However, totals diverge with ETF assets continuing to climb as mutual funds soften
ETF inflows accelerated to a record pace in December, while mutual fund sales remained positive but eased from the prior month as Canada’s investment fund industry closed out 2025.
New data from the Securities and Investment Management Association (SIMA) shows ETF net sales reached $16.9 billion in December, up from $12.9 billion in November and the highest monthly total on record. Mutual fund net sales were $1.9 billion, down from $5.4 billion the previous month but extending an eight-month streak of positive inflows.
ETF flows led by equities
Equity ETFs recorded $9.7 billion in net sales in December, increasing from $6.8 billion in November. Bond ETFs saw $3.5 billion in inflows, slightly above $3.2 billion the prior month. Balanced ETFs attracted $1.4 billion (up from $1.2 billion), while specialty ETFs added $1.2 billion (up from $988 million). Money market ETFs recorded $1.2 billion in inflows, up from $705 million in November.
SIMA noted December capped a record year for ETFs, with annual inflows reaching the highest level on record at almost $126 billion, a sharp increase from 2024’s $75 billion.
ETF assets rose $13 billion or 1.9% over the month to a record $713 billion and recorded their largest annual dollar increase on record during 2025, $195.5 billion over the year with a one-year growth rate of 37.8%.
Mutual fund inflows slow
Bond mutual funds led mutual fund sales again in December, recording $1.4 billion in net inflows, down from $2.9 billion in November. Balanced funds saw $1.1 billion in sales, up from $357 million a month earlier. Specialty funds added $577 million compared with $1.1 billion in November. Money market mutual funds recorded $755 million in inflows, down from $1.8 billion the prior month.
Equity mutual funds continued to see redemptions, with net outflows of $1.9 billion in December, compared with $744 million in November.
Overall mutual fund net inflows more than doubled in 2025 to $40.5 billion compared to $15 billion in 2024.
Mutual fund assets ended December at $2.53 trillion, down almost $15 billion or 0.6% from November. However, despite the slight dip, mutual fund assets increased by $285.8 billion during 2025, an increase of 12.7% year-over-year.
