Canadian ETF trends: Money market craze continues, investors exit energy funds and a new provider hits market

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The latest exchange-traded funds launches and terminations

The iShares ESG Aware MSCI Emerging Markets Index was not the most popular ETF in August, unlike the previous two months, but dropped to the fourth place with an inflow of $0.3-billion. This suggests that investors continue to appreciate the ETF’s investment thesis, but are investing somewhat more conservatively in the strategy.

Despite its robust 7.2 per cent monthly gain, the iShares S&P/TSX Capped Energy Index ETF experienced a significant outflow of $0.5-billion. The positive performance was driven by a substantial uptick in WTI crude oil prices, which surged from US$70.64 at the end of June to US$83.63 at the end of August. The ETF returned a cumulative 263.2 per cent or 53.7 per cent annualized return over the last three years. Investors likely have taken profits after this short-term and 3-year bull run.

 

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