Canadian Investors Flock to Active ETFs and Alternative Funds

Canada's ETF industry is experiencing rapid growth, with over C$100 billion in net new money entering Canada-domiciled ETFs during the first half of 2026. This expansion has led to a broader range of investment options for Canadian investors, including active ETFs, alternative funds, thematic strategies, and global diversification.

U.S. 30-year Treasury auction on August 13 saw a 5.216% yield, emphasizing the importance of long-duration bonds and real yields for global ETF investors. U.S. 30-year real yields are approaching 3%, which could put pressure on long-duration growth valuations while making inflation-linked bonds more attractive.

Global gold-backed ETFs attracted around US$3 billion in July, with holdings increasing by approximately 23 tonnes. North American gold ETF participation remains weaker than European demand, leaving room for potential growth if Canadian and U.S. investors increase their allocations to gold ETFs.