ETF investing trends – Étienne Joncas Bouchard

Today on the show, we welcome ETF Strategist Étienne Joncas Bouchard as he breaks down the latest ETF trends, including investing trends for the remainder of the year. Étienne gives an overview of the growth of ETFs in Canada. Last year, there was $35 billion in net new assets. As of September of this year, we are at $30 billion for the industry, which is dominated by the fixed incomes, mostly cash alternatives such as HISA ETFs and MM. He notes there has been significant growth in the active side of ETF industry over the past couple of years. Étienne points to a survey done by a discount broker in the US reports that 89% of millennials own ETFs and it’s their vehicle of choice. And more than 60% of baby boomers would use ETFs as their vehicle of choice. Taking a look at US equities, Étienne says in terms of performance it has been pretty good when you look at the benchmark. He says we’ve seen double digit returns so far this year on the S&P500, but a big concern is the lack of breadth. There are fears that this index is too concentrated and is really pulled up by the magnificent seven stocks. Those stocks represent 95.6% of the YTD total return of the index as of October 20th. Étienne also touches on the volatility of the bond markets, factor investing, and all-in-one- ETFs.

Recorded on October 27, 2023.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.