TORONTO - Indexing is gaining popularity with Canadian fund investors, especially when it comes to playing the U.S. market. Over the past 15 months, the number of passively-managed open-end funds available to small investors has nearly doubled to 85. That is up from 44 at the end of 1997.
With $7.1 billion in combined assets (all figures in Canadian dollars), index funds still represent a small part of the fund universe. By comparison, mutual fund assets managed by member firms of the Investment Funds Institute of Canada (IFIC) totaled $340 billion at the end of the first quarter.