TD Securities data shows Canadian ETF flows pulled back in August but year-to-date totals remain on pace for a record-breaking year
Canada's exchange-traded fund industry recorded $16.1 billion in net inflows during August 2026, according to TD Securities' latest ETF Strategy report.
It’s a pullback from July's $18.0 billion but still a strong result as total assets under management climbed past $920.8 billion across 2,069 listed products.
Year-to-date through August 28, 2026, Canadian-listed ETFs have gathered $137.9 billion in new money, with equities accounting for the lion's share at $81.2 billion. Fixed income, money market, and cash strategies drew $25.3 billion over the same stretch.
The week ending August 28 alone saw $5.5 billion in inflows, driven largely by equity ETFs at $3.9 billion and fixed income at $1.1 billion.
Canadian equities lead the charge
Despite ongoing trade friction with the United States, Canadian equity markets held firm through the summer. The S&P/TSX Composite Index gained three per cent in August, outpacing the more concentrated S&P/TSX 60 Index, which added 2.2 per cent.
That resilience showed up in fund flows. The iShares Core S&P/TSX Capped Composite Index ETF (XIC) topped all products with $858 million in weekly inflows, while the BMO Equal Weight Banks Index ETF (ZEB) collected $818 million. A High Interest Savings Account fund (HISA/L) rounded out the top three with $428 million.
The most notable rotation of the week came at the expense of the iShares S&P/TSX 60 Index ETF (XIU), which saw $595 million in outflows. TD Securities' analysis described the movement as "a significant rotation within Canadian large-cap index exposures rather than a broad retreat from Canadian equities" — suggesting advisors are repositioning within the domestic equity landscape rather than reducing their exposure to it.
Asset allocation and income products draw steady demand
All-equity asset allocation portfolios continued to resonate with investors, with the iShares Core Equity ETF Portfolio (XEQT) alone pulling in $910 million in August. Across the category, asset allocation ETFs gathered $2.8 billion for the month.
Income-oriented strategies also held ground. Covered call ETFs accumulated $982 million in August inflows. Single-stock yield-enhanced ETFs from Harvest, Purpose, and Ninepoint have gathered $2.7 billion collectively since the start of 2026, pointing to sustained demand for income generation in an uncertain rate environment.
On the fixed income side, aggregate bond ETFs led with $2.1 billion in August flows. The iShares Core Canadian Universe Bond Index ETF (XBB) attracted $631 million of that total.
New launches and filings signal a busy fall pipeline
Product development showed no signs of slowing. CIBC Global Asset Management launched three Avantis CIBC ETFs (trading under the tickers CAKE, CAGR, and CAGX) at a management fee of 0.28 per cent. BMO Asset Management added an Asset-Backed Securities ETF (ZABS) at 0.45 per cent.
On the filing front, 1832 Asset Management submitted plans for Dynamic Systematic ETFs and Scotia asset-allocation ETF portfolios, while Global X filed for PowerStock ETFs designed to deliver 1.33x leveraged exposure. Lysander Funds also filed for the Lysander-Triasima Canadian Equity Fund (LTCE), a 0.6 per cent fee active product.
Market concentration and the fee story
RBC iShares continued to lead the industry across the key measures, capturing $38.8 billion in year-to-date inflows and holding $258.5 billion in total assets under management. Vanguard Canada ranked second by flows at $20.4 billion, while BMO Asset Management placed third at $13.5 billion.
The bulk of 2026 inflows have flowed into low-cost products, with the majority of new money landing in ETFs with management fees below 0.30 per cent. TD Securities projected RBC iShares to generate the largest ETF revenue in the industry for the year.
Indexing strategies account for 66 per cent of all listed ETFs and 46 per cent of total AUM, while discretionary and active approaches represent 34 per cent of both the product count and assets.
What to watch heading into September
The report flagged trade policy as the primary uncertainty for the months ahead, noting that "investors will also be closely monitoring ongoing tariff disputes and trade tensions between Canada and the US."
If negotiations deteriorate, TD Securities anticipates a shift toward diversified broad-market and asset allocation ETFs, as well as defensive, income-focused strategies.
For advisors already recommending asset allocation ETFs as core building blocks for clients, the data suggest that positioning is well-aligned with where new money continues to flow.
With US ETF markets also on a record pace in 2026, the broader appetite for passive and diversified products is a North American story,but the Canadian numbers are doing just fine on their own.
