Investors are decamping Canadian banks ahead of earnings season, with six straight weeks of outflows from the largest exchange-traded fund tracking the industry. The BMO Equal Weight Banks Index ETF saw a record $263 million leave the fund between April 2 and May 11, according to data compiled by Bloomberg. Investors piled into Canadian banks through 2016 and 2017 in anticipation of rising interest rates, which can boost margins on loans. Investors piled into Canadian banks through 2016 and 2017 in anticipation of rising interest rates, which can boost margins on loans. Canadian bank stocks are little changed this year, according to the S&P/TSX Composite Commercial Banks index, versus a 2.8-per-cent gain for KBW Bank Index of U.S. banks.

Source: thestar May 22, 2018 18:45 UTC