed income asset class would have suffered a net loss in August.<\/p>\n
Multi asset ETFs added $121 million during the month, bringing the total year to date inflow to $1.8 billion. Alternative strategies, including NBI Liquid Alternatives ETF (NALT-T) and AGFiQ US Market Neutral Anti Beta ETF (QBTL-T) had the highest inflows among all asset allocation portfolios.<\/p>\n
Crypto assets shed $217 million in August. Despite a volatile year for cryptocurrencies, the asset class is near flat in terms of flows year to date. Purpose Ether ETF (ETHH-T) had the largest outflow last month, with $151 million in redemptions.<\/p>\n
The Canadian ETF market welcomed two new funds. Horizons launched the Horizons Canadian Utility Services High Dividend ETF (UTIL-T), providing exposure to Canadian dividend-paying utility service companies. The fund goes beyond traditional utilities exposure to also include pipelines and telecom companies \u2013 all deemed critical services. Utility services have typically been regarded as a defensive sector of the stock market, providing stability even during periods of volatility and bear markets. While there\u2019s been no shortage of yield-focused strategies released in 2022 to help protect portfolios from rising inflation, UTIL may appeal to investors who are also seeking protection from a broader market decline. The ETF charges an annual management fee of 0.50%.<\/p>\n
TD Asset Management has joined fellow providers and launched their own carbon credit product. The TD Carbon Credit Index ETF (TCBN-T) seeks to replicate the performance of an index which measures the investment return of global cap-and-trade carbon emission credits. This alternative asset class exhibits a historically low correlation to traditional asset classes and can also help mitigate the negative portfolio impacts of rising carbon costs and exposure. This ETF charges a management fee of 0.65%, currently the lowest among all the carbon credit ETFs in Canada.<\/p>\n