News Release
IFIC Releases Research on ETF Resiliency During the COVID-19 Financial Crisis
New report examines ETFs during recent market stress
December 17, 2021 (Toronto) – The Investment Funds Institute of Canada (IFIC) today released ETF Resiliency in the COVID-19 Financial Crisis: A Canadian Perspective. The report provides an analysis of ETF liquidity and functioning during the global pandemic.
“IFIC felt it was important to address concerns voiced by regulators and policymakers about liquidity and market stability risks associated with ETFs in turbulent market conditions in Canada,” said Paul Bourque, President and CEO, IFIC. “We were pleased to find that ETFs proved their resilience during the pandemic and that investors continue to show confidence in these funds.”
Key Findings:
- Designated brokers and market makers facilitated increased levels of creation and redemptions and trading activity.
- ETF trading did not negatively impact underlying markets and, in fact, provided an added layer of liquidity and price discovery.
- Even in the most stressed markets, ETF net redemptions were modest and investors did not halt their purchases.
The report draws on data and analysis provided by National Bank of Canada Financial Markets ETF Research and research commissioned by ETFGI, with data provided by TMX Group and ETF Global.
About IFIC
The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together approximately 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation.
For more information, please contact:
Pira Kumarasamy
Senior Manager, Communications and Public Affairs
pkumarasamy@ific.ca
416-309-2317
