Mackenzie Investments 2026 ETF Outlook: ETFs Playing a New Role in Portfolio Construction

As Canadian ETF assets surpass $714 billion, active strategies and systematic approaches will lead industry evolution

TORONTO, Jan. 20, 2026 /CNW/ - Mackenzie Investments ("Mackenzie") today released its 2026 ETF Outlook (the "Outlook"), highlighting record growth in Canada's exchange-traded fund ("ETF") industry throughout 2025 and identifying key trends that will shape the industry in 2026.

In 2025, ETFs reached a new milestone of $714 billion in total assets under management, up 37.6 per cent from approximately $519 billion at the end of 2024. The first half of 2025 alone saw record inflows of $55 billion, marking the strongest six-month period in Canadian ETF history. Mackenzie projects ETF assets to grow more than 20 per cent annually, driven by their evolution from simple access products to sophisticated portfolio building blocks.

"Canada's ETF industry has entered a new era, driven by financial advisors and investors seeking sophisticated, cost-efficient solutions," said Prerna Mathews, Vice President, ETF Product Strategy, at Mackenzie Investments. "ETFs have become the default vehicle for portfolio construction in Canada and, in 2026, we expect Canadians to lean even further into these strategies to deliver tailored outcomes for a diverse range of investor needs."

In the Outlook, Mackenzie has identified three defining trends that will drive the ETF industry in 2026 and beyond:

• Active ETFs Come of Age: Active ETFs have moved from niche to mainstream, now accounting for a significant share of Canadian ETF assets after growing fifteen-fold in the past decade. This rapid rise reflects a broader shift in advisors' preference for combining active management insights with the liquidity and cost-efficiency of ETFs. With Client Relationship Model III (CRM3) bringing greater fee transparency, Mackenzie believes active ETFs are well-positioned to benefit as advisors seek cost-efficient, easy-to-explain solutions that align with evolving client expectations.
• Systematic Strategies Find Their Stride: Systematic and factor-based strategies that allow advisors to fine-tune exposures and manage cycles with greater discipline are becoming essential building blocks of modern ETF portfolios. Canadian advisors are embracing "smart beta" strategies that tilt toward quality, value, growth, momentum and low volatility through data-driven processes to enhance portfolio resilience. As technology and analytics become more embedded in advisory practices, Mackenzie expects that systematic ETFs will form a cornerstone of modern portfolios, supporting advisors in delivering process-driven outcomes without sacrificing flexibility.
• Alternatives Find a Home in the ETF Structure: Alternative strategies are rapidly expanding within ETFs, offering exposure to differentiated return streams once reserved for institutional investors, including access to commodities, credit and hedged-equity strategies. As investors seek to diversify beyond the traditional 60/40 mix, ETFs offer accessible, liquid solutions for diversification, volatility management and income generation. With the forecasted rapid growth of Canadian ETF assets, advisor education and appropriate due diligence will become critical in distinguishing between alternative ETFs that truly add diversification to portfolios rather than simply repackaging market beta.

"As the ETF landscape deepens with solutions across active, systematic and alternative categories, advisors have evolved from product selectors to portfolio architects," noted Ms. Mathews. "In 2026, ETFs will continue to serve as the connection between investment philosophy and portfolio execution, providing advisors with the flexibility to tailor exposures across client objectives, time horizons and risk profiles while delivering the transparency and efficiency that clients expect."

To read Mackenzie's 2026 ETF Outlook, please visit: https://www.mackenzieinvestments.com/en/institute/insights/etf-outlook

About Mackenzie Investments
Mackenzie Investments ("Mackenzie") is a Canadian investment management firm with approximately $244 billion in assets under management as of December 31, 2025. Mackenzie seeks to create a more invested world by delivering strong investment performance and offering innovative portfolio solutions and related services to more than one million retail and institutional clients through multiple distribution channels. Founded in 1967, it is a global asset manager with offices across Canada as well as in Beijing, Boston, Dublin, Hong Kong and London. Mackenzie is a member of IGM Financial Inc. (TSX: IGM), part of the Power Corporation group of companies and one of Canada's leading diversified wealth and asset management organizations with approximately $310 billion in total assets under management and advisement as of December 31, 2025. For more information, visit mackenzieinvestments.com

SOURCE Mackenzie Investments

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