Canada's ETF market is a global outlier and can retain its edge.

Canadian ETFs manage about $739 billion in assets, and discretionary active ETFs represent roughly 32.6% of Canadian ETF AUM.

Canada's exchange-traded fund market has grown into a distinctive, innovation-driven ecosystem. There are more than 1,850 ETFs listed and assets under management are about $739 billion. The market saw record inflows of more than $125 billion last year and trading volumes have outpaced market gains. Canada's regulatory approach to active ETFs and a legacy of product innovation have shaped this development. Key facts: - More than 1,850 ETFs are listed and AUM are approximately $739 billion, according to TD Securities. - Record inflows exceeded $125 billion last year, even amid geopolitical uncertainty and market volatility. - Discretionary active ETFs make up roughly 32.6% of Canadian ETF AUM, versus about 11.2% in the U.S. - Canadian issuers were early adopters of strategies such as covered-call funds and spot crypto ETFs, and "yield enhanced" products attracted over $10.4 billion in inflows last year. - The U.S. ETF market is far larger by AUM (about US$13.9 trillion), but Canada's growth rate and product diversity are notable relative to its size. Summary: Canada's ETF market shows structural differences that have supported growth in active and income-oriented products and helped attract substantial inflows. Those features have made the market a testing ground for strategies that emerged ahead of counterparts elsewhere. Policy and regulatory choices will influence whether this environment continues. Undetermined at this time.