ETF Round Up: Insights from Étienne Joncas-Bouchard - March 18, 2026
Markets have opened the year with no shortage of complexity. Geopolitical tensions, shifting expectations around inflation, and ongoing debate over artificial intelligence continue to frame many portfolio discussions.
In a recent market update, Étienne Joncas-Bouchard, Director of ETF and Alternative Strategy, shared timely insights into ETF flows, evolving equity leadership and how advisors are positioning portfolios in today’s environment. His perspectives highlight a consistent theme: despite uncertainty, investors remain engaged and are using ETFs to express clear allocation views.
ETF flows stay resilient
Étienne Joncas-Bouchard noted that ETF flows remained resilient pointing to three consecutive months of strong industry inflows across December, January, and February. February alone recorded approximately $19.5 billion in net ETF flows, highlighting continued investor participation despite recent market volatility and geopolitical uncertainty.
Equity ETFs accounted for a significant share of that activity, with roughly $12 billion directed to equities during the month. While flows moderated modestly following the end of RRSP season, Etienne emphasized that overall ETF demand remained constructive.
At the sector level, positioning shifted meaningfully. Financial sector ETFs experienced about $1 billion in outflows, while energy sector ETFs attracted approximately $250 million in inflows, reflecting higher oil prices and renewed sensitivity to inflation trends and the interest rate outlook.
International equities keep leading
A notable theme in Etienne’s update was the continued strength of international equity demand. More than half of February’s equity ETF flows were directed to international markets, extending a trend that began early last year and has since accelerated.
He pointed out that international equity demand has been running well ahead of U.S. equity demand in Canada and that international equity ETF assets now exceed Canadian equity ETF assets. This shift underscores how global diversification has become a more prominent part of portfolio construction, not just tactical allocation.
For advisors, this provides a useful lens into client behaviour: investors appear increasingly comfortable allocating capital across regions to broaden opportunity sets.
Factors insights across global markets
Factor performance varied by region, but a few clear patterns emerged. In developed international markets, value played a leading role over the past year, supported by exposure to cyclical areas and more attractive valuations relative to recent U.S. trends.
Momentum also gained traction, particularly as sector and regional leadership broadened. This contrasted with earlier market phases that were more narrowly driven.
Momentum was also discussed as a complementary portfolio tool. While it can feel counterintuitive, its systematic approach allows portfolios to maintain exposure to areas showing sustained strength, often places investors may hesitate to allocate to directly.
In Canada, momentum stood out last year, supported by positioning in areas such as precious metals. The broader takeaway wasn’t about chasing performance, but about how factor strategies can add diversification alongside more traditional approaches.
U.S. value gets a look
In the U.S., attention has turned to market concentration and what happens when leadership begins to broaden. While major indices have been challenged year to date, a wider range of stocks and sectors have begun contributing to returns.
This environment has renewed interest in U.S. value strategies, particularly to diversify away from heavily weighted technology names. Value exposure was also linked to so-called “picks and shovels” tied to AI related capital spending, areas such as industrials, materials, and parts of financials that support infrastructure buildout rather than headline technology.
Inflation sensitivity was another part of the discussion. Value has historically played a role in periods where inflation runs hotter than expected, a point that has become more relevant amid rising energy prices and geopolitical tensions.
Fidelity All-in-One ETFs, explained
Fidelity All-in-One ETFs continue to gain traction as simplified, globally diversified solutions. These portfolios combine equity and fixed income exposures, systematic rebalancing, and defined asset mix targets, offering clarity around portfolio construction.
They are being used in different ways, sometimes as a stand‑alone solution, other times as a core allocation within broader discretionary models. Performance has been an important contributor to growth, alongside their consistency and ease of use.
The inclusion of a small Bitcoin allocation was also addressed. The rationale focused on diversification, balanced carefully against volatility. Allocations are kept modest and rebalanced to avoid outsized risk, while acknowledging that portfolio volatility remains driven primarily by core equity and fixed income exposures.
Emerging markets were discussed as a potential future consideration, though current portfolios reflect a preference for having the right tools in place before adding exposure.
Final thoughts
Across all these themes, the message is measured and practical. Advisors are using ETFs to stay invested, diversify globally, and structure portfolios with greater intention, without relying on any single narrative to carry the outcome.
In an environment where uncertainty remains part of the landscape, these positioning choices point to a steady focus on balance, flexibility and long-term portfolio resilience.
