Oh, Canada! Canadian ETF Industry Rockets to $100 Billion Milestone

canada 600X300With over $10 billion in inflows through the first half of this year alone, Canadian ETFs have now crossed the $100 billion mark, as exchange traded funds continued to dominate the global investing landscape in terms of growth.

Four years ago, Canadian ETFs boasted just half of that amount ($50 billion or so). And the meteoric growth is only expected to continue.

Said Mark Raes, BMO Global Asset Management Canada’s head of product:

“I’m surprised with all their benefits, [ETFs are] not more mainstream and accepted now,” he said. “Especially compared to the United States. We have some catching up to do.”

“In Canada, we expect the value traded on ETFs to double over the next few years,” he said. “And now we’re seeing a further wave of institutional interest.”

Canadia is quickly catching up to — and in some cases, surpassing — the amount of assets held in ETFs within many other countries and regions.

Country/Region ETF Assets (USD)
United States $2.3 trillion
Europe $529 billion
Asia-Pacific $123-billion
Canada $100.6 billion

The growth in the global ETF industry is almost unparalleled in the history of finance. More and more investors are pulling money out of traditional mutual funds and plowing it into their ETF equivalents. ETFs are more attractive because of their liquidity and much lower fees.

The iShares MSCI Canada Index ETF (NYSE:EWC) closed on Friday at $25.24 per share, up $0.26 (+1.04%). EWC, which is the largest U.S.-listed ETF that concentrates its holdings on Canadian companies, has gained 17.4% year-to-date.

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