Assets held in Canadian exchange-traded funds (ETFs) surpassed $500 billion for the very first time in 2024.
The record amount of capital placed in ETFs came during a year that also broke records for both inflows and new fund launches.
ETF assets under management (AUM) stood at $519 billion at the end of December, according to National Bank of Canada.
The rise in assets under management was due to both market returns and record inflows of $76 billion during the year.
Inflows to Canadian ETFs last year were 45% higher than the previous annual record set back in 2021.
ETF providers enjoyed strong inflows across several fund types in 2024 as markets rallied, with the Toronto Stock Exchange (TSX) hitting record highs.
Overall, ETFs outsold mutual funds for a third consecutive year, according to National Bank.
Mutual funds saw modest capital inflows of $8.3 billion in 2024 as the popularity of actively managed funds continues to wane among investors.
Investment firms have responded to investors’ preference for passively managed ETFs that tend to track the market’s performance by launching a record 224 ETFs last year.
There are now about 1,500 ETFs available to investors in Canada, with about half of those being actively managed funds.
The Vanguard S&P 500 ETF (VOO) that tracks the benchmark U.S. index saw the largest capital inflow in Canada last year at $6.2 billion.
