The Globe and Mail reports in its Monday edition that Canadian investors and financial advisers are shifting focus to exchange-traded funds, with ETFs set to outpace mutual funds sales for the first time in a decade. The Globe's Clare O'Hara writes that with $18.7-billion in net sales, ETFs in the first 11 months of 2018 heavily outsold mutual fund investments. Mutual funds produced the lowest sales total in more than a decade, at $7.8-billion. The decline in sales volume for mutual funds was driven by stand-alone funds, says Megan Cobb at Strategic Insight. These funds, which focus on a single asset class such as equities or bonds, saw net redemptions of $16.2-billion in the first 11 months of 2018, the highest record of mutual fund outflows to date. The shift comes after five years of dominant mutual fund sales where some years saw investors put more than three times the amount of money into mutual funds versus ETFs. "While ETF sales are down year over year, mutual funds are being impacted more severely by a number of external factors," Ms. Cobb told The Globe. The Canadian ETF industry has 33 providers managing $156.6-billion in assets. All the major Canadian banks are getting into the market selling in-house ETFs.
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