Canadian investors boost fund assets to records

Canadian investors poured record amounts into mutual funds and exchange-traded funds in August, pushing both categories to new highs as demand outpaced last year’s totals by a wide margin. Data released by the Securities and Investment Management Association (SIMA) on September 18 shows mutual fund assets reached $2.797 trillion by month’s end, up $26.4 billion (1%) from July. ETF assets climbed to $924.2 billion, a 3.1% jump over the same period and the fifth straight monthly increase.

ETF sales in August hit $15.5 billion, more than double the $7.7 billion recorded in August 2025, though they fell short of July’s $18.3 billion. Equity ETFs led with $10.1 billion in sales, while bond ETFs added $3.9 billion, up from $1.9 billion a year earlier. Year-to-date through August, total ETF net sales reached $137.8 billion, nearly double the $73.7 billion recorded in the same period last year. The strong performance was attributed to investors seeking low-cost, diversified exposure amid uncertain equity outlooks.

The shift toward ETFs reflects a broader trend in how Canadians access markets, with wealth managers noting accelerating inflows since late 2025. Mutual funds also saw solid performance, with $4.7 billion in net sales—down from July’s $6.4 billion but up from $3.2 billion in August 2025. This marked the 16th straight month of positive net sales for the industry, showing a sustained appetite for professionally managed portfolios.

Bond funds led mutual fund inflows at $1.9 billion, a figure well below July’s $4.7 billion. Balanced funds contributed $1.1 billion, while specialty funds added $1.2 billion. Equity funds, which had seen redemptions in July, posted $573 million in net sales. Year-to-date, long-term mutual fund net sales hit $41.1 billion, more than double the $19.9 billion recorded in the first eight months of 2025.

Investors appear to be adjusting portfolios in response to shifting interest-rate expectations, with demand for fixed-income and balanced strategies remaining strong. The data suggests clients are seeking income exposure even as equity markets have stabilized. Equity ETF sales year-to-date hit $92.0 billion, compared to $38.1 billion in the same period last year.

This growth in ETFs has been a defining trend in Canada’s fund distribution environment throughout 2026, with multiple monthly sales records set or approached. SIMA’s data covers approximately 87% of mutual fund assets and 80% of ETF assets, with estimates used to complete industry totals. The association represents firms overseeing roughly $4 trillion in assets for over 20 million investors.