Levered, inverse funds boost ETF inflows

Canadian ETF flows were positive in October due to the increased use of levered and inverse funds, finds a report by National Bank Financial’s Pat Chiefalo and research associates Daniel Straus and Ling Zhang.

The report says inflows were up $86 million during the month, but that “equity and fixed income flows were very modestly negative at -$133 million and -$56 million. Levered and inverse funds tilted the scales up by $127 million, or 21%, and $146 million, or 25%.”

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It adds, “International equity and floating rate funds remained in demand, while Canadian equity and rate-sensitive funds were for sale.”

Further, three major providers stood out in October, according to the report: Horizons received $300 million of inflows, while BMO attracted $140 million and Vanguard brought in $100 million.

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