Sun Life Returns to Canada’s ETF Market With New Fixed-Income Offerings

After a lengthy seven-year hiatus, Sun Life has officially re-entered the Canadian ETF space with three new actively managed offerings. This strategic move aligns with rising demand for fixed-income solutions and alternative credit exposures.

The firm’s investment arm, SLGI Asset Management Inc. (Sun Life Global Investments), unveiled three ETF series on Monday: the Sun Life Core Advantage Credit Private Pool (TSX: SLCA), the Sun Life MFS Global Core Plus Bond Fund (TSX: SLGC), and the Sun Life Crescent Specialty Credit Private Pool (TSX: SLSC). These ETFs are structured as series of existing mutual funds.

Back in 2018, Sun Life had briefly held two ETFs acquired through the Excel Funds deal but opted to shut them down, stating it would reassess the ETF space. Fast-forward to 2025, and Sun Life believes the timing is right to return, with ETF assets in Canada now exceeding $600 billion.

According to Oricia Smith, President of SLGI and SVP of Investment Solutions at Sun Life Canada, the new ETF series were developed in response to direct advisor demand — particularly for access to private and syndicated credit within an ETF structure.

SLCA offers exposure to private credit and is managed by Sun Life Capital Management (Canada) Inc., while SLSC, targeting narrowly syndicated credit, is sub-advised by Crescent Capital Group. Their management fees are 0.43% and 0.7%, respectively.

SLGC, advised by MFS Investment Management, invests globally in both investment-grade and non-investment-grade debt securities and is fully hedged to the Canadian dollar.

Smith notes this is part of a broader commitment to offering strategies through multiple structures — including ETFs, segregated funds, and annuities — based on investor needs. She also hinted at future expansions, saying SLGI may explore both ETF series of mutual funds and standalone ETFs.

Currently, SLGI manages $61 billion in assets, while Sun Life’s total AUM surpasses $1.5 trillion.