Jan 5, 2023
BlackRock Nears Canada ETF Milestone After Tumultuous Year
(Bloomberg) -- Exchange-traded fund providers weathered a turbulent year in Canada, with BlackRock Inc. nearing C$100 billion ($73.7 billion) in assets and Vanguard Group Inc. posting the strongest percentage inflows among the biggest players.
Total ETF inflows were C$36 billion last year, a 32% decline from 2021, as equities and bonds delivered negative returns, National Bank of Canada analyst Daniel Straus said in a report.
The three largest firms ended 2022 with a combined 67% market share — about the same as a year earlier. RBC iShares, an alliance between Royal of Bank of Canada and BlackRock, is the biggest with C$91 billion, followed by Bank of Montreal with C$79 billion and Vanguard at C$41 billion.
Among Canadian firms managing at least C$1 billion in ETFs, Bank of Nova Scotia and Hamilton ETFs saw the biggest inflows as a percentage of assets under management.
Lightly-levered ETFs, a new category, attracted C$1.3 billion in inflows, while crypto-asset funds dwindled to C$1.7 billion in total assets from about C$6 billion a year ago. The decline wasn’t driven by outflows but by “a new ‘crypto winter’ after the fall of FTX and other crypto businesses like Celsius, Luna/Terra and Three Arrows Capital,” the analyst wrote.
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