The market’s increasing uncertainty, triggered by the Trump administration’s tariff talks, began to take its toll on investors in March, leading to a surge in volatility. As a result, stocks and the bitcoin industry suffered, while the gold trade experienced a significant upswing. Gold’s Bullish Sentiment
According to Morningstar’s Best-Performing ETFs report, gold ETFs dominated the top 10 list, showcasing the sector’s bullish sentiment. The Blackrock iShares S&P/TSX Global Gold Index ETF (XGD-T) emerged as the top performer for Canadian ETFs, boasting a 36.26% return over the first quarter. The Global X Gold Producer Equity Covered Call ETF (GLCC-T) secured the second spot, with a 3-month return of 35.28%. Passive Management Gains Traction
The success of gold ETFs is attributed to the growing popularity of passive management strategies. As investors become increasingly risk-averse, passive funds are gaining traction, and gold ETFs are leading the charge.
- The BMO Equal Weight Global Gold Index ETF (ZGD-T) from BMO Asset Management took the third spot, with a 34.31% return over the first quarter.
- Harvest ETFs’ Enhanced High Income Shares lineup also saw significant gains, with seven new ETFs launched in March, offering investors exposure to leading U.S. companies.
New ETF Launches
In March, 23 new ETFs were launched in the Canadian market, catering to diverse investor needs and preferences. Some notable additions include:
| ETF Name | Issuer | Product Type |
|---|---|---|
| BMO Target 2027-2029 Canadian Corporate Bond ETFs | BMO Asset Management | Target Maturity Bond ETFs |
| Evolve Levered Bitcoin ETF | Evolve Funds Group Inc. | Levered Bitcoin ETF |
| Starlight North American Equity Fund | Starlight Capital | North American Equity Fund |
Evolve ETFs Expands Its Suite
Evolve Funds Group Inc. made significant strides in March, launching eight new ETFs, including Canada’s first levered bitcoin and ether ETFs. The Evolve Levered Bitcoin ETF (LBIT-T, LBIT.U-T) and Evolve Levered Ether ETF (LETH-T, LETH.U-T) offer investors 1.25x exposure to the daily price movements of bitcoin and ether, respectively. Evolve’s Diversified Portfolio
The new additions to Evolve’s suite are designed to cater to various investor preferences, including:
- The Evolve Enhanced Yield Mid Term Bond Fund (MIDB-T, MIDB.B-T, MIDB.U-T), which targets medium-duration fixed income exposure in North American markets with an added active covered call strategy to increase yield.
- The Evolve Canadian Energy Enhanced Yield Index Fund (OILY-T), which replicates up to 1.25 times multiple of the performance of the Solactive Canada Energy Top 10 Index.
StarLight ETFs Expands Its Offerings
Starlight Capital launched two new funds in March, offering investors targeted exposure to North American and global markets. The Starlight North American Equity Fund (SCNA-NE) provides a balanced approach, investing in both Canadian and U.S. securities, with the flexibility to adjust geographic allocations based on market conditions. J.P. Morgan Expands Its Canadian ETF Lineup
J.P. Morgan Asset Management broadened its Canadian ETF lineup with two actively managed equity funds, offering investors targeted exposure to U.S. equity markets through distinct value and growth strategies. Guardian Capital Launches a New Fund
Guardian Capital LP launched the Guardian i³ Global Dividend Premium Yield Fund (GIDY-T), providing investors with regular dividends through investing in global dividend-paying securities, enhanced by a conservative covered call overlay. Conclusion
March marked an eventful month for the ETF market, with gold ETFs emerging as top performers and new launches catering to diverse investor needs. As investors continue to navigate the increasingly uncertain market landscape, it’s essential to stay informed about the latest developments and trends in the ETF market.
