Barclays Global Investors Canada Limited (iShares)

Barclays Global Investors Canada Limited (iShares)

October 05, 2009 13:08 ET

Canadians Embrace ETFs as Worldwide Popularity Hits New All-Time High

Latest data from Barclays Global Investors demonstrates global gains in ETF asset growth

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2009) - Investors in Canada are contributing substantially to a worldwide trend that has seen global exchange traded fund (ETF) assets hit an all time high according to the latest report from Barclays Global Investors (BGI), a division of Barclays PLC.

"There has been a visible shift in the investing habits of Canadians over the past six months as net inflows have increased and investors join a global trend," said Deborah Fuhr, Global Head of ETF Research & Implementation Strategy at BGI. "Clearly, in Canada and elsewhere, ETFs continue to enjoy considerable momentum as an investment vehicle given their ability to offer exposure to such a wide variety of asset classes."

In Canada, the ETF industry has grown by 49% to date in 2009, from C$19.4 billion to C$28.8 billion, at the end of September 2009. Fixed income ETFs experienced the highest growth during that period, with C$2.4 billion in net new assets, and asset under management (AUM) growth of 100%. Other areas of significant growth were income-oriented equities (such as REITs) with C$521 million in net new assets, and international equities with C$517 million in net new assets. The Canadian ETF industry has 97 ETFs with 119 listings from four providers at the end of September 2009.

This growth complements a worldwide trend as global ETF assets hit an all time high of US$891 billion at the end of August 2009 which is 3.9% above the previous all time high of US$858 billion set in July 2009, and 10.6% above the high set in April 2008. The global ETF industry had 1,773 ETFs with 3,137 listings, assets of US$891 billion from 95 providers on 41 exchanges at the end of August 2009. Year-to-date (YTD) assets have risen by 25.3% which is more than the 18.0% rise in the MSCI World Index in US dollar terms.

Contrasting this to latest data from Strategic Insight, net inflows to mutual funds (excluding ETFs) were US$5.3 billion, while net sales of ETFs were US$49.0 billion during the first six months of 2009.

"This data underscores the extent to which iShares ETFs offer Canadian investors a superior range of choices available to preserve and grow their wealth through all market conditions," said Heather Pelant, Head of iShares, BGI Canada. "Today's investors are demanding better investment vehicles with solid upside but which remain cost efficient and transparent. iShares ETFs stand out as the proven market leader when measured on the basis of all these attributes."

With 80.4% of the total ETF assets under management in Canada, iShares, a division of BGI, remains the undisputed leader as it celebrated its tenth anniversary of providing pioneering leadership in the ETF industry with the iShares CDN LargeCap 60 Index Fund (XIU) on September 28th. In the nine months ending September 2009, net redemptions of mutual funds (excluding ETFs) in Canada were C$800 million, according to the Investment Funds Institute of Canada (IFIC), compared to C$3.0 billion in net sales of iShares ETFs, and C$5.9 billion in total net sales of ETFs over the same period.

Canada ETF Assets:


Investment Exposure Category
Assets Under Management
as at 30-Sept-09
Net New Assets
Nine months ending
30-Sept-09
Core Canadian Equities12,145520
Fixed Income5,0602,408
Equity Sectors3,979233
International Equities2,689517
Income-Oriented Equities1,766522
Commodities399375
Balanced45-10
Inverse/Leveraged Products (Total)2,7651,375
 Inverse/Leveraged - Equity1,1855
 Inverse/Leveraged - Commodity1,5551,384
 Inverse/Leveraged - Fixed Income25-14
Total Canadian ETFs28,8475,940
   
(1)All figures are in $C Millions  

Source: Barclays Global Investors Canada Limited and Bloomberg L.P.

ETF providers in Canada ranked by AUMAUM - Aug 2009AUM - Sept 2009
iShares21,57623,206
Horizons Beta Pro2,5322,859
Claymore2,4502,768
BMO ETF1314
   
Grand Total26,57128,847
(1)Figures are in $C Million 

Source: Barclays Global Investors Canada Limited and Bloomberg L.P.

To view Global ETF Asset Growth graph, please visit the following link:

http://media3.marketwire.com/docs/EFTGlobal.pdf

To view Canadian ETF Asset Growth graph, please visit the following link:

http://media3.marketwire.com/docs/EFTCanadian.pdf

Notes for editors:

ETF Landscape – Industry Review is BGI's comprehensive monthly market commentary, which covers Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) across the globe. ETFs are open-end index funds that provide daily portfolio transparency, are listed and traded on exchanges like stocks on a secondary basis as well as utilising a unique creation and redemption process for primary transactions. ETPs are products that have similarities to ETFs in the way they trade and settle but they do not use a mutual fund structure. The use of other structures including grantor trusts, partnerships, notes and commodity pools by ETPs can create different tax and regulatory implications for investors when compared to ETFs which are funds. This publication includes rankings of ETF and ETP providers, ETFs, index providers and exchanges globally, in the United States, Europe, Japan, Asia, Latin America, the Middle East and Africa, as well as by country. This publication is provided for informational and educational purposes only.

About Barclays Global Investors/iShares

Barclays Global Investors (BGI), a division of Barclays PLC, is one of the world's largest asset managers and a leading global provider of investment management products and services. BGI has more than 2,900 institutional clients and US$1.7 trillion of assets under management as of June 30, 2009. BGI transformed the investment industry by creating the first index strategy in 1971 and the first quantitative active strategy in 1979. BGI is the global product leader in exchange traded funds (iShares) with over 380 funds globally across equities, fixed income and commodities, which trade on 16 exchanges worldwide. Globally, the iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and high net worth individuals.

About BGI Canada

BGI Canada is an indirect subsidiary of Barclays PLC and part of BGI, a division of Barclays PLC. As at August 31, 2009, BGI Canada managed over $66 billion in Canadian assets and in other assets for Canadian clients, including over $21 billion in the TSX-listed iShares ETFs. BGI Canada has offices in Toronto and Montreal.

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