Stats reflect rebound as 2026 got underway for the Canadian investment fund industry
Canada’s investment fund industry began 2026 with a strong reset, as ETFs posted record monthly inflows and mutual fund sales rebounded sharply from late-year softness, according to the latest data from the Securities and Investment Management Association (SIMA).
ETF net sales climbed to $20.8 billion in January, surpassing the previous record of $16.9 billion set just one month earlier, while mutual funds recorded $5.7 billion in net inflows — the strongest monthly result since February 2025.
Both segments of the industry also achieved new milestones in total assets.
Mutual fund assets reached $2.6 trillion at the end of January, rising by $35 billion, or 1.4%, from December levels after a late-2025 decline, while ETF assets climbed even faster, increasing by $30.8 billion month-over-month to $743.8 billion, a 4.3% gain.
The increases marked fresh record highs for both categories, highlighting continued momentum carried over from a strong 2025 for Canadian investment funds.
Mutual fund sales rebound
January’s mutual fund inflows represented a notable improvement compared with December’s $1.9 billion in sales, when assets had slipped modestly amid market weakness.
Long-term funds drove the turnaround, generating $6.5 billion in net sales, led primarily by bond strategies, which attracted $4.2 billion, nearly triple December’s $1.4 billion. Balanced funds added $1.5 billion, improving on December’s $1.1 billion, while specialty funds gathered $1.4 billion, more than double the previous month’s intake.
Equity mutual funds were a weak spot, posting $588 million in net redemptions, though this marked a significant improvement from December’s nearly $2 billion in outflows. Money market funds also posted net redemptions (of $742 million) after attracting inflows of $755 million the month before.
Overall mutual fund inflows also strengthened year-over-year. January’s $5.7 billion total compared with $3.1 billion recorded in January 2025, underscoring improving investor sentiment entering the new year.
ETFs extend record-setting momentum
ETFs continued to dominate industry flows with January’s $20.8 billion in net sales exceeding December’s record $16.9 billion, reinforcing the accelerating shift toward exchange-traded products among both retail and institutional investors.
Equity ETFs once again captured the bulk of investor demand, attracting $13.3 billion in inflows, up sharply from $9.7 billion the month prior and nearly triple the $4.8 billion recorded a year earlier.
Fixed-income ETFs also remained popular, generating $4.0 billion in inflows, compared with $3.5 billion in December and $1.7 billion in January 2025. Balanced ETFs gathered $1.6 billion (up from $1.4 billion in December) while specialty ETFs brought in just shy of $2 billion (up from $1.2 billion in December) with both posting solid gains compared with year-earlier figures ($745 million and $871 million respectively).
Money market ETFs were the only category to see net redemptions, losing $88 million following strong inflows late in 2025 - $1.2 billion in December.
Total ETF inflows more than doubled year-over-year, rising from $9.0 billion in January 2025, highlighting the continued rapid expansion of the ETF market in Canada.
Asset growth driven by equity dominance
Asset allocation trends also reinforced the industry’s evolving structure.
Balanced funds remained the largest mutual fund category, with assets reaching $1.11 trillion, followed closely by equity funds at just over $1 trillion. Bond mutual funds held $328.3 billion, while specialty funds totalled $55.6 billion.
On the ETF side, equity strategies continued to dominate, accounting for $478.3 billion in assets, far exceeding bonds at $150.9 billion and balanced ETFs at $40.5 billion. ETF money market assets stood at $35.1 billion at month-end.
Across both vehicles, long-term funds drove nearly all asset growth, reflecting sustained investor preference for diversified and income-oriented exposure amid evolving market conditions.
January’s results followed a year in which ETFs experienced record annual inflows and mutual fund sales recovered significantly after weaker prior periods.
The strong opening month suggests that investors entered 2026 continuing to allocate capital toward diversified portfolios and fixed-income strategies while maintaining a clear preference for the liquidity and flexibility offered by ETFs.
With both mutual fund and ETF assets now sitting at historic highs, the Canadian investment fund industry appears positioned to carry forward its growth trajectory into the year ahead.
