Canadian investors are putting fresh money to work in familiar places. New industry data show equities and exchange traded funds remain the preferred vehicles, with steady interest in bonds and a growing fascination with gold as prices climb to new highs.
Private equity continues to draw attention from pensions and wealthier households.
At the same time, the domestic crypto market is expected to keep growing at about a 10% annual clip, underscoring how digital assets are maturing alongside core holdings.
In February, ETF net sales reached 9.9 billion Canadian dollars and mutual funds took in 9.0 billion, the strongest monthly showing for mutual funds since early 2022.
Inflows were broad for ETFs, while mutual fund demand tilted to bond, money market and balanced strategies as investors looked to steady cash flows and lower volatility.
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The industry’s trade group said both categories started 2025 well ahead of last year’s pace.
Wall Street’s momentum has kept risk appetite alive, with U.S. benchmarks regularly testing records. That tone bleeds into Canadian portfolios, especially through broad and sector ETFs that give low cost exposure to global stocks.
On the product side, Vanguard Canada confirms ETF payouts each month for income seekers, while liquidity and fees keep ETFs attractive to taxable and registered accounts alike.
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For investors watching the U.S. tech complex, Nasdaq hits new all time high has been a recurring headline that helps explain why equity allocations continue to hold their place across age groups.
Higher starting yields and expectations for policy easing have revived bond ETF and mutual fund demand, a trend that tends to accelerate when rate volatility spills over into funding markets.
Episodes like repo market strains in Canada have reminded investors why short duration and money market funds are useful ballast.
IFIC’s February breakdown shows positive net sales for bond funds and balanced strategies that blend stocks and bonds.
Bullion broke through 4,000 dollars an ounce on October 8 and has logged a drumbeat of record highs this year, propelled by haven demand, a softer dollar and expectations of U.S. rate cuts.
The World Gold Council notes that investment flows have been the key driver, a dynamic Canadian investors know well through bullion ETFs and producers.
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The surge is spawning new products too, such as specialty strategies focused on miners and metals. Earlier this year, Sprott launches an active metals fund to capture that momentum.
Wall Street banks are leaning into the move; Bank of America this week lifted its gold price target to $ 5,000 by 2026 after the metal’s latest breakout.
The call reflects expectations for sustained investment demand as central banks diversify reserves and households hedge macro risks.
Forecasts can miss, but the direction of travel has been supportive for portfolios that keep a slice of precious metals alongside stocks and bonds.
Canadian pensions and institutions continue to favor long dated, cash generative private assets to smooth the ride through economic cycles.
Surveys last year found increased interest in private markets among Canadian institutions, with energy transition and technology among the most targeted themes.
For affluent households that can meet minimums and tolerate illiquidity, private equity and credit funds remain part of the diversification toolkit even as public markets rally.
Crypto sits adjacent to these core choices, despite its volatility, market trackers expect Canada’s crypto revenue to rise at roughly a 10% annual pace over the next several years, a sign of mainstreaming rather than a wholesale shift in asset mix.
In practice, allocations are often small and bracketed by risk controls. Education still matters, from custody to tax.
Articles such as the hidden risk crypto holders highlight why many investors keep digital assets in cold storage and treat them as a satellite position rather than a core holding.
Stocks and ETFs continue to drive long term returns, bonds help manage drawdowns, and gold has reasserted itself as a portfolio hedge. Private strategies can add diversification for those who can lock up capital.
Crypto is growing, but it demands discipline and a clear plan for security and taxes.
The mix will vary by goals and time horizon, yet the center of gravity for Canadian portfolios still looks reassuringly traditional, with room at the edges for new ideas as they prove their staying power.
