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BlackRock Fund Causes Canada ETF Inflows to Hit Nine-Month Low

  • Industry is still on track for record year of inflows
  • Low volatility ETFs see gains for first time in 14 months
Canadian exchange-traded funds generated net inflows of $1.8 billion in July, a nine-month low, as a BlackRock Inc. bond fund appeared to suffer a large withdrawal by an institutional investor, according to National Bank of Canada.

Canadian exchange-traded funds generated net inflows of $1.8 billion in July, a nine-month low, as a BlackRock Inc. bond fund appeared to suffer a large withdrawal by an institutional investor, according to National Bank of Canada.

Photographer: Jeenah Moon/Bloomberg

Canadian exchange-traded funds generated net inflows of C$2.3 billion ($1.8 billion) in July, a nine-month low, as a BlackRock Inc. bond fund appeared to suffer a large withdrawal by an institutional investor, according to National Bank of Canada.

Fixed-income ETFs saw C$143 million of outflows, primarily because of a C$1 billion outflow from the iShares Global Government Bond fund. The fund gathered significant assets last year after BlackRock cut the fee to 0.2%, “but whatever institutional manager adopted its use might be now looking elsewhere for yield,” National Bank Financial analyst Daniel Straus said in a research note.