The Canadian Fixed Income ETF market continue to push with record new inflows in the first half of 2024.

National Bank of Canada completed a report that shows gains led by fixed income ETFs in June was $33 billion. This is a boost by $9.7 billion in just June and beats March by 25% increase.

A lot of these inflows came from hedge funds and other portfolio managers. The rest of the market has yet to catch this trend. It seems that these fund managers know something else the rest of the market is unaware of at the moment.

Historically, Fixed Income does well when stocks do poorly. Is this a signal of a market reversal? Only time will tell, but a smart investor will always have some fixed income in their portfolio.

The report continued to show that Canadian aggregate bond and Canadian corporate bond were the leading funds with $2billion inflows each while money market ETFs created $1.3 billion.

Equity ETFs only saw a modest $2.3billion inflow in June and this is down from $1.4 billion in the previous month. International Equities ETFs saw $1.2 Billion inflow.

ETFs holding crypto assets saw a $20million outflow in June, which is not surprising to the rest of the market. It seems to have been a reallocation on funds. The market withdrew from crypto and went to Equities and Fixed Income.

RBC iShares has the top spot for being Canadian’s largest ETF provider with a 24.7% market share, with BMO at23.2%, and Vanguard at 13.8%.