Weak markets hit Canada ETF assets in Sept-BlackRock
* ETF assets under management fell 1.8 pct in Q3TORONTO, Oct 12 (Reuters) - Assets managed in exchange
traded funds in Canada dropped by 3 percent to C$39.1 billion
($38.3 billion) in September due to slumping equity markets,
though inflows to the funds were positive, according to a
report released on Wednesday.Canadian ETFs overall had net inflows of C$1.1 billion in
September, said the monthly report from the Canadian ETF arm of
New York-based BlackRock , the world’s largest money
manager.ETFs are investment vehicles that own an array of stocks,
similar to mutual funds, but which have shares that are traded
on public exchanges.For the third quarter, ETF assets in Canada dropped 1.8
percent, largely due to a more than 12 percent slide on the
Toronto Stock Exchange’s main index.Net inflows into Canadian ETFs in the quarter were more
than C$2.5 billion, BlackRock said.A total of fifteen new ETF were introduced in the
three-month period, for a total of 213.Low fees and greater transparency have helped ETFs attract
strong investment inflows in recent years. Unlike mutual fund
shares, which are re-priced once a day, the price of an ETF is
publicly quoted and visible throughout the day.BlackRock’s Canadian iShares business had a market share of
68.4 percent in September, down 0.2 percentage points from its
August report. Its assets under management were C$26.7 billion,
compared with C$27.70 billion a month earlier.Claymore Investments’ market share held steady at 15.8
percent, with C$6.2 billion in ETF assets under management.Horizon ETF assets were at C$3.09 billion, down from C$3.19
billion, and Bank of Montreal’s fell to C$2.69 billion
from C$2.74 billion.Royal Bank of Canada was a new entrant in the Canadian ETF
market in the month, with C$32 million in assets. It joins
recent entries Invesco Trimark’s PowerShares, with C$340
million, up from C$315 million, and XTF Capital eXchange Traded
Funds, with C$50 million, down from C$56 million.Vanguard Group, one of the biggest mutual fund and ETF
managers in the United States, also plans to set up shop in
Canada.
