Skip to main content

Equity ETFs suffered a rare month of outflows in the month of July, while the ETF market as a whole rebounded from June with over $1.6 billion of net inflows. The outflows from equities were dominated by the broad market Canadian equity category. iShares S&P/TSX 60 Index ETF (XIU-T), the largest ETF in Canada by assets under management, faced the largest single outflow with over $800 million withdrawn. Sector-specific equities also had net outflows during the month, led primarily by the energy sector. Energy ETFs shed $158 million in assets during July, its first month of outflows in 2022.

The majority of new assets were committed to fixed income ETFs, with long-term government bonds and cash alternatives leading the pack. TD Canadian Long Term Federal Bond ETF (TCLB-T) had the largest single ETF inflow for the month, while three of the top five largest single inflows belonged to cash alternative ETFs. Both sub-investment grade and preferred share ETFs continued to suffer outflows. As pointed out by National Bank Financial Markets, the sub-investment grade and preferred share categories have shed close to $1 billion in assets year to date – a sign that fixed income investors have a lower appetite for risk during these volatile market conditions.

ESG ETFs continued to gather new assets in July, with $259 billion in positive net flows across all asset classes. The fixed income ESG category, which has added several new launches in the past year, represented over 70% of the new money.

Cryptocurrency ETFs rebounded after a painful June, with close to $200 million in net flows during the month of July. Year to date, the asset class has achieved positive net flows, with $256 million in new money added, despite extreme volatility in cryptocurrency markets throughout the first half of 2022. Purpose Bitcoin ETF (BTCC-T) and Purpose Ether ETF (ETHH-T) accounted for the majority of inflows among the crypto-asset category.

It was a quiet month in terms of new ETF launches, with only one new product listed in Canada. Purpose Investments Inc. launched the Black Diamond Impact Core Equity Fund (BDIC-T). The Fund offers diverse exposure across equity securities of companies all around the world that demonstrate a forward-looking sensitivity to Environmental, Social, and Governance factors. The subadvisor for this fund is Black Diamond Asset Management Inc., and the ETF series charges a management fee of 0.95%.

Harvest ETFs terminated two of their thematic equity funds after less than 16 months of trading, Harvest Digital Sports & Entertainment Index ETF (HSPN-T) and Harvest Space Innovation Index ETF (ORBT-T) - proof that certain speculative themes that gathered a lot of investor interest a year ago have begun to fall out of favour.

As previously announced, CIBC Asset Management terminated their suite of Multifactor ETFs during the month of July.


BDIC-TBlack Diamond Impact Core Equity FundEquityGlobal, ESGLow to Medium2022-07-110.95%


HSPN-THarvest Digital Sports & Entertainment Index ETFEquityGlobal, Consumer DiscretionaryHigh7/15/20220.50%
HSPN-U-THarvest Digital Sports & Entertainment Index ETF (USD)EquityGlobal, Consumer DiscretionaryHigh7/15/20220.50%
ORBT-THarvest Space Innovation Index ETFEquityGlobal, TechMedium to High7/15/20220.50%
ORBT-U-THarvest Space Innovation Index ETF (USD)EquityGlobal, TechMedium to High7/15/20220.50%
CMCE-TCIBC Multifactor Canadian Equity ETFEquityCanada, Factor-BasedMedium7/29/20220.30%
CMUE-TCIBC Multifactor U.S. Equity ETFEquityU.S., Factor-BasedMedium7/29/20220.30%
CMUE-F-TCIBC Multifactor U.S. Equity ETF (CAD Hedged)EquityU.S., Factor-BasedMedium7/29/20220.30%

Source: Inovestor

Ben Kleinberg, CFA, is Product Manager at Inovestor