Core Insights - Gold has increased approximately 95% and silver has surged over 270% in the past year, making them the two largest assets by market value [1] - Recent price movements in gold and silver are influenced by concerns regarding U.S. fiscal sustainability and the Federal Reserve's independence, which historically benefits precious metals [2] Group 1: Market Performance - Silver's monthly gain of around 65% is the largest since January 1864, a period marked by significant monetary system stress, drawing attention from macro traders [3] - Newmont shares are experiencing a decline, raising questions about the reasons behind the drop in NEM stock [1] Group 2: Mining Sector Dynamics - Gold and silver mining companies like NEM, B, AG, and PAAS are leveraged plays on metal prices, with revenues closely tied to these prices while many costs remain fixed [4] - A decline in gold and silver prices disproportionately affects margins, reducing expected cash flow and earnings, which impacts valuations after significant price increases driven by bullish sentiment [4] - Traders may be unwinding leveraged positions, leading to outflows from commodity ETFs and increasing selling pressure on mining stocks compared to the metals themselves [5]

Core Insights - Total ETF assets under management (AUM) reached $713 billion by the end of 2025, reflecting a compound annual growth rate of 23% over the past decade, compared to $90 billion at the end of 2015 [1] - The traded value of ETFs surged to $1.2 trillion in 2025, marking a 47% increase from the previous record set in 2024 [2] ETF Inflows and Performance - Equity ETFs led fund inflows in 2025, gathering $66.5 billion, surpassing the previous record of $44.6 billion from 2024 [3] - International equity funds attracted $33.3 billion of the inflows, while U.S. and Canadian equity funds received $19.7 billion and $13.5 billion, respectively [3] - Fixed-income ETFs saw inflows of $37.3 billion, up from $24.1 billion in 2024 [4] - Inverse/leveraged ETFs achieved $6 billion in creations, a significant increase from $1.7 billion the previous year [5] - Commodity ETFs recorded inflows of $2.3 billion, up from $995 million in 2024 [5] - Multi-asset ETFs had $12.5 billion in creations, increasing from $6 billion a year prior [5] - Crypto-asset ETFs saw a turnaround with $933 million in creations, compared to $1.1 billion in outflows the previous year [5] ETF Market Dynamics - Active ETFs continued to drive new inflows due to ongoing innovation in product strategies [6] - A record 364 new ETFs were launched in 2025, bringing the total number of ETFs in Canada to 1,792, compared to 414 in 2015 [6] - Four new providers entered the ETF market in 2025, increasing the total number of ETF providers to 48, up from nine a decade ago [7] Leading ETF Providers - RBC iShares maintained its position as the top ETF provider by market share at 27% in 2025, followed by BMO Global Asset Management at 21% and Vanguard Investments Canada Inc. at 15% [8] - Global X Investments Canada Inc. ranked fourth with 6% market share, while TD Asset Management moved up to fifth place with 4% [9] December 2025 Highlights - Canadian ETFs achieved net inflows of $16.9 billion in December 2025, setting a new monthly inflow record [10] - Equity ETFs led the inflows with $9.9 billion, while fixed-income ETFs recorded $4.5 billion in inflows [10]

Core Insights - The U.S. ETF market experienced record inflows of nearly $1.5 trillion in 2025, surpassing the previous record of $1.12 trillion in 2024 [1][2] - December 2025 saw a particularly strong performance with $225.3 billion in inflows, setting a new monthly record [2] ETF Market Overview - Total assets under management for U.S.-listed ETFs reached $13.5 trillion [3] - U.S. equity ETFs led inflows with over $650 billion, while international equity ETFs attracted $270 billion, benefiting from strong overseas stock performance [4] - The FTSE Global All Cap ex US Index returned 32%, significantly outperforming the S&P 500's 18% return [4] Economic Factors - A weaker dollar, which declined over 9%, contributed to enhanced returns alongside improved global equity sentiment [5] - U.S. fixed income ETFs saw inflows of $330.6 billion, supported by three rate cuts from the Federal Reserve and solid bond market returns [6] - The Bloomberg U.S. Aggregate Bond Index gained 7.3%, marking its best performance since 2020 [6] Inflows by Asset Class - Commodity ETFs received $56.8 billion, with gold ETFs accounting for $47.6 billion of that total [7] - Currency ETFs attracted $38.7 billion, including $33.5 billion into U.S.-listed spot crypto ETFs [7] - International fixed income ETFs pulled in $100.5 billion, while alternatives ETFs gathered $25 billion [7] Issuer Performance - Vanguard led the issuer rankings with $420.8 billion in inflows, followed by iShares with $373 billion [8] - Other notable issuers included SPDR ($86.1 billion), Invesco ($69.9 billion), JPMorgan ($69.4 billion), and Capital Group ($47.2 billion) [8] - Direxion experienced the largest outflows at $11 billion, with Pacer and Grayscale also seeing significant losses [8]

Core Insights - The ETF industry experienced significant growth in 2025, with nearly 800 new ETFs launched in the first three quarters, surpassing the total of 746 in 2024, indicating a robust expansion in the market [2] - Global ETF flows reached over $1.4 trillion this year, with US trading volumes nearing $60 trillion, highlighting the increasing popularity and utilization of ETFs among investors [2] Industry Trends - ETFs are evolving from mere portfolio building blocks to tools for managing taxes, hedging against inflation, and reducing risk, reflecting a shift in their application within investment strategies [3] - Buffered and defined outcome ETFs are expected to gain traction, particularly among pre-retirees and cautious investors, as they offer downside protection while providing better upside potential compared to cash or fixed income [4] Client Concerns - Inflation concerns are prompting advisors to incorporate ETF-based hedges such as gold, TIPS, and commodities into client portfolios, with gold serving as both crisis insurance and an inflation hedge [5] - Advisors are advised to conduct thorough due diligence on new ETF products, particularly those with complex structures, to ensure clients have realistic expectations regarding their performance and protective features [4]

Market Overview - The S&P 500 has increased approximately 18% year-over-year, indicating significant portfolio gains for many investors [1] - Concerns exist regarding market valuation, as rising stock prices may not be supported by corresponding profit growth, suggesting potential market vulnerability [1] Economic Conditions - Inflation remains high, with the Consumer Price Index rising 3% year-over-year as of September [2] - The U.S. unemployment rate, while historically low, is higher than it was two years ago, contributing to economic instability [2] Investment Opportunities - Investors are encouraged to focus on sectors that can provide solid growth and stability amid economic uncertainty [2] - The metals sector is highlighted as promising, driven by demand from AI and the clean energy revolution, particularly for copper and lithium [3] - Metals are considered tangible assets with inherent value due to limited supply, although they are subject to risks such as price fluctuations from tariffs and supply chain issues [3] Infrastructure and Investment Strategies - General infrastructure relies heavily on metals, making this sector a potential avenue for stable long-term growth [4] - Investment options in metals include purchasing shares of commodity ETFs or stocks of refinery and mining companies [4] - Due diligence is essential when investing in individual company stocks, focusing on balance sheets and business stability [5]

Investment Rating - The report indicates a negative sentiment towards the market, with institutional clients being the largest net sellers of equities, particularly in the Technology and Financial sectors [1][10][20]. Core Insights - Institutional and hedge fund clients led the selling activity, with significant outflows from Technology and Financials, while retail clients showed a tendency to buy [1][10][20]. - The report highlights that the rolling four-week average net flows for Financials are more than two standard deviations below the historical average, indicating a significant decline in interest [3][10]. - Consumer Staples, Real Estate, and Materials sectors saw the largest inflows, contrasting with the outflows in Technology and Financials [10][17]. Summary by Relevant Sections Client Flows - Institutional clients were the biggest net sellers, with cumulative flows showing a significant negative trend since 2008 [6][8]. - Retail clients were net buyers for the second consecutive week, indicating a divergence in behavior compared to institutional clients [10][20]. Sector Performance - Outflows were observed in six of the eleven sectors, with Technology and Financials leading the declines [10][17]. - Consumer Staples experienced the largest inflows, followed by Real Estate and Materials, which have shown persistent buying trends since July [10][17]. ETF and Stock Trends - Clients favored equity ETFs over individual stocks, with a preference for Value over Growth styles for five consecutive weeks [10][12]. - The report noted record inflows into Commodity ETFs, driven by a rally in precious metals [10][12]. Size Segmentation - Large and small/micro-cap stocks faced outflows, while mid-cap stocks saw inflows, indicating a shift in client preferences [10][25].

Investment Rating - The report indicates a positive investment sentiment with a focus on buying the dip in US equities, particularly in single stocks, which saw significant inflows [9][18]. Core Insights - Institutional and retail clients were net buyers of US equities, with a notable $4.1 billion inflow into single stocks, marking the fifth highest weekly inflow since 2008 [9][18]. - The report highlights a shift back to large-cap stocks, with inflows observed across all market cap sizes, particularly in Communication Services and Health Care sectors [9][18]. - Hedge funds continued to sell US equities for the fifth consecutive week, contrasting with the buying behavior of institutional and retail clients [9][18]. Summary by Sections Client Flows - Institutional clients led the buying activity, marking the largest weekly inflow since November 2022, while retail clients also participated after a period of selling [9][18]. - Hedge funds were the largest net sellers, with cumulative flows showing a significant outflow trend [5][22]. Sector Performance - Inflows were recorded across all 11 sectors, with Communication Services and Health Care leading the way, alongside notable inflows in the Energy sector [9][18]. - The report notes that clients sold equity ETFs for a second week, with outflows primarily from Tech and Materials sectors, while defensive sectors like Health Care and Real Estate saw inflows [9][18]. Size Segmentation - All market cap segments (large, mid, small) experienced inflows, with small caps showing resilience with inflows in five of the last seven weeks [9][18]. - The report indicates a preference for small-cap and value ETFs, contrasting with the outflows from large and mid-cap ETFs [9][18]. Corporate Buybacks - Corporate buybacks have slowed but are expected to pick up during the earnings season, with a focus on Tech and Financials dominating the buyback activity over the last three months [9][18].