A new market era is here: Mutual funds out - ETFs in

iShares(R) exchange traded funds (ETFs) experience record inflows of
    C$2.1 billion while mutual funds experience record sell-offTORONTO, Nov. 5 /CNW/ - At a time when Canadian mutual funds are
experiencing record outflows, ETFs are seeing record inflows, indicating a
significant shift in investor priorities. For the months of September and
October combined, Barclays Global Investors Canada Limited's (Barclays Canada)
iShares funds had net inflows of C$2.1 billion. In contrast, mutual funds saw
sell-offs of C$4.5 billion in September and C$8.45 billion in October.(1)
    "What we've seen in the past few months is a very different attitude
towards risk," said Heather Pelant, Head of iShares, Barclays Canada. "One
thing that investors and advisors are recognizing is that complexity is not
always a good thing - simplicity is - and that means knowing what you own. We
have always been advocates for better investing and we know that iShares ETFs
are going to withstand the level of scrutiny that all financial products will
be going through."
    Looking more closely at the surge in iShares ETFs over the past two
months, the inflows have been concentrated in XIU (iShares CDN LargeCap 60
Index Fund) with inflows of $1,380 million, XSP (iShares CDN S&P 500 Index
Fund) with inflows of $204 million, and XEG (iShares CDN Energy Sector Index
Fund) with inflows of $130 million. In addition, the family of iShares fixed
income funds combined have had a substantial influx of $125 million. Also of
note is that XIU was the most heavily traded security on the TSX during the
month of October, with $8.3 billion total trading.
    The Canadian market is not alone in seeing a surge of ETF inflows. As of
July, the United States saw ETF inflows at US$41 billion as compared to US
mutual fund outflows of US$47 billion.(2)
    "With all the fear that is characterizing the current market, it's very
important for people to look towards the broader horizon," said Pelant.
"Advisors and investors are recognizing that now is the time for transparency,
diversification and agility. Now is the time for ETFs to be a part of every
investor's portfolio."
    As the pioneer of index investing, Barclays Global Investors offers over
300 ETFs worldwide - known as iShares - that cover a broad spectrum of asset
classes.

    About Barclays Canada

    Barclays Canada is an indirect subsidiary of Barclays PLC and part of
Barclays Global Investors (BGI), a division of Barclays PLC and one of the
largest institutional investment managers in the world and the largest manager
of index funds and exchange traded funds (ETFs). BGI leads the world in ETFs,
with over 300 iShares Funds representing over $400 (USD) billion in assets. As
at December 31, 2007, Barclays Canada managed over $74 billion in Canadian
assets and in other assets for Canadian clients, including over $17 billion in
the TSX-listed iShares Funds. Barclays Canada has offices in Toronto, Montreal
and Vancouver.(1) Investors flee funds in 'month of fear', Shirley Won & Rob Carrick.
        Globe & Mail, November 5, 2008.
    (2) Source: Investment Company Institute, August 2008.

For further information: or to schedule an interview: Contact for Media:
  Lindsay Mattick Davidson, Narrative Advocacy Media, T - [phone], C
-[phone], Email: [e-mail]; All other
inquiries: 1-866-iShares (1-866-474-2731), Email:
[e-mail]