Investor Economics Insight May 2019

ETF and Mutual Funds: Competing and Collaborating

The days when mutual fund companies viewed ETFs with mistrust are long gone. Most Canadian mid-sized and large fund sponsors have expanded their shelves to include ETFs. At last count, 36 companies offered ETFs in Canada, 16 of which originally populated their shelves with mutual funds and 17 of which now have roots in both the ETF and mutual fund space.

The May Insight lead story looks at the growth of ETFs across various asset classes and compares their metrics to those of stand-alone mutual funds and mutual funds of funds (MFoFs), where demand for active or passive strategies is taking hold and how different distribution channels are embracing ETFs. The Trendlines article explores the rapid expansion of GIC balances throughout the 2019 RRSP season.