The Canadian ETF market has reached a significant milestone, nearing $1 trillion in assets under management, creating opportunities for innovative partnerships between ETF providers and boutique advisory firms. Hamilton Capital Partners Inc. recently partnered with Westcourt Capital ULC to launch the Westcourt Hamilton Yield Portfolio ETF (WHYP-T), a fund of funds containing nine Hamilton covered-call ETFs. This collaboration addresses a key gap in Hamilton's offerings, as they have a strong options and covered-call team but lack active management capabilities. Westcourt, which had been managing a similar portfolio for clients for two years, now provides active management for the new ETF, allowing for tactical allocation adjustments based on market conditions rather than a rules-based approach. Industry experts note that while partnerships between ETF providers and subadvisors have been common, collaborations with boutique advisory firms like Westcourt are becoming more prevalent as the ETF market grows. Daniel Straus of National Bank Financial points to the industry's evolution, noting that early ETF firms often partnered with third-party managers to establish niche strategies in a market dominated by low-cost index ETFs. Today, actively managed ETFs account for $315 billion in assets, representing over a third of Canada's total ETF market, with more than 1,200 actively managed ETFs compared to 864 passive funds. The partnership model offers mutual benefits: ETF providers can quickly bring new funds to market at lower cost, while subadvisors gain access to broader distribution channels. The Westcourt Hamilton ETF has already attracted over $20 million in assets under management in its first month, demonstrating investor interest in this active, diversified, high-yield strategy. Hamilton's CEO Pat Sommerville emphasizes that the ultimate goal is to make investment solutions easier for end investors, particularly those seeking strategies that adjust to changing market conditions. As the ETF industry continues to mature, these innovative partnerships are likely to become more common as providers seek differentiation in a crowded marketplace.

Polar Capital delivers Q2 inflows of £1.2 billion despite a volatile backdrop in the market. Discover the insights now.

Pat Wing told the committee Q2 returns were concentrated in information-technology and AI-infrastructure names — semiconductors saw an outsized rally — creating headwinds for managers underweight those sectors and explaining relative underperformance for several active funds.

The Globe and Mail reports that many advisors and investors are shifting from passive to active fixed-income strategies due to rising geopolitical uncertainty, higher inflation, and the need to outpace inflation with investment returns. Alexandre Cousineau, head of fixed income at Middlefield, emphasizes that active management has never been more critical, particularly as passive strategies fail to navigate current market complexities. The article highlights how the 2022 interest rate reset disrupted the historical inverse correlation between stocks and bonds, leading to losses in both asset classes. Middlefield, a Toronto-based asset manager, has established a global active fixed-income team to address these challenges, leveraging fundamental analysis and credit selection to identify opportunities in sectors like aerospace, defense, energy, and emerging markets. The firm's approach focuses on duration, curve positioning, sector allocation, and security selection to generate alpha while managing interest rate and credit risks. Middlefield's newly launched Middlefield Short Duration Bond Plus fund aims to deliver attractive income with a focus on global markets, including developed and emerging economies. The article stresses that active fixed-income strategies are not 'black boxes' but are transparently communicated to clients, ensuring better investment outcomes. Advisors face increasing complexity due to factors such as Big Tech's borrowing impact on corporate debt, global conflicts, and unprecedented government spending on defense and stimulus, making active management essential for generating steady yield in today's environment. The piece concludes that Middlefield's 45-year track record in equity markets, combined with its new fixed-income expertise, positions it to deliver competitive risk-adjusted returns across various market conditions.

Over the 15-year period ending December 2024, there were no categories in which a majority of active managers outperformed.

Canada's exchange-traded fund (ETF) industry recorded record inflows of over $100 billion in the first half of 2026, according to National Bank Financial. This surpasses the previous annual high of $125.4 billion from last year, with the $100 billion mark reached earlier than the previous year. The sector is also on track for a record number of new product launches, with 201 so far, and 80% of these are actively managed. Morningstar Research reports that actively managed ETFs now account for over 35% of total Canadian ETF assets under management (AUM), with their share growing as passive funds' dominance wanes. Active ETFs saw $38.8 billion in inflows during the first five months of 2026, on pace to exceed last year's record. While equities remain the largest segment, there's growth in allocation, money market, and liquid alternative funds. The $1-trillion gross AUM milestone for Canadian ETFs was reached, though U.S. investors poured over $1 trillion into ETFs in the first half of 2026 alone. Canadian manufacturers have launched over 700 new U.S.-listed ETF products, raising concerns about capital flowing out of Canada. The article also touches on regulatory changes for advisors, tax strategies, and crypto services in Canada.

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EdenTree Investment Management's Aaron Cox explores why impact investing is in many ways the ultimate form of active management

Active management underperformed due to defensive positioning and heavy exposure to India.

By Patturaja Murugaboopathy (Reuters) -Global investors are pivoting towards actively managed equity funds this year as market volatility rises on worries over U.S. tariffs and the stock market rally broadens beyond a few mega-cap tech stocks. According to LSEG Lipper data, active equity funds secured a record inflow of $127 billion in the first half of 2025, up 57% over last year, while passively managed equity funds saw a decline of 8%. Passive strategies have dominated in recent years due to their lower fees and consistent outperformance over active peers. But this year, U.S. President Donald Trump’s tariff actions and rising geopolitical tensions have jolted markets, driving greater price dispersion across sectors and individual stocks. Analysts say the shifting backdrop is creating opportunities for active managers - particularly those focused on companies with strong pricing power, diversified revenues, and resilient supply chains - to outperform. A recent survey by Natixis Investment Managers found that 71% of strategists expect continued volatility in equity markets, and 68% anticipate similar turbulence in bonds. Yet, a majority are looking to capitalize on that volatility, with 71% targeting opportunities in equities and 74% in fixed income. "Simply owning the index may not provide the diversification or downside protection investors expect," said Joseph Shaposhnik, portfolio manager at Rainwater Equity. "Active managers with discipline around valuation and capital allocation have been able to avoid crowded or overvalued parts of the market, which has helped drive outperformance on a net basis this year." According to LSEG data, financials, telecom, and mining sectors have led global equity performance this year with gains of 10% or more, while the previously dominant tech sector has lagged, returning just 8.6%. Chad Harmer, chief investment officer at Harmer Wealth Management, said that the S&P 500’s top 10 names now account for nearly 35% of the index’s market capitalization, levels that historically precede periods of underperformance. "When leadership narrows, index investors shoulder more single‑stock risk than they bargained for. Active managers can sidestep that concentration or lean into overlooked areas," he said. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.