Equity ETFs drive growth as assets surge and new launches accelerate market expansion
Canada’s ETF industry ended 2025 at a new high, with total assets climbing to more than $735 billion as product launches accelerated and equity strategies continued to dominate investor demand.
According to the latest Canadian ETF Association (CETFA) monthly report compiled using ISS MI data, industry assets reached $735.1 billion in December, representing annual growth of 37.5% compared with the previous year. The number of listed ETFs also expanded sharply, rising to 1,472 funds — an increase of 255 products over 12 months.
Equities remained the clear engine of growth across the market. The category accounted for roughly 67.5% of ETF assets, significantly outpacing fixed income allocations at just over 20%. Canadian, US, and global equity exposures collectively represented the largest share of portfolios as investors continued favouring diversified index strategies.
Several benchmark products retained dominant positions among the country’s largest ETFs by assets. US equity exposure remained particularly influential, with S&P 500 index funds ranking among the biggest holdings alongside core Canadian equity trackers and global asset-allocation portfolios.
Asset concentration among providers also remained notable. BlackRock Canada held the largest share of assets at more than $187 billion, followed by BMO Asset Management at approximately $161.6 billion and Vanguard Canada at $104.6 billion. Together, the three firms represented a significant portion of the overall market.
CETFA recently published data showing that ETF adoption in Canada is climbing even as cross-border confusion grows.
Flows during December highlighted continued demand for diversified portfolio ETFs and money market strategies. Broad equity portfolios and short-duration cash alternatives appeared frequently among funds attracting the strongest net creations.
Meanwhile, new product development continued to reshape the competitive landscape. Equity launches accounted for the majority of 2025 inflows among newly introduced ETFs, although commodities, money market products, and multi-asset strategies also recorded notable activity.
The data underscores a market that is expanding rapidly in both size and scope as ETFs continue consolidating their role at the centre of Canadian investment portfolios.
