ETFs - Active Evolution & a Framework for Active Cores

研报英文原文证据摘录

ETFs - Active Evolution & a Framework for Active Cores

Canadian Active ETF Landscape

It is increasingly clear that ETFs are no longer defined solely as passive, index-tracking vehicles. Active

ETFs have rapidly evolved from a niche offering into a meaningful segment of the Canadian ETF market,

now accounting for ~29% of total assets (~$283 billion in AUM). Since 2019, active ETFs have seen their

total assets expand by nearly 12-fold, significantly outpacing the ~7x multiplier recorded by traditional

passive ETFs over the same period. This strong asset growth highlights a structural shift in investor

demand, as active strategies are increasingly being used as core portfolio tools rather than niche

allocations.

The pace of product launches further illustrates the fast-growing investor appetite toward active

strategies. In 2023, the number of active ETFs surpassed passive products for the first time in Canada.

Since then, active mandates have consistently dominated product filings, accounting for ~76% of all

new launches. The fast-paced momentum is continuing to be strong in 2026, with Canadian ETF

providers rolling out 173 new active ETFs in the first half of the year, spanning a wide range of

risk/return profiles to help with different portfolio construction goals. (Exhibit 1)

Exhibit 1: Passive vs. Active ETFs

Source: BMO Capital Markets, Bloomberg

Taking a closer look at the actively managed space, ETFs can be broadly grouped into five strategy types:

systematic and quant-based approaches, option overlays, asset allocation portfolios, liquid alternatives,

and pure active funds. While total asset growth in active ETFs has accelerated noticeably over the past

three years, adoption rates varied by strategy. Pure active equity and asset allocation ETFs have