ETF Round Up: Insights from Étienne Joncas-Bouchard - May, 2026
Markets have continued to show resilience, even as geopolitical developments and inflation concerns remain in focus. Strong earnings results and evolving investor preferences are helping shape the current environment, one where ETFs continue to play a central role in portfolio construction.
In a recent market update, Étienne Joncas‑Bouchard, Director of ETF and Alternative Strategy, highlighted that the current backdrop reflects a mix of supportive fundamentals and ongoing uncertainty. There’s no single dominant driver, rather, a balance between growth, risk and opportunity.
Earnings strength supports market stability
One of the clearest themes has been the strength of corporate earnings. Results have come ahead of expectations, with forecasts pointing to above 20% earnings growth this year, levels not seen in several years.
This has provided a meaningful cushion for equities. Even as uncertainty lingers, strong earnings have helped maintain positive momentum across markets. Economic indicators are also showing some signs of stabilization, suggesting a more constructive backdrop than earlier in the year.
That said, it’s not entirely uniform. Consumer confidence remains somewhat muted, which continues to weigh on certain sectors. Still, the broader picture appears supportive.
ETF flows begin to shift
ETF flows reflect a steady, though slightly shifting, level of investor engagement. April saw positive inflows of approximately $13 billion, lower than earlier months, but still healthy in absolute terms.
On a year-to-date basis, inflows have remained strong, highlighting continued demand for ETF solutions.
What stands out more is how that demand is being allocated. Equity ETFs continue to lead, while fixed income saw notably lower interest during the month. As Étienne noted, fixed income flows were relatively muted, suggesting a pause in demand across more defensive exposures.
AUM |
Mkt. Share (%) |
April 2026 Flow ($M) |
Flow/AUM |
YTD 2026 Flow ($M) |
Flow/Aum |
|
Equlity |
$535,182 |
|
$10,155 |
1.9% |
$47,544 |
8.9% |
Canada |
$171,329 |
21% |
$3,614 |
2.1% |
$13,445 |
7.8% |
United States |
$180,884 |
22% |
$2,201 |
1.2% |
$11,324 |
6.3% |
International / Global |
$182,969 |
22% |
$4,340 |
2.4% |
$22,775 |
12.4% |
Fixed Income |
$194,718 |
24% |
$922 |
0.5% |
$14,268 |
7.3% |
Commodities |
$9,568 |
1% |
$201 |
2.1% |
$1,422 |
14.9% |
Multi-Asset |
$53,232 |
7% |
$1,354 |
2.5% |
$7,055 |
13.3% |
Inverse/Levered |
$16,052 |
2% |
$651 |
4.1% |
$2,743 |
17.1% |
Cryto-Asset |
$6,444 |
1% |
$(5) |
- 0.1% |
$140 |
2.2% |
Total |
$815,196 |
100% |
$13,278 |
1.6% |
$73,172 |
9.0% |
Source: Bloomberg, as at April 30, 2026.
Artificial intelligence growth extends across sectors
The influence of artificial intelligence remains a defining market theme. Investment tied to AI is extending well beyond technology, reaching into areas such as semiconductors, infrastructure, industrials and financials.
This broad reach has helped sustain equity momentum. Strong capital investment and earnings growth linked to AI-related activity continue to reinforce investor interest.
At the same time, markets are processing multiple inputs. Geopolitical risks and inflation pressures remain part of the conversation, creating a dynamic where investors are weighing both risks and opportunities.
Broadening participation across markets
Factor performance may indicate a potential shift in market conditions. Momentum and value have both played a role in recent performance, each driven by different market dynamics.
Momentum continues to reflect strength in growth-oriented areas, particularly those linked to AI. Meanwhile, value has benefited from broader market participation, with more sectors contributing to returns than in previous periods.
As Étienne pointed out, this broadening of market leadership is notable. It signals that performance is not as concentrated as before, an important shift that can influence how portfolios are positioned.
Value strategies may also offer some resilience in environments where inflation remains a consideration, adding another layer of diversification.
Diversification in changing markets
With multiple forces at play, diversification remains an important consideration. Different factors and sectors tend to perform at different times, which can make relying on a single theme less predictable.
Multi-factor approaches, bringing together momentum, value, quality, and low volatility, aim to balance these shifts over time. While individual factors may lead in certain environments, combining them can help provide a more consistent experience.
There’s also a practical benefit. A diversified approach can help manage exposure across varying market conditions, particularly during periods of volatility. As discussed, combining factors can improve overall consistency rather than relying on one specific driver of returns.
Final thoughts
The current market environment is being shaped by strong earnings, structural growth themes, and evolving investor preferences. At the same time, uncertainty hasn’t disappeared, it’s simply part of the broader picture.
For advisors, this reinforces the importance of maintaining a balanced perspective. Diversification, thoughtful allocation, and awareness of shifting trends, particularly around flows and factor leadership, remain relevant.
The opportunity set is still there. But, as the current environment suggests, it’s increasingly about how different elements come together, rather than relying on a single theme.
