ETF series vs mutual funds: key differences for Canadian investors

New investment options are constantly being developed to help Canadians invest in the stock market more easily and provide more choice. One of these options - exchange-traded fund series (ETF series), introduced in 2013 - offer investors another way to tap into mutual fund strategies. Since then, the number of ETF series available has been steadily growing.

What is an ETF Series?

ETF series have many similarities to other series of a mutual fund, such as Series F. Shares of ETF series can be bought and sold on a stock exchange, just like stocks, in real-time during market hours, making them easily accessible. That means that investors can acquire shares of a mutual fund, but with the structure and characteristics of an exchange-traded fund (ETF). 

Details for the ETF series are disclosed in the same simplified prospectus as the matching mutual fund and in the ETF Facts document.

To learn more about ETFs, read What’s an ETF? Essentials to know

ETF Series invests in the same underlying basket of securities as a mutual fund. They allow investors to gain exposure to multiple companies or assets through a single investment, helping to diversify their portfolios. ETF series frequently have the same holdings and fees as Series F mutual funds.

Type of ETF Series 

In Canada, just like mutual funds, ETF series can be categorized in many ways such as their:

• Investment focus (e.g., equity, bond, or commodity)
• Management style (active or passive).
• Specific index or strategy they track. 

And like mutual funds, some common series types include:

• Broad market
• Equity
• Bond
• Thematic. 

Similar to a mutual fund, the underlying assets in an active ETF Series are managed by financial professionals, saving individual investors time and effort in portfolio management. In Canada, more than a third of ETF series are actively managed. 

Want to learn more about active management? 
Read What are the benefits of active management?

ETF Series in Canada

According to the 2024 SIMA Investment Funds Report, Canadians invested more than $17 billion in ETF Series, nearly four times the 2019 total. The number of ETF Series funds grew from 56 in 2019 to over 200 in 2024.

Canadian ETF Series market overview

Assets in ETF Series of existing Canadian mutual funds ($Ms)

Source: SIMA 2024 Investment Funds Report*¹

The ease of trading and diversification possibilities make ETF series increasingly attractive for Canadian investors. Additionally, the opportunity to access the active expertise of experienced managers with an ETF structure can be appealing to investors who prefer the structural design of ETFs over traditional mutual funds.

Discover how our portfolio managers put active management to work: 
Delivering actively managed institutional portfolio capabilities to Canadian investors

ETF series vs mutual funds: ask your financial advisor

Both ETF series and mutual funds have their pros and cons. Consider having a proactive discussion with a financial advisor about how these may fit into your plan to help you meet your financial goals. 

Here’s a list of considerations that compare the two types of investments:

ETF Series and mutual funds key comparisons