Canadian ETFs gathered $19 billion in net inflows in February, recording “the second highest monthly tally in history, right after the record-breaking January 2026,” according to a research report from National Bank Capital Markets (NBCM).
Equity ETFs accounted for the bulk of the inflows once again, with $11.7 billion recorded.
On a regional basis, Canada, U.S., broad developed market and global equity ETFs each registered inflows north of $2 billion, the report said. Meanwhile, emerging markets equity ETFs took in $752 million, and regional and country developed market ETFs pulled in $230 million.
“Investors are still seeking diversification outside of North America and into broad developed or emerging markets; this has been a persistent theme since the U.S. trade war broke out in spring 2025, and the aftershocks are still driving record inflows into these regions,” the report said.
On a sectoral basis, technology and energy equity ETFs gathered $216 million and $247 million in net inflows, respectively. Health care, real estate and “other” equity ETFs received modest gains of $31 million, $42 million and $31 million, respectively.
Those gains were offset largely by financial equity ETFs, which recorded $927 million in net redemptions, followed by material equity ETFs, at $261 million. Utilities ETFs recorded $2 million in net outflows for the month.
Fixed-income ETFs received $4.6 billion.
By fixed-income fund type, U.S./North America, Canada aggregate, foreign and Canada corporate bond ETFs were the most popular, taking in $2.6 billion, $2.2 billion, $1.8 billion and $1 billion, respectively.
At the same time, Canada government bond ETFs pulled in $572 million, followed by sub-investment grade bond at $272 million and money-market funds at $66 million. Preferred/convertible bond funds recorded just $1 million in net inflows.
By maturity, broad/mixed bond ETFs were by far the most popular, with $4.8 billion in net inflows registered, followed by real return funds at $1.7 billion, and short-term bond funds at $1.6 billion. Meanwhile, mid-term bond funds took in $426 million, target-maturity bond funds pulled in $175 million, long-term bond funds gathered $82 million and money-market funds received $66 million.
Ultra-short-term bond ETFs suffered $306 million in net outflows.
Multi-asset ETFs pulled in $2.1 billion, while asset-allocation ETF inflows “reached another record at $1.8 billion,” NBCM noted.
Commodities ETFs registered $330 million in inflows.
Inverse/levered ETFs took in $635 million, with $532 million of the inflows going to funds with modest leverage and the remaining $103 million flowing into daily reset funds.
Crypto-asset ETFs recorded $150 million in net inflows.
ESG ETFs received $265 million in February, “with creations spread across several popular equity ESG ETFs,” NBCM said.
February’s inflows were “widespread” among ETF issuers, with all top 20 providers enjoying inflows, it further noted. The largest gains, in percentage terms, went to TD Asset Management, Fidelity Investments, Desjardins and Manulife.
There were also 37 new funds launched in the month, with issuers “leaning heavily into factor and outcome-oriented exposures.”
Canada’s ETF industry now boasts $782 billion in total assets under management, as of the end of February.