The Canadian ETF industry continued its robust growth in 2025, with assets under management reaching CA$797.9 billion/US$583.2 billion, a 40.5% increase from CA$568 billion/US$394.8 billion in 2024.
Net inflows surged to CA$154 billion/US$110.2 billion, up 72.3% from CA$89.4 billion/US$65 billion the previous year, reflecting strong investor demand. The year also saw significant expansion in fund offerings, with 305 new funds comprising 362 new listings. By the end of 2025, the Canadian ETF market encompassed 1,506 ETFs and 1,808 total listings, underlining the status of the ETF structure as a dynamic and rapidly evolving product offering.
Fund flows in 2025 continued to build on the existing asset base in similar proportions. Equities dominating annual fund flows, followed by fixed income and incremental interest in other asset classes.
Taking a closer look at the fund flows into the equity space, investor preference clearly favors broad market-cap focused ETFs (categorized as size and style ETFs) over more targeted sector or thematic ETFs.
It is interesting to see, given the global trade and macroeconomic headwinds during 2025, investors still favored U.S. equities and the developed market ex-North America.
The Canadian ETF industry is heavily concentrated, with 63% of the assets in the industry being held in three firms. Both BlackRock and Vanguard have dominated the top spots in the U.S. market as well.
Reviewing the data below reinforces Canadian investor preferences for diversification, simplicity, and convenience. ETFs that provide broad exposure found their way to the top spot in asset gathering in 2025 (excluding currency). Several of the ETFs are fund-of-funds, meaning the underlying holdings are other ETFs aiming to provide broad exposure. All-in-one suites of ETFs from Fidelity and Vanguard are resonating, perhaps providing an easy way to maintain strategic, diversified allocations in one product.
As the Canadian ETF industry expands, it offers investors easier access to a broader range of asset classes and investment strategies. This diversity allows investors to potentially participate in global markets and better position their portfolios to manage risks and opportunities arising from geopolitical events and changes in the broader economy. ETFs are proving to be the product of choice for investors to capitalize on economic trends and investment opportunities.
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