Canadians were net buyers of both exchange-traded funds (ETFs) and mutual funds during the month of July, according to the Investment Funds Institute of Canada (IFIC).
ETFs were particularly popular with investors and saw net inflows of $5 billion during the month, with half that amount flowing into funds focused on stocks.
Investments made in mutual funds were at their highest level in two years during July at $5.2 billion. More than half that amount ($3.3 billion) was invested in bond-focused mutual funds.
Most of the investor money allocated to ETFs and mutual funds offered by Canadian banks and investment firms went to “non-domestic funds,” i.e. funds focused on U.S. stock and bonds, said the IFIC.
Year-to-date inflows for all ETFs available in Canada totaled $37.4 billion at the end of July, up 78% from $21 billion recorded during the first seven months of 2023.
In contrast, mutual fund flows have been mostly negative in recent months and years as investors move away from that investment vehicle in favor of low-cost ETFs.