And more products are added by the day.
“On average, more than one Canadian ETF launches every trading day. To be exact, an average 1.4 Canadian ETFs are launched every trading day. In the U.S., this number is even larger with an average 3.8 new ETFs launched every trading day,” Rincon writes.
At this pace, the ETF industries in both countries are on track to break their records for annual fund launches in 2025.
The report notes that as of August, 211 new ETFs launched in Canada and 570 new ETFs launched in the U.S. By comparison, last year a total of 229 ETFs and 729 ETFs were listed in Canada and the U.S., respectively.
It also highlights that net new ETFs “continue to rise at a record pace given that the number of ETF delistings remain relatively stable year over year and continue to be much smaller than the new launches this year.”
In Canada, there were 63 ETF delistings in 2024 and 38 year to date. In the U.S., there were 174 delistings in 2024 and around 90 so far this year.
What’s driving the ETF race?
There are several factors driving the influx of new ETFs.
For one, the increasing popularity of active strategies among ETF investors has led to a big boost in fund launches. The report notes that active ETFs accounted for more than 60% and 85% of new launches in Canada and the U.S. in 2025, respectively.
Some active ETF strategies that have resonated with investors this year include single-stock ETFs, option strategy ETFs and credit-loan obligation (CLO) ETFs.
Crypto innovations, particularly in the Canadian ETF market, have also caused a spike in launches. For example, in 2025, issuers in the country unveiled the first spot Solana and XRP ETFs in North America.
Other crypto ETFs also hit the market, including 11 bitcoin ETFs with varying strategies, the report notes.
But Rincon suggests that perhaps a more important reason behind the phenomenon of funds launching at such a rapid pace is FOMO.
“Once a novel product idea comes to the ETF market, many ETF issuers rush and launch several similar products,” he writes.
He provides a few examples of this. Rincon notes that Canadian ETF issuers this year rushed to launch eight AAA CLO ETFs within two months.
Meanwhile, in the U.S., issuers unveiled 16 S&P 500 option strategy ETFs, 14 of which are buffer ETFs. This brings the total of option strategy ETFs with the S&P 500 as the underlying exposure to 64.
“FOMO is driving many issuers to launch similar products quickly, leading to crowded market segments,” Rincon writes.
How sustainable is this?
But Rincon questions “how many ETFs are too many ETFs.”
With the increased competition in the ETF market, issuers naturally compete on fees and have their margins squeezed. This is especially challenging for smaller providers, which are less known among investors and less likely to gather enough assets to justify lower fees.
As well, Rincon mentions that “ETF industry participants such as market makers have limited resources such as seed capital and balance sheet and can’t support an unlimited number of ETFs. As a result, new products (especially from smaller issuers) in the future may face challenges securing seed partners and market makers.”
He adds that matters could become more difficult if ETF share classes get approved.
“From a market maker’s perspective, resource constraints may also limit the total number of ETFs that can be launched in the market. Until we attain that equilibrium, the pace seems like it will continue, making new ETF launches routine.”