CETFA Commentary - February 2017
Industry AUM - Canadian ETF Industry assets crossed the CAD $120 Billion mark in February, on a continued combination of strong net issuance, and market gains (Est. CAD $120.3 Billion, or 35.9% higher than year ago, vs CAD $115.8 Billion as at Jan 31, 2017, respectively CAD $113.7 Billion as at Dec 31, 2016). Est. aggregate creations: +$CAD 3.7 Billion, offset by total redemptions of CAD $69M.
Impact: creations/redemptions; markets – The following table breaks down February’s AUM growth, in terms of the increase stemming from in/outflows, respectively market gains (across the aggregate product offering of each provider):
Of note: market impact was significantly more positive in February than in January, despite a consensus increasingly factoring-in a FED Funds rate hike come March 15th.
Growth: with continued favorable flows and markets, the pace of growth in AUM for the industry has risen markedly of late (+35.9% y/o/y), relative to its longer term growth profile (+20% compounded for the past 5 years to the end of February). Year over year AUM increase to Feb 28, 2017: CAD $31.8 Billion from their year ago CAD $88.5 Billion level). This should be expected to level off, particularly as Feb 2016 hadn’t yet seen markets fully recover from their Jan/Feb 2016 swoon…
Net creations by Asset class: Net creations across ETF providers for Feb 2017 is presented in the following table. Flows into equities continue to dominate (64.6% of net inflows for Feb), with Preferreds continuing to capture a notable size of flows on a relative basis:
And the latest as far as top 25 ETFs across providers (AUM change vs prior month, respectively net creates):
ETFs enjoying Top Creations for the month, respectively suffering the largest redemptions in February (by provider):
January / February 2017 new ETF launches:
Commentary produced for CETFA by ETF Insights
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