Recent data shows a significant shift in Canadian investment trends as more investors favor exchange-traded funds (ETFs) over mutual funds. Despite a turbulent market due to trade wars, ETF sales have outpaced mutual funds, particularly among retail investors. Experts note that growing frustration with mutual fund performance, higher embedded costs, and greater price sensitivity are encouraging this transition. ETF assets have surged to an all-time high of $518 billion in 2024, marking a dramatic increase over the past decade, showcasing changing investment philosophies in Canada.
People have been disappointed with [mutual fund] performance for a long time, and historically, most people have had more investments in mutual funds than in ETFs.
More people are paying attention to the costs that are embedded in their investments and the ETF structure is generally a lower-cost vehicle than a mutual fund.
ETF assets reached an all-time high of $518 billion in 2024, ballooning by nearly seven times in the last decade.
ETFs have grown at three times the rate of their older cousins in the last five years, signaling a shift in investment strategies.
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