Asset-allocation and index ETFs dominate flows while major providers see shifting momentum
Canada’s exchange-traded fund market continued to attract significant investor capital in February, with broad-based equity strategies and diversified portfolio solutions leading the way, according to new data from the Canadian ETF Association (CETFA).
Monthly creations were led by the iShares Core S&P/TSX Capped Composite Index ETF, which brought in $1.72 billion. The iShares 0–5 Year TIPS Bond Index ETF (CAD-hedged) followed with $1.15 billion in inflows, while the iShares Core Equity ETF Portfolio gathered $761 million.
Demand for international exposure remained strong as well. The iShares Core MSCI EAFE IMI Index ETF attracted $589 million during the month, and the Vanguard All-Equity ETF Portfolio added $542 million in new assets.
All-in-one portfolio ETFs also continued to resonate with investors. The Fidelity All-in-One Balanced ETF recorded $538 million in creations, while the firm’s equity portfolio ETF saw $369 million in net inflows.
In total, the top 25 ETFs by net creations accounted for $18.6 billion in February, highlighting continued concentration of investor interest in flagship index-tracking and asset-allocation products.
However, not all strategies experienced positive momentum. The BMO Equal Weight Banks Index ETF led outflows at just over $1 billion, followed by nearly $1 billion leaving the iShares S&P/TSX 60 Index ETF. The iShares S&P/TSX Global Gold Index ETF also posted notable redemptions of $458 million.
Among providers, BlackRock Canada maintained its leadership position despite a 21.4% decline in monthly flows, while Vanguard Canada recorded a similar drop of 21.2%. Both firms continued to hold a significant lead in overall market share on a year-to-date basis.
Core benchmark funds remained dominant in terms of assets under management. The Vanguard S&P 500 Index ETF held the top spot at $28.3 billion, followed by the BMO S&P 500 Index ETF and the iShares Core S&P/TSX Capped Composite Index ETF.
The February figures underscore a sustained shift toward low-cost index exposure and diversified ETF portfolios as investors continue to prioritise broad market participation and streamlined asset allocation.
