It seems that exchange-traded products (ETPs) are on the rise in the Great White North.
According to BlackRock’s February 2013 ETP Landscape report, released yesterday, February was a better month for ETPs in Canada, compared with January.
Last year, total flows of ETPs in Canada were $12.0 billion. And the February flows of $1.1 billion were slightly above average in a month where overall global industry ETP flows were low.
Developed market equity ETPs continued to show strong momentum in February, gathering $9.6 billion. This included $4.9 billion in non-U.S. exposures.
Sector funds added $3.6 billion, with the real estate sector leading the way with $1.4 billion.
In the fixed income space, short maturity fixed income ETPs—including ultra-short-term, short-term and floating rate—saw inflows of $3.3 billion; all other maturities saw collective outflows of $1.5 billion.
Gold ETP outflows totalled $3.6 billion, reaching a total of $4.8 billion year to date.
“While ETP flows moderated in February, continued demand for equity ETPs pushed year-to-date flows to $47.5 billion, the strongest January-February total on record,” said Dodd Kittsley, global head of ETP Research with BlackRock. “Investors also exhibited patterns of duration rotation, moving toward the short end of the yield curve, where inflows totalled $3.3 billion for the month.”