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5 Things to Know Today: BoC Hike Bets, TSX Slide, Oil Near $100 (Oct. 23)

  Canadian Money Brief • Friday, October 23, 2026 The Bank of Canada decision is five days away, the TSX gave back most of Wednesday's gains, and oil is flirting with US$100 again. Here are the five things Canadian wallets need to know today. 1. Markets Lean Toward a Bank of Canada Hike on Oct. 28 A decision that looked like a ninth straight hold is now a genuine coin flip with a hawkish tilt. After Governor Tiff Macklem warned that there is "no resolution in sight" for the Middle East conflict, BMO and Desjardins flipped to a hike call, Scotiabank firmed up its call and Goldman Sachs joined them, all looking for a quarter-point move to 2.50%. Overnight swaps priced about an 87% chance of a hike earlier this week, though other economists still argue for a hold, pointing to September's 68,000 job losses and a 6.5% unemployment rate. What it means for you: A quarter-point hike adds roughly $21 a month in interest for every $100,000 of variable-rate borrowing (HELOCs an...
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Investors Shift Focus: Canadian Mutual Funds and ETFs in the High-Interest Rate Era

 

Amid high interest rates and market volatility, Canadian investors have made significant adjustments to their investment portfolios. The spotlight is on both mutual funds and exchange-traded funds (ETFs) as they navigate this challenging landscape.

Over the past year, Canadian mutual funds experienced a rollercoaster of net redemptions. Investors pulled billions of dollars out, creating a trend that persisted for 11 consecutive months. The pattern began when the Bank of Canada initiated a series of interest rate hikes in March 2022. With short-term product rates reaching nearly six percent, many investors shifted toward more conservative investments. Additionally, market volatility played a role, affecting their willingness to invest in stock and bond funds.

Some notable net outflows from mutual funds include:

  • June 2022: A net withdrawal of $10.4 billion
  • September 2022: A net withdrawal of $9 billion
  • October 2023: A net withdrawal of $12.5 billion

In contrast to mutual funds, Canadian ETFs have maintained a more stable trajectory. While sales of ETFs have also slowed during this interest rate cycle, they have remained net positive. In 2023, ETFs saw net sales of $37.6 billion, slightly up from 2022 but down from their peak of $58.3 billion in 2021. These figures come from the Investment Funds Institute of Canada’s 2023 investment funds report.

The move from mutual funds to ETFs reflects a broader trend seen not only in Canada but also in the United States. Investors are shifting from more expensive mutual funds to the cost-effective alternative of ETFs. The appeal lies in the efficiency and flexibility of ETFs, which offer exposure to a diversified portfolio of assets at a lower cost.

As the high-interest rate era continues, investors will likely keep adjusting their strategies. The rise of ETFs and their ability to provide cost-effective diversification will remain a key factor in shaping the investment landscape.


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