Canadian ETF Market Observes Unprecedented Inflows

According to a research report from National Bank Capital Markets (NBCM) Canadian ETFs attracted a record-breaking $22.3 billion in net inflows during January. This figure represents a 32% increase over the previous record set in December 2025 and marks the first time the domestic market has exceeded the $20 billion threshold in a single month.

Equity Demand Shifts Toward Global Diversification

Equity-based products were the primary drivers of this activity, accounting for $14.6 billion of the monthly total. Home-country bias has long been a defining trait of Canadian portfolios. However, recent flows suggest investors are increasingly casting a wider net.

See More: Yufest on Canada’s ETF Growth, Capital Flight, & What Comes Next

International equity ETFs led the way with $7.1 billion in new inflows, outpacing both domestic and U.S. exposures. Canadian equity ETFs followed with $4.0 billion. Meanwhile, U.S. equity products attracted $3.4 billion.

The tilt toward international markets signals a deliberate push for broader global diversification. As valuations, sector concentration, and growth expectations in North America remain top of mind, investors appear to be seeking opportunities in overseas and emerging markets to complement traditional allocations.

Increasing Adoption of Streamlined Portfolios

The trend toward simplified, all-in-one solutions continued to gain momentum. All-equity asset allocation ETFs experienced a significant inflow of $2.3 billion, the highest on record for the category, as investors increasingly use these vehicles for core portfolio construction.

All-in-one ETFs offer global diversification, automatic rebalancing, and cost efficiency in a single ticker. Those features resonate with both self-directed investors and advisors constructing scalable model portfolios.

A New Wave of Innovation

The Canadian ETF industry is on the cusp of a defining moment. With assets rapidly approaching the $750 billion mark, the story is no longer about whether ETFs will reshape investing in Canada. It’s about how far that transformation can go. January alone saw the launch of 23 new ETFs, underscoring how competitive and creative the Canadian marketplace has become.

The latest additions span emerging themes and evolving income solutions, underscoring how issuers are responding to shifting investor priorities. Among the most notable launches were thematic strategies aligned with structural growth trends. Products targeting nuclear energy, such as the First Trust Bloomberg Nuclear Power ETF (RCTR) — reflect renewed interest in power generation and infrastructure tied to the global energy transition. Meanwhile, tokenization-focused strategies like the Global X Tokenization Ecosystem Index ETF (TOKN) aim to capture the expanding digital asset ecosystem and the broader integration of blockchain technology into financial markets.

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