Canadian household financial assets hit $7.7tn mid-2025, poised to exceed $8tn for the first time, driven by market gains and inflows. Carlos Cardone of ISS Market Intelligence attributes two-thirds to three-quarters of recent growth to equity valuations, with net new savings under pressure from higher rates, inflation, and debt service post-pandemic.

Retail deposits suffered, with GICs in net redemptions as funds shifted to high-interest savings or elsewhere. Investment funds (ETFs, mutual funds, segregated funds) drew over $150bn in 2025 flows, second only to 2021, with ETFs capturing $120bn, a record. Index trackers took 60%-75%, alongside active strategies, ETF-of-ETFs, and ETF share classes of mutual funds.

Mutual funds added $40bn but face ETF substitution and retirement payouts from long-held assets. ETFs thrive in self-directed channels (online discount and full-service brokerages), where assets topped $1.1tn with 20% growth, ETFs rising over 45%. Broader adoption in robo-advice and banks underscores ETFs replacing direct securities.

Dynamic product innovation and demographic shifts fuel ETF dominance amid positive markets.

Source: Video - Record ETF Flows Reshaping Canada’s Investment Landscape