Michael Cooke, the agency’s head of ETFs, stated that volatility can swing buyers in favour of the funds.
“Typically talking, durations of financial uncertainty and volatility are likely to result in elevated ETF adoption as buyers search the advantages that ETFs can present, akin to liquidity, transparency, ease of use and product alternative,” he stated.
The report appears to be like on the developments, each lengthy and quick time period, which are set to influence the Canadian ETF market within the coming months and years.
Central to this can be a shift in sector decisions with cryptocurrencies dropping out to these which have been much less widespread lately akin to infrastructure. Low-cost, market-cap weighted fairness ETFs additionally gained curiosity with $7 billion in web flows.
The slowing financial system is prone to drive gross sales of fixed-income ETFs with rising bond yields making these merchandise extra engaging as entry factors for buyers. Mounted-income ETFs took $19 billion final 12 months.