Canada NewsWire
TORONTO, Dec. 11, 2018
TORONTO, Dec. 11, 2018 /CNW/ - WisdomTree Asset Management Canada, Inc. ("WisdomTree Canada") today released its second annual ETF Industry & Market Outlook, which examines the challenges and opportunities for exchange-traded funds (ETFs) in Canada and identifies key trends the firm sees playing out in the year ahead.
Highlights:
This past year, the Canadian ETF industry reached a new record high of $162 billion in assets under management, as 2018 is set to close with more than $15.9 billion in inflows, a year-over-year increase of approximately 10%1. Overall, WisdomTree Canada foresees continued strong asset growth in 2019, expecting a further shift out of mutual funds into ETFs – a trend that will likely continue as the benefits of ETFs become more widely known among investors.
"This year we've seen the continued evolution of the ETF industry, and what stands out the most is the steady erosion of the oligopolistic power among the major providers in Canada," said Jeff Weniger, WisdomTree Asset Allocation Strategist.
The outlook identifies the following key trends that dominated the Canadian ETF industry in 2018:
"The pace of fixed income ETF inflows slowed slightly in 2018, likely a result of this year's multiple interest rate increases announced by the Bank of Canada," said Kevin Flanagan, WisdomTree Senior Fixed Income Strategist. "In broader terms, developed market yields have been on an ascending trajectory, with Canada as no exception. It will be interesting to see where 2019 nets out as investors continue to search for solutions to mitigate potential rate risk."
Looking ahead, WisdomTree Canada believes the following trends will shape 2019
On the subject of ETF choices, Weniger added, "Most of today's Canadian ETF providers had not even entered the market as recently as 2014, leaving investors with a profound lack of product options. The ETF industry's immense growth, as well as the entry of new and independent players, has benefited investors considerably by creating a more diversified investing environment for both private and institutional investors."
To view the outlook, please visit WisdomTree Canada 2019 ETF Industry & Market Outlook.
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe, Japan and Canada (collectively, "WisdomTree"), is an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately US$56.0 billion in assets under management globally.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
Commissions, management fees and expenses all may be associated with investing in WisdomTree ETFs. Please read the relevant prospectus before investing. WisdomTree ETFs are not guaranteed, their values change frequently and past performance may not be repeated. The WisdomTree ETFs listed on the Toronto Stock Exchange are managed by WisdomTree Asset Management Canada, Inc.
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Note: All figures in Canadian dollars unless otherwise noted. |
1 Source: Bloomberg, as of 11/30/18. |
2 Source: Canadian ETF Association (CETFA) |
SOURCE WisdomTree Asset Management Canada, Inc.
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