ETF net sales hit their fourth-highest monthly total on record while mutual funds posted their strongest inflows since February
Canadian investment fund data for July 2026 shows divergence between the two main vehicles as exchange-traded fund assets climbed to a fresh high while mutual fund assets pulled back modestly for the first time in three months.
New figures from the Securities and Investment Management Association (SIMA) reveal that ETF assets reached $896.6 billion at the end of July, up $13.4 billion or 1.5 per cent from June.
Net sales of $18.3 billion made it the fourth-highest monthly ETF sales total on record; a significant milestone that underscores the continued shift of Canadian investors and institutions toward the lower-cost wrapper.
Year-to-date ETF net sales now stand at $122.3 billion, compared with $66.0 billion over the same period in 2025, an increase of roughly 85 per cent.
Mutual funds slip back but inflows remain solid
Mutual fund assets totalled $2.769 trillion at month-end, down $12.5 billion or 0.5 per cent from June's $2.782 trillion.
SIMA noted that market losses were the primary drag, offsetting what were otherwise relatively strong inflows. Net sales of $6.4 billion were the highest since February 2026 and well above the $4.6 billion recorded in July 2025.
Year-to-date mutual fund net sales have reached $34.3 billion, up from $22.3 billion at the same point last year; an improvement of approximately 54 per cent, reflecting the broader recovery in investor sentiment that has characterised 2026.
Bond funds capture the lion's share
The most notable trend within the July data was the dominance of fixed income.
More than 70 per cent of mutual fund inflows ($4.7 billion of the $6.4 billion total) flowed into bond funds, the strongest category for the month. Balanced funds attracted $2.0 billion, while equity funds saw net redemptions of $1.2 billion, a reversal from the $2.7 billion in net sales recorded in June.
On the ETF side, equity products remained the engine of growth, pulling in $12.6 billion in net sales despite some softening from June's $13.1 billion. Bond ETFs added $2.6 billion and balanced ETFs contributed $1.4 billion. Specialty ETFs attracted $1.2 billion.
A record-setting year for ETFs
The July figures cement what is shaping up to be a landmark year for the Canadian ETF industry.
With net sales already at $122.3 billion through the first seven months of 2026, the industry is on pace to comfortably surpass any annual sales record. ETF assets have grown from $713.0 billion at the end of December 2025, a gain of nearly $184 billion in just seven months.
Equity ETFs account for the largest share of assets at $600.4 billion, followed by bond ETFs at $165.5 billion, balanced ETFs at $52.0 billion, and specialty ETFs at $42.1 billion. Money market ETFs added $490 million in net sales during July, bringing their asset base to $36.6 billion.
Context and coverage
SIMA's direct survey data accounts for approximately 87 per cent of total mutual fund industry assets and approximately 80 per cent of total ETF industry assets; the figures are complemented by estimated data to provide comprehensive industry totals.
The July results follow three consecutive months of record mutual fund assets through to June 2026 and confirm that Canadian wealth management flows remain broadly positive even in months where markets weaken.
