ETF growth in Canada pushes assets above $700 billion

Canada's ETF assets topped $700 billion last year, rising nearly 38% year over year, as advisors increasingly use ETFs and active ETF offerings expand.

Canada's exchange-traded fund industry has continued to grow, with assets in Canadian ETFs surpassing $700 billion last year. That represented roughly a 38 per cent increase year over year and places Canada among the faster-growing ETF markets globally. Industry participants and regulators point to greater fee transparency and a shift toward fee-based advisor models as factors behind increased ETF usage. Mackenzie Investments said its ETF platform recently passed $25 billion in assets and noted rising interest in active ETFs and broader diversification options. What we know: - Canadian ETF assets topped $700 billion last year, up nearly 38% year over year. - Advisors are increasingly shifting to fee-based compensation models and using ETFs in portfolio construction. - Active ETFs and alternative strategies are expanding beyond niche status, according to Mackenzie Investments. - Greater regulatory focus on fee transparency, including CRM3, is reported as contributing to ETF adoption. - The article mentions that Mackenzie’s ETF platform surpassed $25 billion and notes some large passive ETF products with multibillion-dollar assets. Summary: The growth in ETF assets is changing how advisors manage portfolios and broadening the mix of passive, active and alternative ETF products available in Canada. Regulatory attention to fee transparency and the move toward fee-based advisor models are reported as drivers of adoption. Undetermined at this time.