Canadian ETFs pulled in $19.1B in March as equity demand held firm while cash ETFs saw rare inflows
Canadian ETFs gathered $19.1BN in net new money in March, extending a run of solid demand even as markets struggled through a volatile month, according to TD Securities.
The bank’s weekly ETF report said the March total came despite a sharp pullback in both Canadian and US equities. The S&P/TSX Composite Index fell about 4.9% during the month, while the S&P 500 dropped 5.2%, as geopolitical tensions tied to the Iran conflict rattled markets and pushed oil prices higher.
Even so, ETF investors kept buying.
Equity funds led the way with $10.5BN in inflows, spread across Canadian, US and international mandates. Canadian equity ETFs brought in $3.8BN, ahead of $3.4BN for US equities and $2.7BN for international equities, including emerging markets.
TD Securities said the pattern pointed to renewed appetite for domestic and US exposure despite weak market performance. Large-cap and broad-market strategies drew the strongest interest, with $5.1BN and $4.6BN in inflows, respectively.
Index-based equity ETFs accounted for the bulk of that activity, attracting $8.1BN in March. The iShares Core S&P 500 Index ETF (XUS) posted the largest inflows at $882MM, followed by the iShares Core S&P/TSX Capped Composite Index ETF (XIC) at $726MM. On the other side, the Global X S&P 500 Index Corporate Class ETF (HXS) recorded the largest outflows at $473MM.
Active equity ETFs also remained in favour, pulling in $2.4BN over the month. TD said the Manulife Smart International Dividend ETF (IDIV/B) led that category with $212MM in inflows, followed by the TD Q Canadian Dividend ETF (TQCD) at $201MM.
One of the more notable themes in the report was the continued strength of covered call ETFs. Those products brought in $1.1BN in March, marking their second-biggest monthly intake after January 2026’s $1.4BN. TD linked that momentum to a lower-rate backdrop and muted equity returns, conditions that have helped sustain demand for income-oriented strategies.
The Harvest Diversified High Income Shares ETF (HHIS) topped covered call inflows at $127MM, while the Hamilton Utilities Yield Maximizer ETF (UMAX) added $93MM. Single-stock covered call ETFs also stayed popular, taking in a combined $336MM.
Fixed income ETFs, including money market and cash products, added $4.8BN in March. Aggregate bond strategies did most of the heavy lifting, but TD also highlighted a turnaround in cash ETFs, which posted $269MM in inflows for their first positive month since April 2025.
The High Interest Savings Account Fund (HISA) led cash ETF inflows at $108MM, narrowly ahead of the Purpose High Interest Savings Fund (PSA) at $105MM. Traditional money market ETFs brought in another $556MM, with the Global X 0-3 Month T-Bill ETF (CBIL) adding $362MM.
Excluding cash and money market products, fixed income ETFs drew $4.0BN, led by aggregate bond and investment-grade corporate bond funds. The Global X Canadian Select Universe Bond Index Corporate Class ETF (HBB) posted the largest inflows at $1.2BN.
Asset allocation ETFs also had another strong month, taking in $3.5BN as investors continued to favour all-in-one portfolio solutions. The iShares Core Equity ETF Portfolio (XEQT) led the category with $988MM in inflows, followed by Vanguard All-Equity ETF Portfolio (VEQT) at $626MM and Fidelity All-in-One Balanced ETF (FBAL) at $463MM.
Alternative strategies attracted $141MM, while crypto ETF flows were subdued. TD said Canadian-listed crypto ETFs saw just $2MM in net inflows overall, with Bitcoin funds drawing $54MM and Solana ETFs shedding $47MM.
In its summary, TD said March’s flow picture showed investors tilting toward resilience as geopolitical risks and macro uncertainty intensified. While equities still drew the most money, the return of inflows into cash and fixed income suggested that many investors were also looking for ballast rather than chasing upside alone.
