- In the first six months of 2020, ETF inflows in
Canada reached a record$22.4 billion 1 - Fixed income ETFs provide investors liquidity during market sell-off
2020: Reflections to Date
The markets shifted rapidly in response to the COVID-19 pandemic and the resulting fiscal and monetary stimulus packages. Investors used ETFs to navigate this volatility and transform portfolios with an easy-to-use, single ticket solution. Driven mostly by net inflows as the market recovery continues, the Canadian ETF industry began the year at
"The benefits and advantages of ETFs were evident over the last six months, including efficient trading, diversified portfolios, and transparency so that investors knew whether or not they were buying into companies that were driving the recovery," said
Key Trends
Fixed Income: This ETF asset class continued to trade and provide liquidity during the recent downturn in the fixed income markets, particularly corporate bonds.
Equities: Investors sought broad market exposures as they traded into equities at attractive valuations during the sell-off hoping to capture growth during the recovery.
Factor Rotation: The Quality Factor has outperformed, as the stressed market environment has highlighted the resilience of high quality companies with low debt, stable cash flows and high return on equity.
ESG: Investors turned to companies with strong governance during the recent market collapse – demonstrating an increasing awareness of the impact strong corporate governance has on a company's resilience under stress.
"With markets shifting faster and more dramatically than many expected, ETFs have clearly delivered, both by flows and by trading liquidity," said
To view the full report, please click here. For more information on BMO ETFs, visit: www.bmo.com/etfs.
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2BMO Global Asset Management, |
BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc.,
BMO ETFs are managed by BMO Asset Management Inc., which is an investment fund manager and a portfolio manager, and a separate legal entity from
About BMO Exchange Traded Funds (ETFs)
BMO Exchange Traded Funds has been a leading ETF provider in
About
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of $987 billion as of April 30, 2020, and a team of diverse and highly engaged employees, BMO provides a broad range of personal and commercial banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking,
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SOURCE
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