ETF Frenzy in Canada: 1.4 New Funds Launch Every Day Amid FOMO Surge

Canada’s ETF market is experiencing an unprecedented boom. According to a recent TD Securities report, an average of 1.4 new ETFs are launched every trading day in Canada—putting the industry on track to break annual launch records in 2025.

In comparison, the U.S. sees an average of 3.8 ETF launches per trading day. As of August 2025, Canada has already seen 211 new ETFs, while the U.S. launched 570. Last year, totals were 229 and 729 respectively—indicating rapid acceleration.

What’s driving this explosive growth?

The report by Andres Rincon, managing director and head of ETF sales and strategy at TD Securities, points to several key drivers:

📈 Key Trends Behind the ETF Explosion

• Active Strategies Lead the Way
  In 2025, over 60% of new ETFs in Canada and 85% in the U.S. are actively managed. Popular strategies include:

  • Single-stock ETFs

  • Option strategy ETFs

  • Credit-loan obligation (CLO) ETFs

• Crypto Innovation Fuels Launches
  Canada continues to be a pioneer in crypto ETFs, launching the first spot Solana and XRP ETFs in North America.
  2025 also saw 11 new bitcoin ETFs with varying strategies.

• FOMO Among Issuers
  The report suggests a “copycat” phenomenon:

  • 8 AAA CLO ETFs launched in Canada within two months

  • 16 S&P 500 option strategy ETFs launched in the U.S. this year, including 14 “buffer” ETFs

📉 Is This Growth Sustainable?

Despite the enthusiasm, experts are starting to question the sustainability of such rapid expansion.

• Crowded Markets
  Many issuers launch similar products, leading to saturation and fee wars, which particularly hurt smaller ETF providers.

• Limited Market Maker Capacity
  Market makers have finite resources—such as seed capital and balance sheet capacity. As more ETFs are introduced, newer or niche products may struggle to find support.

• Potential Regulatory Pressure
  If ETF share classes are approved, this could further strain the market’s operational capacity.

🧠 AiF Insight

If ETFs can make everyone rich, then whose money is everyone earning? If everyone is winning, then no one is working, and everyone is wealthy. Is that realistic?

At Ai Financial, we remind investors: not all that glitters is gold. The rise in ETF offerings reflects market dynamics, not guaranteed returns. Stay rational, stay selective, and invest with purpose.