Latest industry stats for June revealed
Canadian mutual funds and ETFs extended their strong 2025 performance in June, with both asset categories hitting record highs.
New data released by the Securities and Investment Management Association (SIMA) reveals that mutual fund assets rose to $2.3 trillion at the end of June, up $48.7 billion or 2.1% from May. This was the second consecutive monthly rise in assets and marking a new all-time high.
Mutual fund net sales totaled $1.4 billion, marking the fifth month of positive flows this year and pushing year-to-date net sales to $17.1 billion. This represents a dramatic turnaround from the $4 billion in net redemptions during the same period in 2024.
The resurgence in mutual fund sales was driven by strong demand for bond funds, which brought in $1.7 billion in net sales in June alone, although this down from more than $3 billion in May. Specialty funds also saw solid inflows of $807 million, in line with the previous month, while Balanced funds recorded net sales of $241 million, down from $409 million in May.
Equity funds, however, recorded net redemptions of $866 million, a sharp rise from the net redemptions of $211 million in May, indicating continued investor caution in equity markets. Money market funds saw a second consecutive month of outflows, shedding $408 million, almost double the net redemptions of May.
Meanwhile, ETFs maintained their upward trajectory. Total ETF assets climbed 3.2% from May to a record $592.2 billion.
Every major ETF asset class except money market funds posted positive sales and totalled $7.2 billion in June, bringing the year-to-date total to $55.8 billion, more than 70% higher than the same period in 2024.
Equity ETFs led net sales with $3.8 billion, similar to May, while bond ETFs contributed nearly $2 billion, but were down from $3.1 billion in May. Balanced ($803 million) and specialty ($711 million) ETFs saw continued net sales. The only drag came from money market ETFs, which posted $123 million in redemptions.
This sustained momentum underscores investor confidence and appetite for diversified fixed-income and low-cost ETF strategies. As noted in previous industry commentary, the shift in investor behavior reflects a growing preference for products offering stability amid macroeconomic uncertainty.
With mutual funds reversing last year’s redemptions and ETFs setting new records, Canada’s investment fund landscape is showing signs of resilience and adaptability as it enters the second half of 2025.
