CANADIAN ETF REPORT. February 2017

Transcription

1 CANADIAN ETF REPORT February 2017

2 TABLE OF CONTENTS This report covers trends in the Total ETF & Smart Beta ETF markets across asset classes & geographies for: Canadian ETF AUM Canadian ETF Fund Flows Canadian ETF Volumes 2

3 CANADIAN ETF AUM February

4 KEY AUM OBSERVATIONS ETF AUM Grew to $119.6B in February, 32.2% YoY Smart Beta Market Share Grew to 14.3% in February There Were 481 ETFs At The End Of February, 142 in Smart Beta ETF AUM Continues Its Strong Momentum Smart Beta AUM Was $17.0B in February, 46.0% YoY Smart Beta AUM Continues to Show Strong Momentum 4

5 CANADIAN ETF AUM ETF AUM Grew to $119.6B in February, 32.2% YoY 5

6 CANADIAN ETF AUM Smart Beta Market Share Grew to 14.3% in February 6

7 ETF COUNT MONTHLY There Were 481 ETFs At The End Of February 7

8 ETF AUM MOMENTUM ETF AUM Showing Strong Momentum 8

9 ETF AUM BY ASSET CLASS Equity Remains Largest Asset Category 9

10 ETF AUM BY ASSET CLASS Equity Remains Largest Asset Category 10

11 ETF AUM BY GEOGRAPHY Strong Home Bias For Canadian ETFs Remains 11

12 ETF AUM BY GEOGRAPHY Strong Home Bias For Canadian ETFs Remains 12

13 ETF AUM BY FUNDS Top 20 ETFs by AUM Top 20 Smart Beta ETFs by AUM Ticker ETF AUM ($ Mil.) Ticker ETF AUM ($ Mil.) XIU ishares S&P/TSX 60 Index ETF 12,626 XDV ishares Canadian Select Dividend Index ETF 1,526 XSP ishares Core S&P 500 Index ETF (CAD- Hedged) 4,022 CDZ ishares S&P/TSX Canadian Dividend Aristocrats Index ETF 1,081 ZSP BMO S&P 500 Index ETF 3,295 ZEB BMO S&P/TSX Equal Weight Banks Index ETF 1,019 XIC ishares Core S&P/TSX Capped Composite Index ETF 2,847 ZBK BMO Equal Weight US Banks Index ETF 771 ZAG BMO Aggregate Bond Index ETF 2,328 CUD ishares US Dividend Growers Index ETF CAD-Hedged 688 XBB ishares Canadian Universe Bond Index ETF 2,294 XTR ishares Diversified Monthly Income ETF 629 XSB ishares Canadian Short Term Bond Index ETF 2,249 ZUB BMO Equal Weight US Banks Hedged to CAD Index ETF 504 ZCN BMO S&P/TSX Capped Composite Index ETF 2,183 XEI ishares Core S&P/TSX Composite High Dividend Index ETF 466 CBO ishares 1-5 Year Laddered Corporate Bond Index ETF 1,974 ZRE BMO Equal Weight REITs Index ETF 421 ZPR BMO Laddered Preferred Share Index ETF 1,828 VDY Vanguard FTSE Canadian High Dividend Yield Index ETF 410 XCB ishares Canadian Corporate Bond Index ETF 1,710 XQB ishares Core High Quality Canadian Bond Index ETF 389 XDV ishares Canadian Select Dividend Index ETF 1,526 CLU ishares US Fundamental Index ETF 320 CPD ishares S&P/TSX Canadian Preferred Share Index ETF 1,375 ZEQ BMO MSCI Europe High Quality Hedged To CAD Index ETF 318 ZWB BMO Covered Call Canadian Banks ETF 1,348 VGG Vanguard US Dividend Appreciation Index ETF 292 XRE ishares S&P/TSX Capped REIT Index ETF 1,321 RWW First Asset MSCI World Low Risk Weighted ETF 286 ZCS BMO Short Corporate Bond Index ETF 1,317 TLV PowerShares S&P/TSX Composite Low Volatility Index ETF 270 XIN ishares MSCI EAFE Index ETF (CAD-Hedged) 1,293 ZLI BMO Low Volatility International Equity ETF 256 ZLB BMO Low Volatility Canadian Equity ETF 1,228 CRQ ishares Canadian Fundamental Index ETF 235 ZCM BMO Mid Corporate Bond Index ETF 1,225 PXC PowerShares FTSE RAFI Canadian Fundamental Index ETF 230 ZDY BMO US Dividend ETF 1,205 ZEO BMO S&P/TSX Equal Weight Oil & Gas Index ETF

14 SMART BETA AUM MONTHLY Smart Beta AUM Was $17.0B in February, 46.0% YoY 14

15 T-12 SMART BETA MOMENTUM Smart Beta AUM Showing Strong Momentum 15

16 SMART BETA AUM BY ASSET CLASS Equity Remains Largest Asset Class in Smart Beta 16

17 SMART BETA AUM BY ASSET CLASS Equity Remains Largest Asset Class in Smart Beta 17

18 SMART BETA AUM BY GEOGRAPHY A Strong Home Bias For Smart Beta Funds 18

19 SMART BETA AUM BY GEOGRAPHY A Strong Home Bias For Smart Beta Funds But Shrinking 19

20 CANADIAN ETF FUND FLOWS February

21 KEY FUND FLOWS OBSERVATIONS ETF Fund Flows Were $2.5B in February, 55.3% YoY Annualized ETF Flows Were $18.2B, 12.3% YoY Smart Beta Fund Flows Were $356.4M in February, 486.7% YoY Annualized Smart Beta Flows Were $3.1B, 42.7% YoY Market Cap Weighted Exposure to Canada & U.S. Equity Saw Largest Inflows Canadian Financials Sector & Low Vol Saw Largest Outflows 21

22 ETF FUND FLOWS MONTHLY ETF Fund Flows Were $2.5B in February, 55.3% YoY 22

23 T-12 ETF FUND FLOWS MOMENTUM Annualized ETF Flows Were $18.2B, 12.3% YoY 23

24 ETF FUND FLOWS BY ASSET CLASS Equity & Fixed Income Flows Were Strong in February 24

25 ETF FUND FLOWS BY GEOGRAPHY Flows To Canada & U.S. Dominated in February 25

26 ETFs BY FUND FLOWS Top 20 ETFs by Inflows Top 20 ETFs by Outflows Ticker ETF Flows ($ Mil.) Ticker ETF Flows ($ Mil.) XIU ishares S&P/TSX 60 Index ETF 458 XFN ishares S&P/TSX Capped Financials Index ETF ZCN BMO S&P/TSX Capped Composite Index ETF 122 ZLB BMO Low Volatility Canadian Equity ETF HNU BetaPro Natural Gas 2x Daily B 112 HND BetaPro Natural Gas -2x Daily - 63 ZSP BMO S&P 500 Index ETF 108 XSP ishares Core S&P 500 Index ETF (CAD- Hedged) - 55 ZAG BMO Aggregate Bond Index ETF 102 XBB ishares Canadian Universe Bond Index ETF - 50 ZEA BMO MSCI EAFE Index ETF 101 PGL PowerShares Ultra Liquid Long Term Government Bond Index ETF - 43 XIC ishares Core S&P/TSX Capped Composite Index ETF 90 ZLH BMO Low Volatility US Equity Hedged to Cad Etf - 42 ZEB BMO S&P/TSX Equal Weight Banks Index ETF 83 XCB ishares Canadian Corporate Bond Index ETF - 28 ZLU BMO Low Volatility US Equity ETF 83 HOU BetaPro Crude Oil 2x Daily Bul - 25 ZPR BMO Laddered Preferred Share Index ETF 82 HXQ Horizons NASDAQ 100 Index ETF - 16 ZBK BMO Equal Weight US Banks Index ETF 71 PFH/F PowerShares Fundamental High Yield Corporate Bond Index ETF - 15 RPF RBC Canadian Preferred Share ETF 61 PFH PowerShares Fundamental High Yield Corporate Bond Index ETF - 15 VCN Vanguard FTSE Canada All Cap Index ETF 52 HXU BetaPro S&P/TSX 60 2x Daily Bull ETF - 13 ZCS BMO Short Corporate Bond Index ETF 52 XST ishares S&P/TSX Capped Consumer Staples Index ETF - 11 ZWB BMO Covered Call Canadian Banks ETF 48 XMU ishares Edge MSCI Min Vol USA Index ETF - 10 ZCM BMO Mid Corporate Bond Index ETF 48 XIN ishares MSCI EAFE Index ETF (CAD-Hedged) - 10 PSA Purpose High Interest Savings ETF 48 CLF ishares 1-5 Year Laddered Government Bond Index ETF - 9 DXP Dynamic Ishares Active Preferred Shares Etf 46 HAZ Horizons Active Global Dividend ETF - 8 ZFS BMO Short Federal Bond Index ETF 45 ZLC BMO Long Corporate Bond Index ETF - 7 FXM First Asset Morningstar Canada Value Index ETF 42 ZDM BMO MSCI EAFE Hedged to CAD Index ETF

27 SMART BETA FUND FLOWS MONTHLY Smart Beta Fund Flows Were $356.4M in February, 486.7% YoY 27

28 T-12 SMART BETA MOMENTUM Annualized Smart Beta Flows Were $3.1B, 42.7% YoY 28

29 SMART BETA FLOWS BY ASSET CLASS Equity Flows Were Strongest in February 29

30 SMART BETA FLOWS BY GEOGRAPHY Flows To Canada & U.S. Regions Dominated in February 30

31 SMART BETA ETFs BY FUND FLOWS Top 20 ETFs by Inflows Top 20 ETFs by Outflows Ticker ETF Flows ($ Mil.) Ticker ETF Flows ($ Mil.) ZEB BMO S&P/TSX Equal Weight Banks Index ETF 83 ZLH BMO Low Volatility US Equity Hedged to Cad Etf - 42 ZBK BMO Equal Weight US Banks Index ETF 71 PFH/F PowerShares Fundamental High Yield Corporate Bond Index ETF - 15 FXM First Asset Morningstar Canada Value Index ETF 42 PFH PowerShares Fundamental High Yield Corporate Bond Index ETF - 15 ZUB BMO Equal Weight US Banks Hedged to CAD Index ETF 35 XMU ishares Edge MSCI Min Vol USA Index ETF - 10 VDY Vanguard FTSE Canadian High Dividend Yield Index ETF 32 XMV ishares Edge MSCI Min Vol Canada Index ETF - 6 ZRE BMO Equal Weight REITs Index ETF 30 WXM First Asset Morningstar Canada Momentum Index ETF - 5 ZUQ BMO MSCI USA High Quality Index ETF 22 XDV ishares Canadian Select Dividend Index ETF - 5 PDC PowerShares Canadian Dividend Index ETF 20 CJP ishares Japan Fundamental Index ETF CAD-Hedged - 5 ZEQ BMO MSCI Europe High Quality Hedged To CAD Index ETF 15 ZLI BMO Low Volatility International Equity ETF - 4 XFA ishares Edge MSCI Multifactor USA Index ETF CAD-Hedged 12 CIE ishares International Fundamental Index ETF - 4 CUD ishares US Dividend Growers Index ETF CAD-Hedged 11 ULV PowerShares S&P 500 Low Volatility Index ETF - 3 ZMT BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD 11 ULV/F PowerShares S&P 500 Low Volatility Index ETF - 3 ZDH BMO International Dividend Hedged to CAD ETF 8 EUR First Trust AlphaDEX European Dividend Index ETF CAD-Hedged - 3 CDZ ishares S&P/TSX Canadian Dividend Aristocrats Index ETF 7 XMM ishares Edge MSCI Min Vol Emerging Markets Index ETF - 2 VVL Vanguard Global Value Factor Etf 6 RWC First Asset MSCI Canada Low Risk Weighted ETF - 2 RHI RBC Quant EAFE Dividend Leaders CAD Hedged ETF 6 ZLD BMO Low Volatility International Equity Hedged to Cad Etf - 2 CYH ishares Global Monthly Dividend Index ETF CAD-Hedged 6 ZLE BMO Low Volatilty Emerging Markets Equity ETF - 2 XFS ishares Edge MSCI Multifactor USA Index ETF 5 DXM First Asset Morningstar Canada Dividend Target 30 index ETF - 2 MUS Mackenzie Maximum Diversification US Index Etf 4 TLV PowerShares S&P/TSX Composite Low Volatility Index ETF - 1 XML Ishares Edge Msci Min Vol Eafe Index Etf Cad-Hedged 4 UXM First Asset Morningstar US Dividend Target 50 Index ETF

32 CANADIAN ETF VOLUMES February

33 KEY VOLUMES OBSERVATIONS Annualized ETF Fund Volumes Grew to 18.3B in February, 46.2% YoY ETF Volumes Were 1.4B in February, -3.0% YoY Annualized ETF Volumes Are Showing Strong Momentum Smart Beta Volumes Were 88.6M in February, -2.9% YoY Annualized Smart Beta Volumes Had Good Momentum, 28.0% YoY 33

34 ETF FUND VOLUMES ANNUALIZED Annualized ETF Fund Volumes Grew to 18.3B in February, 46.2% YoY 34

35 ETF VOLUMES MONTHLY ETF Volumes Were 1.4B in February, -3.0% YoY 35

36 T-12 ETF VOLUMES MOMENTUM Annualized ETF Volumes Are Showing Strong Momentum 36

37 ETF VOLUMES BY ASSET CLASS Equity & Commodity Volumes Were Strong in February 37

38 ETF VOLUMES BY GEOGRAPHY Volumes In Canada Dominated in February 38

39 ETF VOLUME BY FUNDS Top 20 ETFs by Volume Top 20 Smart Beta ETFs by Volume Ticker ETF Volume Ticker ETF Volume XIU ishares S&P/TSX 60 Index ETF 201,813,171 ZEB BMO S&P/TSX Equal Weight Banks Index ETF 18,497,665 HOU BetaPro Crude Oil 2x Daily Bul 122,337,184 FXM First Asset Morningstar Canada Value Index ETF 6,115,496 HNU BetaPro Natural Gas 2x Daily B 86,430,727 ZEO BMO S&P/TSX Equal Weight Oil & Gas Index ETF 4,725,429 HOD BetaPro Crude Oil -2x Daily Be 84,398,729 ZUB BMO Equal Weight US Banks Hedged to CAD Index ETF 4,175,816 HGD BetaPro Canadian Gold Miners -2x Daily Bear ETF 69,221,862 ZBK BMO Equal Weight US Banks Index ETF 3,400,748 HND BetaPro Natural Gas -2x Daily 63,175,128 XDV ishares Canadian Select Dividend Index ETF 3,049,859 XEG ishares S&P/TSX Capped Energy Index ETF 56,280,740 ZRE BMO Equal Weight REITs Index ETF 2,760,058 HGU BetaPro Canadian Gold Miners 2x Daily Bull ETF 51,105,365 XTR ishares Diversified Monthly Income ETF 2,519,476 XGD ishares S&P/TSX Global Gold Index ETF 40,410,720 ZMT BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF 2,427,945 ZPR BMO Laddered Preferred Share Index ETF 38,504,343 ZEQ BMO MSCI Europe High Quality Hedged To CAD Index ETF 1,942,339 HVU BetaPro S&P 500 VIX Short-Term Futures 2x Daily Bull ETF 31,768,264 ZLH BMO Low Volatility US Equity Hedged to Cad Etf 1,933,366 XSP ishares Core S&P 500 Index ETF (CAD- Hedged) 19,815,065 CDZ ishares S&P/TSX Canadian Dividend Aristocrats Index ETF 1,787,754 ZEB BMO S&P/TSX Equal Weight Banks Index ETF 18,497,665 XEI ishares Core S&P/TSX Composite High Dividend Index ETF 1,761,657 XFN ishares S&P/TSX Capped Financials Index ETF 18,215,631 ZEF BMO Emerging Markets Bond Hedged to CAD Index ETF 1,527,375 HXT Horizon S&P/TSX 60 Index ETF 17,642,128 PFH/F PowerShares Fundamental High Yield Corporate Bond Index ETF 1,487,409 ZAG BMO Aggregate Bond Index ETF 16,050,138 VDY Vanguard FTSE Canadian High Dividend Yield Index ETF 1,289,470 HPR Horizons Active Preferred Share ETF 15,683,181 XQB ishares Core High Quality Canadian Bond Index ETF 1,260,311 ZHY BMO High Yield US Corporate Bond Hedged to CAD Index ETF 15,527,391 ZUQ BMO MSCI USA High Quality Index ETF 1,111,902 HXD BetaPro S&P/TSX 60-2x Daily 13,884,351 WXM First Asset Morningstar Canada Momentum Index ETF 1,096,523 ZSP BMO S&P 500 Index ETF 13,660,052 CUD ishares US Dividend Growers Index ETF CAD-Hedged 1,088,081 39

40 SMART BETA VOLUMES MONTHLY Smart Beta Volumes Were 88.6M in February, -2.9% YoY 40

41 T-12 SMART BETA MOMENTUM Annualized Smart Beta Volumes Had Good Momentum, 28.0% YoY 41

42 SMART BETA VOLUMES BY ASSET CLASS Equity Volumes Were Strong in February 42

43 SMART BETA VOLUMES BY GEOGRAPHY Volumes To Canada & U.S. Regions Dominated in February 43

44 ABOUT SPHERE INVESTMENTS Our mission is to deliver an innovative and cost effective wealth management platform through ETFs that offer a tailored risk/return experience Sphere Investments was established with a philosophy of providing Canadians with leading investment solutions based on factor-tilted methodologies that are: innovative, diversified, low-cost, taxefficient, transparent and tailored to investor risk/return profiles. Sphere Investments was established in November It offers Sphere FTSE Sustainable Yield products in five major geographies, which are Canada, U.S., Europe, Asia and Emerging Markets. 44

45 ABOUT THE AUTHOR ADAM CLARK Managing Partner Having built a reputation as one of Canada s top market analysts, prior to joining Sphere, Adam was a VP with a major Canadian bank working between Toronto and New York offices. He holds a Chartered Financial Analyst (CFA) designation. 45

46 CONTACT US If you would like to learn more about our products or about how we can help you build your practice, please contact us at: Phone: or visit our website at: Sphere Investment Management Inc. 161 Bay St. Suite 2820 Toronto, ON M5J 2S1 46

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