Canada’s ETF Industry Nears $1 Trillion: What It Means for Your Portfolio
Exchange-traded funds in Canada are about to pass $1 trillion in net assets. Eli Yufest, executive director of the Canadian ETF Association, discussed the milestone on BNN Bloomberg’s The Open on October 13, 2026. Here is what the numbers show and what it means if you invest.
- Checked October 13, 2026
- By Paul H
- 6 min read
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Canadians are moving their savings into ETFs faster than ever, and low fees are a big part of the reason.
Chapter 1
Where the industry stands
The exact figure depends on how it is measured. TD Securities said Canadian ETFs reached $1 trillion in gross assets under management on June 18, 2026. Net assets, the more common measure, were C$895.6 billion at June 30 according to Morningstar, while reports from SIMA and National Bank put the figure above $880 billion. Morningstar estimated that if the second half of 2026 matched the first, net assets would reach about C$999 billion before any market gains. That is why the industry is described as close to the line rather than over it.
The pace is the bigger story. TD Securities analyst Casey Yang said Canadian ETF net assets have grown about 24% a year since 2016, compared with about 8% a year for mutual funds, which hold about $2.7 trillion. Yang projected ETFs could pass mutual funds around 2035, depending on markets and regulation.
Chapter 2
Where the money went in 2026
72.6%Equity ETFs
Stock ETFs took C$75.3 billion, or 72.6% of first-half inflows. Morningstar says equity ETFs have not had a month of net outflows since April 2023.
C$20.7BAll-in-one asset allocation ETFs
These single-ticket portfolios hold a mix of stock and bond ETFs and rebalance for you. All-equity versions took 57.4% of the money, balanced 22.0% and growth 15.7%.
19.4%Bond ETFs
Fixed income ETFs took 19.4% of inflows. Alternatives took 4.3% and cash-like capital preservation ETFs 0.7%.
44%Active ETFs
Passive index ETFs still took most of the money at 56%, but active strategies drew 44%. Morningstar says active ETFs now hold 35.7% of Canadian ETF assets, up from 2.9% in 2010.
Chapter 3
Why investors are choosing ETFs
ETFs usually cost less than mutual funds, trade like stocks, and can be bought in a TFSA, RRSP or FHSA at most brokers. Many brokers now offer commission-free ETF trades. All-in-one ETFs made it easy to hold a full portfolio with one purchase. More choice is coming too. Yufest has pointed to an expected wave of new ETF products after the expiry of Vanguard’s ETF share class patent. He has also asked Ottawa to remove sales tax on ETF management fees, which would lower costs for investors.
Before you buy an ETF
Simple checks that matter more than the headline number.
- 1. Check the MERA broad index ETF can cost well under 0.25% a year. Many mutual funds charge several times that.
- 2. Know what it holdsRead the fund page for its holdings, country mix and stock and bond split.
- 3. Match the risk to your timelineAn all-equity ETF can fall sharply in a bad year. Money you need soon may suit a balanced or bond option.
- 4. Use your tax-sheltered room firstHold ETFs in a TFSA, RRSP or FHSA where you can.
- 5. Watch trading costsCheck your broker’s commission and the ETF’s bid-ask spread, especially for small, frequent buys.
Frequently asked questions
Has Canada’s ETF industry reached $1 trillion?
By gross assets, TD Securities said it passed $1 trillion on June 18, 2026. By net assets, Morningstar reported C$895.6 billion at June 30, 2026, so the industry was close but had not yet crossed $1 trillion.
How much money went into Canadian ETFs in 2026?
Morningstar reported C$103.7 billion in net inflows in the first half of 2026, nearly double the C$57.8 billion in the first half of 2025.
How many ETFs are there in Canada?
About 2,000 ETFs are listed in Canada, and the number keeps growing.
Are ETFs cheaper than mutual funds?
Usually. Broad index ETFs tend to have much lower management expense ratios than actively managed mutual funds. Always compare the MER and any trading costs.
What is an all-in-one ETF?
An asset allocation ETF holds a mix of stock and bond funds in one ticker and rebalances automatically. They drew C$20.7 billion in the first half of 2026.
- Sources, checked October 13, 2026: BNN Bloomberg, The Open: Canada’s ETF industry set to cross $1 trillion; Morningstar, Canada’s ETF industry nears C$1 trillion after a record first half; Advisor.ca, Canada’s ETF industry inches closer to $1 trillion in net assets; TD Securities, Canada’s ETF industry hits the trillion-dollar club. Photos from Pexels.
Important: This is general information, not financial advice. ETF values go up and down, and past flows do not predict returns. Consider speaking with a licensed advisor about your situation. Gizly is not paid by any fund company for this article. See our affiliate disclosure.
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