This Week in Canada ETFs: February 2–6, 2026
Here’s a recap of all the key developments from week 6 of 2026 in Canada’s ETF market.
Here’s a recap of ETF activity across the Canadian market this week, from launches and filings to key structural updates.
New Index Building Blocks from BMO
One of the most notable developments comes from BMO Asset Management, which has rolled out three new index strategies designed to provide targeted exposure across income, global equities, and U.S. markets.
The BMO MSCI Canada IMI High Dividend Yield Index ETF (ZDIV) delivers broad exposure to Canadian dividend-paying companies across large-, mid-, and small-cap segments. The strategy tracks the MSCI Canada IMI High Dividend Yield Select Index, offering investors an income-focused core allocation that captures yield opportunities across the domestic equity universe.
For international diversification, the BMO MSCI EAFE Small-Mid Cap Index ETF (ZESM) focuses on mid- and small-cap companies across developed markets outside Canada and the United States. By tracking the MSCI EAFE SMID Cap Index, the fund provides access to a segment often underrepresented in global portfolios but rich in growth potential and diversification benefits.
Rounding out the trio is the BMO MSCI USA Equal Weight Index ETF (ZEQL), which tracks the MSCI USA Equal Weighted Index. Unlike traditional market-cap-weighted strategies dominated by mega-caps, ZEQL distributes exposure more evenly across U.S. equities. This approach offers investors a more balanced view of the American market and reduces concentration risk. The ETF is available in multiple currency options, including hedged and USD units, adding flexibility for portfolio construction.
Together, these launches reinforce the continued demand for precise, rules-based exposure that can serve as foundational portfolio building blocks.
Sun Life Expands Low-Volatility Lineup
Sun Life Global Investments is also strengthening its ETF presence with the introduction of two new ETF series that extend its MFS Blended Research Low Vol strategies.
The SLGI MFS Blended Research Low Vol Global Fund – ETF Series (SBLG) and SLGI MFS Blended Research Low Vol International Fund – ETF Series (SBLI) both target long-term capital appreciation with a lower volatility profile. Each carries a 0.50% management fee and leverages MFS Investment Management’s blended research approach.
SBLG offers global equity exposure across regions, while SBLI focuses on markets outside Canada and the United States. Both strategies can invest directly in equities or indirectly through other funds and ETFs, allowing for a diversified and flexible implementation. Their launch follows recent fee reductions and fund renamings designed to better reflect the underlying investment process, signaling a continued push toward cost efficiency and clarity for investors.
New Inverse Single-Stock ETFs Arrive
Canada’s ETF innovation streak continues with LongPoint Asset Management expanding its suite of leveraged and inverse single-stock products.
The SavvyShort (-2X) MSTR ETF (MSTZ) and SavvyShort (-2X) COIN ETF (COID) provide two times inverse daily exposure to MicroStrategy and Coinbase respectively. These funds are designed for sophisticated investors seeking tactical positioning around company-specific news, market events, or short-term technical views.
Both ETFs offer leveraged exposure without currency hedging and trade in Canadian dollars, enabling investors to express high-conviction views on crypto-linked equities through a regulated ETF wrapper. The launches build on LongPoint’s earlier entries into leveraged commodities, triple-leveraged index products, and single-stock ETFs, reinforcing its positioning as a specialist in tactical ETF strategies.
Middlefield Debuts Short-Duration Bond Plus ETF
On the fixed income front, Middlefield has introduced the Middlefield Short Duration Bond Plus ETF (MSBP), an actively managed strategy targeting absolute returns with low volatility.
The portfolio focuses on short-duration corporate bonds across North America, maintaining a duration under 2.5 years to manage interest rate risk while seeking steady income and capital appreciation. The ETF marks the first in a broader fixed income lineup for the firm.
Purpose Combines Staking and Spot Ether Exposure
Meanwhile, the digital asset space is seeing consolidation. Purpose Investments is merging the Purpose Ether Staking Corp. ETF into the Purpose Ether ETF (ETHH.B), creating a single scaled vehicle that combines direct Ether exposure with staking rewards. The move is expected to improve operational efficiency, reduce costs, and simplify access to Ethereum within a regulated ETF structure. Following the merger, ETHH.B will integrate staking through Purpose’s in-house infrastructure, reflecting the growing institutionalization of crypto strategies.
Manulife Files Trio of Asset Allocation ETFs
Looking ahead, Manulife has filed for three asset allocation ETFs. The Conservative (MCAP), Balanced (MBAP), and Growth (MGAP) portfolios will offer diversified exposure across equities and fixed income with a 0.35% management fee. These filings point to continued demand for all-in-one portfolio solutions that simplify asset allocation for investors.
Canada’s ETF Leaders Rack Up Performance Honors
Performance accolades are once again putting Canada’s ETF industry in the spotlight, with multiple issuers recognized at the 2025 FundGrade A+® Awards for delivering strong, consistent risk-adjusted returns. Among the standout strategies, the Evolve European Banks Enhanced Yield ETF ranked near the top of the Financial Services Equity category, reflecting robust performance over the 2022–2025 period. The recognition highlights continued investor appetite for targeted sector exposure combined with income-oriented approaches.
Large asset managers also dominated the awards landscape. TD Asset Management captured 24 FundGrade A+® Awards across its ETF and mutual fund lineup, marking its 14th consecutive year of recognition and matching its highest annual total. BMO followed with 27 awards spanning 19 ETFs and 8 mutual funds, while the Harvest Healthcare Leaders Income ETF (HHL) earned honors for resilient performance and diversified global healthcare exposure. Together, the results underscore a highly competitive environment where consistent, risk-adjusted performance remains a key differentiator.
In total, 63 investment management firms were recognized, with 418 Canadian investment funds receiving A+ Awards. The annual designation is awarded to funds demonstrating outstanding, consistent risk-adjusted performance over periods of up to 10 years, offering investors and advisors a clear, quantitative benchmark for evaluating fund quality.
Of the total winners, 187 were mutual funds, 117 were ETFs, and 114 were segregated funds, with an additional three strategies receiving the A+ Responsible Investing Award. The breadth of recognition reflects both the growing scale of the ETF segment and its increasing role in delivering competitive long-term outcomes for investors.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
