The market for exchange-traded funds (ETFs) in Canada is rebounding after experiencing a sharp downturn.
In this year’s first quarter, 50 new ETFs were launched throughout Canada, according to data from National Bank Financial.
News of the ETF launches comes after the Canadian market saw a record number of funds delisted in 2023 amid a sharp downturn in the industry.
Last year, 122 ETFs in Canada were delisted, which was more than triple the previous record high of 39 delistings recorded in 2020 at the depths of the Covid-19 pandemic.
According to National Bank Financial, the record number of delistings in 2023 was primarily due to four ETF issuers – Smartbe, NCM, Evermore and Emerge – exiting the Canadian market.
In the first quarter of 2024, 17 ETFs were delisted in Canada, which is a typical amount for the industry.
While 2023 saw a record number of ETFs delisted, the amount of money invested in the remaining funds across Canada hit a record high of $382 billion, according to the Investment Funds Institute of Canada (IFIC).
Assets held in Canadian ETFs climbed above the $400 billion mark in this year’s first quarter, says IFIC.
