With US President Donald Trump launching a trade war against Canada, investor interest in exchange-traded funds focused on US stocks has fallen significantly. While weekly ETF flow data is volatile, as Trump unveiled tariffs on Canadian goods in March, Canadian investors began pulling money out of US stock ETFs—a significant break from the long-term trend of generally steady inflows.
This comes as US stocks have fallen sharply from recent record highs. Despite the potential for significant damage from Trump’s tariffs, the Canadian stock market outperformed US stocks during the first quarter. As that quarter ended, the Morningstar US Market Index was down more than 5%, while the Morningstar Canada Index was up 1%.
Outflows Hit US Stock ETFs
The shift in sentiment is evidenced by weekly ETF flows this year, marking a reversal from the trend seen in 2024. Last year, investors flocked to high-performing US stocks. The US Market…
