Evolution of the ETF Market in Canada: A Unique Global Model and the Structuring Contribution of Desjardins
By Vincent Fitzbay, Managing Director & Chief Operating Officer, Desjardins Global Asset Management
In just over three decades, Canada has evolved from a discreet pioneer to a global reference in the world of exchange‑traded funds (ETFs). This trajectory is explained not only by asset growth, but also by a rare combination of strong regulatory discipline, product innovation, and rapid adoption by advisors and investors.
Within this fully matured ecosystem like other Canadian asset managers, Desjardins now occupies an increasingly structuring role, notably through its leadership in responsible investing and its long‑term‑oriented approach.
A Remarkable Growth Trajectory
The Canadian ETF market has experienced a pronounced acceleration over the past several years. In just a few years, assets have more than doubled, driven by massive adoption both at the institutional level and within the wealth management advisor network. This rapid progression places Canada among the world’s fastest‑growing ETF markets.
Even more important than the size achieved is the consistency of fund flows. The Canadian market has seen sustained net inflows for several consecutive years, including during volatile market conditions. This steadiness reflects a structural confidence in ETFs, now viewed not merely as tactical tools but as central pillars of portfolio construction.
A Pioneer Heritage That Endures
Canada holds a special place in ETF history. It was the first country to launch a modern and active ETF in the early 1990s, well before the concept spread globally. This heritage is more than symbolic; it continues to shape market culture.
Since the early 2020s, the size of the Canadian market has roughly doubled, while the number of available products has increased significantly. This rapid diversification illustrates a market capable of innovating without compromising stability. A balance rarely achieved in other global jurisdictions.
The Canadian Signature: The Rise of Active ETFs
One of the most distinctive features of the Canadian ETF market is the dramatic rise of actively managed ETFs. While in many parts of the world ETFs remain largely associated with passive management, Canada has followed a different path.
In just a few years, flows into active ETFs have more than doubled, now representing a significant portion of annual inflows. While they do not yet constitute most of the portfolio assets, these products account for a disproportionate share of market growth, highlighting a deep shift in investor and advisor preferences in portfolio modeling.
This trend is closely linked to the search for transparent, cost‑effective solutions that meet increased disclosure requirements. The ETF structure offers the ability to combine active management with clarity. A key reason for its rapid adoption in a more demanding regulatory environment.
Agile and Experimental Market
Canada’s ETF market is also distinguished by its strong innovative capacity. The pace of new ETF launches has accelerated sharply, with some years showing creation rates well above historical averages.
Allocation and multi‑asset ETFs have experienced spectacular growth, with assets more than doubling over a short period. These products reflect a fundamental shift: ETFs are no longer used solely for targeted exposures, but they have become complete solutions and foundational components of portfolios.
This agility is also visible in the rise of factor‑based, systematic and thematic strategies, as well as more specialized structures. Canada has thus emerged as a « laboratory market », where innovations are tested, refined, and sometimes exported to other regions.
The Distinctive Contribution of Desjardins
Strong Leadership in Responsible Investing
Within this evolving ecosystem, Desjardins plays a key role, particularly in the development of responsible ETFs.
The institution positioned itself early on by integrating environmental, social and governance (ESG) criteria not merely as filters, but as true management levers.
Its ETF suite aligned with emission-reduction pathways toward carbon neutrality embodies this approach. These products target a gradual and measurable reduction of financed emissions over time, rather than static exclusions. To date, the relevant portfolios already show meaningful reductions compared to their starting point, confirming the credibility of the strategy.
An Offering Aligned with the Maturity of the Canadian Market
Desjardins has also developed an ETF platform aligned with market evolution: a targeted, diversified range that includes fixed income, factor‑based and alternative strategies, often incorporating active or quantitative components.
This approach aligns perfectly with Canadian market dynamics, marked by the rise of active ETFs and by the increasing sophistication of advisor needs.
Rather than multiplying products, Desjardins focuses on durable building blocks designed to withstand market cycles.
A Cooperative DNA Serving Sustainable Finance
Beyond products, Desjardins’ contribution stands out through its alignment of financial performance with societal impact. Responsible investing is an integral part of its business model, emphasizing shareholder engagement, governance discipline and long‑term value creation.
This positioning resonates strongly in the Canadian market, where demand for responsible solutions is particularly high and where ETFs represent a privileged channel to democratize such approaches.
Conclusion: A Canadian Model That Sets an Example
The ETF market in Canada is characterized by rapid but controlled growth, strong innovative capacity and deep adoption by advisory professionals. It is not merely an expanding market, but a fully matured ecosystem capable of influencing global trends.
In this context, Desjardins stands out as a structuring player, helping raise market standards, particularly in responsible investing and active ETF management.
Together, the Canadian market and its key players demonstrate that it is possible to combine innovation, discipline and long‑term vision, a model whose influence now extends well beyond the country’s borders.
Connect with the author
Vincent has spent several years optimizing operations, data, and technological platforms in support of asset management, with a strong interest in the evolution of ETFs and their integration into institutional portfolios.
Last updated in May 2026.