Guardian Capital Taps Active ETF Boom with New Fund Launches

TORONTO, ON – March 10, 2026 – Guardian Capital LP has significantly expanded its product lineup, launching new series for three of its core actively managed funds that began trading on the Toronto Stock Exchange (TSX) this morning. The move embraces the rapidly growing demand for active exchange-traded funds (ETFs) and provides investors with greater flexibility in how they access the firm's strategies.

The new offerings include ETF series for the Guardian Canadian Equity Income Fund (TSX: GCEI), Guardian Fundamental Global Equity Fund (TSX: GFGE), and Guardian Short Duration Bond Fund (TSX: GSDB). Alongside the ETFs, new mutual fund Series A and Series F units are now available for the Canadian Equity Income and Fundamental Global Equity funds.

In a statement, the company noted the launches represent a continuation of its effort to provide investors and advisors with “convenient access to our professional-managed investment mandates in various vehicle types that best suit their needs and preferences.” This expansion signals a strategic adaptation to a Canadian investment landscape increasingly shaped by the efficiency and transparency of the ETF structure.

Riding the Wave of Active ETFs

Guardian Capital’s latest product expansion is not happening in a vacuum. It is a direct response to one of the most powerful trends in Canadian finance: the explosive growth of actively managed ETFs. The Canadian ETF market shattered records in 2025, with total assets under management (AUM) surging over 40% to nearly C$800 billion, fueled by unprecedented net inflows of C$154 billion.

Crucially, the engine of this growth was not traditional passive index-tracking. A staggering 67% of the record 374 new ETFs launched in 2025 were active strategies. These active ETFs now represent approximately 28% of the total Canadian ETF market, a share that has grown fifteen-fold over the past decade. This rapid adoption has outpaced both passive ETFs and traditional mutual funds, indicating a clear shift in investor and advisor preference.

“Firms that don't offer their active strategies in an ETF wrapper risk being left behind,” commented one industry analyst. “The market has spoken. Investors want the potential for outperformance that active management promises, but they want it delivered in the lower-cost, transparent, and liquid vehicle that an ETF provides.”

This trend is blurring the lines between the historically separate worlds of mutual funds and ETFs. By launching ETF series of existing mutual fund strategies, firms like Guardian are creating a more unified product shelf where the underlying investment strategy is consistent, but the delivery mechanism is tailored to different client needs and fee structures.

A Strategic Play in a Competitive Arena

The move is also a calculated response to the intense competitive pressures within Canada's investment industry. The Canadian mutual fund market, while massive at over C$2.6 trillion, has long faced criticism for its high fees. The average asset-weighted Management Expense Ratio (MER) for Canadian asset-allocation funds hovers near 1.8%, significantly higher than in markets like the United States. This “fee drag” has become a central point of concern for regulators and cost-conscious investors.

Furthermore, reports have consistently shown that a majority of actively managed mutual funds fail to outperform their benchmarks over the long term, making it harder for advisors to justify higher fees. The ETF structure, with its typically lower management fees and unbundled pricing, offers a compelling alternative.

Guardian Capital’s new ETFs are priced to compete. The management fees range from a low of 0.30% for the Guardian Short Duration Bond Fund ETF to 0.60% for the Guardian Fundamental Global Equity Fund ETF. These fees, while higher than pure passive index funds, are competitive within the active ETF space and offer a significant cost reduction compared to their traditional mutual fund counterparts, especially the Series A versions which bundle advisor compensation.

“For advisors, this provides more tools in the toolbox,” noted a Toronto-based financial planner. “We can now access a familiar active strategy in a more tax-efficient and lower-cost structure, which is a clear win for clients. It aligns perfectly with the move toward fee-based advice, where transparency is paramount.”

A Closer Look at the New Offerings

The three funds at the center of the launch target core components of a diversified investment portfolio, now accessible through the TSX.

• Guardian Canadian Equity Income Fund (GCEI): This fund aims to deliver a high level of stable income and attractive total returns. Its strategy centers on investing in Canadian dividend-paying stocks, income trusts, and other flow-through securities. With a management fee of 0.50% for the ETF series, it provides a new vehicle for investors seeking income from the Canadian market.

• Guardian Fundamental Global Equity Fund (GFGE): Focused on long-term capital appreciation, this fund invests in a portfolio of high-quality equity securities from around the world. Its active approach seeks to identify strong global companies. The ETF series carries a management fee of 0.60%, offering a new access point to global growth opportunities.

• Guardian Short Duration Bond Fund (GSDB): Designed for capital preservation and current income, this fund invests in bonds and other debt instruments while maintaining a relatively short portfolio duration to mitigate interest rate risk. With a management fee of just 0.30% for the ETF series, it targets investors looking for a stable, lower-risk component for their portfolios.

In addition to the new launches, Guardian Capital also announced the redesignation of several mutual fund series names to streamline its product offerings, changing certain Series W and Series WF funds to Series A and Series F, respectively. This housekeeping measure further clarifies the product suite for advisors and investors navigating the firm’s expanding options. As asset managers continue to adapt their product shelves, the convergence of active management and the ETF structure appears set to define the next chapter of Canadian investing.