Canadian exchange traded fund (ETF) flows totaled $2.3 billion in July, bringing year-to-date investments to $32 billion, according to a report from National Bank of Canada.
Fixed-income ETFs experienced an outflow of $143 million during July due to an “institutional-sized outflow” from the iShares Global Government Bond ETF, which lost more than $1 billion during the month.
Although the fixed-income category lost assets, high-interest savings account ETFs once again had a solid month, raking in $352 million of investment dollars.
Equity ETFs had an inflow of $1.9 billion in July, accounting for 82% of flows in the month. The majority of assets ($1.1 billion) went to index-tracking broad-based ETFs investing in Canadian, U.S. and global equities.
Sector-based ETFs attracted $284 million. Investors had mixed market views in July, putting their money toward both cyclical sectors such as financials and technology, as well as defensive sectors such as energy, materials and utilities.
For the first time in 14 months, low-volatility ETFs, which had lagged market indexes throughout the rebound last year, had an inflow, taking in $71 million in July.
Multi-asset ETFs, which have not experienced a month of outflows since 2019, remained in demand in July, adding $371 million in assets.
Commodities ETFs had a modest inflow of $53 million, while cryptocurrency ETFs, which experienced a “buying frenzy” and racked up billions in assets earlier this year, added only $23 million in July.
There were 22 new ETF launches in July, with environmental, social and governance (ESG) funds emerging as the dominant theme, according to National Bank.
