Canadian ETFs Bleed in Biggest Outflows Since 2013


Canadian exchange-traded funds suffered their biggest monthly outflows since 2013 as investors dumped cryptocurrency and equity ETFs to escape a brutal selloff.

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(Bloomberg) — Canadian exchange-traded funds suffered their biggest monthly outflows since 2013 as investors dumped cryptocurrency and equity ETFs to escape a brutal selloff. 

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Total outflows for Canada-listed ETFs were C$682 million ($523 million) in June, the first monthly decline in three years, as crypto funds “faced sudden outsized redemptions,” National Bank Financial analyst Daniel Straus said in a report. Equity outflows came primarily from investors selling Canadian and US index ETFs. 

RBC iShares, an alliance between Royal of Bank of Canada and BlackRock Inc., saw the biggest loss with more than C$1 billion in withdrawals. An iShares fund that tracks Canada’s large-cap S&P/TSX 60 Index was hit with C$719 million in outflows, or about 6% of assets. 

Investors poured C$2.1 billion into fixed income ETFs during the month — despite the terrible performance of bonds so far in 2022 — “perhaps in expectation of a reversal in trend if central banks would be able to orchestrate a ‘soft landing,’ or to make strategic allocations as the yields on bonds finally start to make sense,” Straus said. 

Global equities and cryptocurrencies have plunged this year as soaring inflation and tighter monetary policy have triggered deep anxiety about a coming recession. The MSCI World Index has dropped 21% this year and the S&P/TSX Composite Index has fallen more than 11%. 

(Corrects year in fourth paragraph)



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