Canadian ETF industry surpasses $1 trillion AUM milestone with 2,025 listed funds; 158 ETFs explicitly mention 'dividend'

The Canadian ETF industry has reached a significant milestone, surpassing $1 trillion in assets under management (AUM) with 2,025 listed funds.¹

Of these, 158 ETFs, or 7.8%, explicitly include 'dividend' in their names, reflecting a growing trend towards dividend-focused investments.²

According to Cboe Canada’s ETF Market Screener, this growth indicates a robust interest in dividend strategies, despite the fact that many dividend ETFs have historically lagged the broader market.³

Many dividend ETFs have historically lagged the broader market, whether due to higher management fees or a lack of exposure to faster-growing sectors like technology.

Investors should be aware that while dividend payments can provide income, they also come with tax implications, as every dividend payment is generally a taxable event outside registered accounts.

Canadian eligible dividends benefit from the dividend tax credit, making them relatively tax efficient compared to other forms of investment income.

For instance, a $10,000 investment in the SPDR S&P 500 ETF Trust (SPY) made at its inception in 1993 would have grown to approximately $310,847 by mid-July 2026 with dividends reinvested, compared to $175,008 without reinvesting dividends.

This translates into an annualized return of 10.82% with dividend compounding versus 8.85% without it, emphasizing the potential benefits of dividend reinvestment strategies.