ETFs Soar to 23% Share of Canadian Fund Assets Amid Regulatory Updates
The Ontario Securities Commission's (OSC) annual report highlights significant changes in the Canadian fund industry. Exchange-traded funds (ETFs) have gained traction, capturing 23% of investment fund assets under management as of March 31, 2026.
This represents a 41% increase from the previous year, with over $125 billion of that growth attributed to net sales and market movement. Conventional mutual funds saw their share slip to 75% from 79% in the same period.
The OSC's report notes the introduction of innovative products, including AAA-rated collateralized loan obligation ETFs, Solana and XRP exchange-traded funds offering direct spot exposure, and Canada's first triple-leveraged index ETFs. These new offerings have contributed to the surge in ETF assets under management.
The OSC also addressed policy updates, completing amendments to modernize continuous disclosure requirements and updating rules for crypto asset funds. The regulator is continuing work on enhanced exchange-traded fund regulation and liquidity-risk/liquidity risk management.