With $7.4 billion in inflows gathered in August, Canadian ETFs are one step closer to breaking the previous total annual inflow record, according to a research report from National Bank Financial Inc.
Year-to-date inflows reached $73 billion by the end of the month, nearly on par with the previous annual record of $76 billion, set in 2024.
“Canadian ETFs hauled in a whopping $73 billion in the first eight months of 2025, … with four months still remaining,” the report said.
Equity ETFs registered $3.8 billion in flows in August, but it was still the category’s smallest inflow month this year, the report noted.
On a regional basis, international equity ETFs took in $2.8 billion and U.S. equity ETFs pulled in $1.3 billion. Canadian equity ETFs bled $280 million, led by outflows from broad market, financial sector, real estate and energy sector ETFs.
On a thematic basis, utilities ETFs recorded $102 million in inflows, followed by technology ETFs at $55 million, health-care ETFs at $54 million, “other” thematic ETFs at $35 million, and materials ETFs at $31 million.
Meanwhile, financial sector ETFs, real estate ETFs and energy ETFs suffered outflows of $547 million, $136 million and $28 million, respectively.
Fixed-income ETFs gathered $1.7 billion in August.
All fixed-income fund categories reported inflows, except for money-market ETFs, which recorded $106 million in redemptions.
Inflows were concentrated among Canadian aggregate bond, Canadian corporate bond, foreign bond and U.S./North American bond funds. Those categories registered inflows of $635 million, $442 million, $402 million and $219 million, respectively.
Other categories recorded more modest inflows. Canadian government bond funds pulled in $60 million, followed by sub investment-grade bond funds at $44 million, and preferred/convertible bond funds at $17 million.
In terms of maturity, broad/mixed maturity bond funds were most popular among investors, with $1.2 billion in creations.
Multi-asset ETFs received $1 billion in inflows.
Leveraged and inverse ETFs broke their monthly inflow record, with $605 million gathered in August.
“Single-stock ‘lightly levered ETFs,’ a product structure original to the Canadian ETF market, are enjoying strong momentum in terms of launches and (in some cases) inflows too,” the report said.
Crypto-asset ETF inflows slowed down to $103 million in August. Meanwhile, commodities ETFs enjoyed a strong month with $164 million in inflows, led by gold and silver bullion ETFs.
ESG ETFs received $186 million in August, “keeping pace with the average inflow rate so far this year,” the report said.
Record 64 new funds hit the market in August
ETFs also launched at a record rate in the month, with 64 new funds hitting the market.
This includes a slew of single-stock ETFs, which accounted for 30 of the new product launches in August.
The report further noted that only one ETF provider in the top 20 had outflows, while others enjoyed inflows.
Also, the number of ETF issuers is currently sitting at 44, “although this is soon subject to change,” the report said, with Sun Life and Capstone Asset Management Inc. each having filed preliminary prospectuses to launch ETFs in Canada.