Based on the Scotia ETF EDGE reports from March 4 to March 28, Canadian ETFs saw an inflow of $5.0 billion, a $1.1 billion decrease from the previous month. The bulk of the inflows in March came from equity with nearly $4.0 billion in net creation in two consecutive months while fixed income and cash ETFs accounted for only $0.68 billion in net inflows and mixed allocation for $0.42 billion.
The US stock market started 2024 with a strong first quarter with the S&P 500 posting a return of 10%, a best first quarter gain in five years. While rising Treasury yields put pressure on equities in 2023, the Federal Reserve remained dovish as they reported good economic data but held off from announcing an initial rate cut. Investor optimism has helped drive up stock valuations. The performance was propelled by mega-cap companies like the Magnificent Seven, where tech and growth stocks experienced huge gains.
Net inflows in the commodities…
