Canadian mutual fund sales rebound further, ETF momentum continues

The resurgence in mutual fund sales was driven by strong demand for bond funds, which brought in $1.7 billion in net sales in June alone, although this down from more than $3 billion in May. Specialty funds also saw solid inflows of $807 million, in line with the previous month, while Balanced funds recorded net sales of $241 million, down from $409 million in May.   

Equity funds, however, recorded net redemptions of $866 million, a sharp rise from the net redemptions of $211 million in May, indicating continued investor caution in equity markets. Money market funds saw a second consecutive month of outflows, shedding $408 million, almost double the net redemptions of May.

Meanwhile, ETFs maintained their upward trajectory. Total ETF assets climbed 3.2% from May to a record $592.2 billion.

Every major ETF asset class except money market funds posted positive sales and totalled $7.2 billion in June, bringing the year-to-date total to $55.8 billion, more than 70% higher than the same period in 2024.

Equity ETFs led net sales with $3.8 billion, similar to May, while bond ETFs contributed nearly $2 billion, but were down from $3.1 billion in May. Balanced ($803 million) and specialty ($711 million) ETFs saw continued net sales. The only drag came from money market ETFs, which posted $123 million in redemptions.