Institutional ETF Surge
Royal Bank of Canada Expands iShares ETF Holdings, Reflecting Institutional Demand for Global Exposure
Anonymous
Key Points
1
Arrowstreet Capital Limited Partnership boosted its stake in iShares MSCI Eurozone ETF (EZU) by an extraordinary 8,264.9% in Q1, bringing its total to 419,834 shares valued at about $26.30 million.
2
Polianta Ltd established a new position in EZU during the first quarter, with a stake worth roughly $14.70 million.
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Royal Bank of Canada increased its stake in iShares S&P 500 Growth ETF (IVW) by 5.8% in Q1, to 3,539,621 shares, after adding 193,529 shares; the position was valued at about $400.6 million.
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RBC raised its stake in iShares Core MSCI EAFE ETF (IEFA) by 0.3% in Q1 to 8,847,558 shares (roughly 0.52% of the ETF), valued at about $800.97 million, after purchasing 28,030 shares.
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Bank of Nova Scotia expanded its position in iShares Global 100 ETF (IOO) by 1,670.5% in Q1 to 35,410 shares, valued at about $4.28 million.
Royal Bank of Canada made major moves in global ETFs during the first quarter, sharply boosting stakes in three iShares funds. The biggest jump came in EZU, the iShares MSCI Eurozone ETF, where RBC grew its position by 113.9% to about 11.86 million shares — worth roughly $743 million, according to Ticker Report.
The moves signal strong institutional appetite for global diversification. RBC also added to its IVW and IEFA positions, while other major players like Arrowstreet Capital and Bank of Nova Scotia made dramatic bets of their own on developed-market ETFs.
RBC's Eurozone Bet More Than Doubles in Q1
RBC's EZU stake surged 113.9% in Q1, reaching approximately 11.86 million shares. That gives RBC about 8.69% of the entire ETF. The $743 million position makes EZU one of RBC's most significant international holdings, according to Ticker Report.
RBC was not alone in piling into EZU. Arrowstreet Capital skyrocketed its own EZU stake by 8,264.9% — an enormous jump — bringing its total to 419,834 shares worth about $26.30 million. A firm called Polianta Ltd also opened a brand-new EZU position worth roughly $14.70 million during the quarter.
RBC Quietly Grows IVW and IEFA Positions Too
Beyond EZU, RBC added 193,529 shares to its iShares S&P 500 Growth ETF (IVW) stake. That lifted its total to 3,539,621 shares — a 5.8% increase — valued at about $400.6 million, per Ticker Report.
In IEFA, the iShares Core MSCI EAFE ETF, RBC added 28,030 shares. Its total reached 8,847,558 shares, worth about $801 million. That represents roughly 0.52% of the entire ETF. The gain was modest at just 0.3%, but the sheer size of the position makes it one of RBC's largest ETF bets.
Bank of Nova Scotia Makes a 1,670% Leap Into IOO
Bank of Nova Scotia also made waves in Q1. It expanded its position in the iShares Global 100 ETF (IOO) by a striking 1,670.5%. Its stake jumped to 35,410 shares, valued at about $4.28 million, according to Ticker Report.
The Global 100 ETF tracks the 100 largest multinational companies. Nova Scotia's surge into IOO mirrors a broader trend. Institutions like Cetera, PNC, and others also added to various ETF positions during Q1, showing wide demand for exposure to large, globally diversified companies.
Institutions Are Betting Big on Developed Markets
Taken together, these moves point to one clear trend: big institutions want more global exposure. EZU covers eurozone stocks. IEFA tracks developed markets outside the US and Canada. IVW focuses on large-cap US growth stocks. All three saw heavy buying in Q1.
RBC also boosted stakes in other ETFs during the quarter, including Vanguard Growth ETF (VUG) — up 2.8% to 2,249,069 shares — and Vanguard FTSE Emerging Markets ETF (VWO), up 2.6%, per Ticker Report. The pattern suggests RBC is systematically broadening its ETF portfolio across both developed and emerging markets.
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