ETF inflows remain robust while total fund assets continue climbing across Canadian market
Canada’s investment fund industry posted another month of growth in February, with both mutual funds and exchange-traded funds recording higher assets and solid net inflows.
New data from the Securities and Investment Management Association (SIMA) shows mutual fund assets rose to $2.641 trillion by the end of February, increasing by $76.5 billion or 3.0% from the previous month. Net mutual fund sales reached $10.5 billion during the period.
ETF assets also advanced, climbing to $781.9 billion — up $38.0 billion or 5.1% compared with January — while ETFs generated $18.9 billion in net new sales.
The latest figures extend a recent upward trend for the sector. Mutual fund assets have now increased for two straight months, rising by a combined $111.6 billion over that span. At the same time, both mutual fund and ETF assets set fresh all-time highs after also reaching record levels in January.
Investor demand patterns shifted during the month, with balanced funds emerging as the top-selling mutual fund category. The development marks the first time since February 2022 that balanced mandates have led mutual fund sales, pointing to renewed appetite for diversified portfolios that blend equity and fixed-income exposure.
ETF flows also remained particularly strong. Net sales in February exceeded the combined inflows recorded in January and February of last year, underscoring continued momentum in the ETF market.
Detailed industry data also highlights the breadth of activity across asset classes. Long-term mutual funds generated $10.8 billion in net sales during the month, supported largely by balanced and bond funds, while money market funds experienced modest redemptions. On the ETF side, equity-focused products accounted for the largest share of new investments, contributing significantly to overall inflows.
The February results suggest sustained investor engagement with investment funds, driven by diversified strategies and continued demand for ETF structures as total industry assets continue to rise.
