With over 80% of mutual fund and ETF assets held in Canadian-domiciled firms as of April 2025, Canadian investors clearly favor their own. However, the top-rated US asset managers can offer unique perks. These firms have the scale to offer competitive fees, attract top talent, and provide investment strategies backed by robust risk management.
The Parent Pillar accounts for 10% of the Morningstar Medalist Rating for all funds distributed by a firm, highlighting those that align with investor interests. Here are three US-based firms with high Parent Pillar ratings and funds available in Canada.
Capital Group
Capital Group has adapted to changing investor preferences. In the United States, the firm partnered with industry peers to launch active-passive models that leverage its mutual fund lineup and built a range of actively managed ETFs available in multiple markets globally.
In Canada, the four newly launched active ETFs are similar to their existing mutual funds. These new investment options employ Capital’s time-tested investment philosophy, use its hallmark multimanager system, and draw from its huge pool of seasoned investors.
The firm is under a new but familiar kind of leadership. Mike Gitlin, previously the head of fixed income and global trading, took over as CEO in October 2023. The transition demonstrated a considered succession plan and a commitment to keeping the leadership team-oriented and investor-heavy.
Dimensional Fund Advisors
Dimensional’s clients began leaving its funds in 2019, but the firm’s response was exemplary. It initiated rounds of fee reductions, introduced tax-efficient ETFs for its US clients, and cut the minimum investment on its separate-account platform, all while sticking to its core philosophy.
In Canada, where the firm offers only mutual funds, it initiated several rounds of fee cuts with fees falling meaningfully across most of its fund range from 2019 to 2021. Firmwide net flows turned positive in 2023 and grew modestly in 2024. Co-CEOs Gerard O’Reilly and David Butler haven’t stood still. Dimensional has continued to expand the ways it delivers investments and has put more emphasis on the ways it helps advisors serve their clients.
Vanguard
Vanguard’s investor-first mentality is its north star. It has invested heavily in its advice business and ETF lineup over the past several years. Fees across its range are competitive and Vanguard hasn’t struggled to garner assets. It managed more than USD 9.1 trillion from roughly 50 million clients globally at the end of June 2024.
In Canada, Vanguard’s cost-efficient fees are also a differentiator, and it has continued to improve investor access with the recent launch of mutual fund versions of its popular allocation ETFs.
Salim Ramji became CEO in July 2024. Ramji was previously Blackrock’s global head of iShares and index investing. Ramji is Vanguard’s first external hire as CEO. He accumulated a lot of experience during his time at BlackRock, but it remains to be seen what his appointment means for Vanguard.
These firms offer a wide range of funds, including active and passive options. For those looking for ideas on how to access these firms, here is a list of the top actively managed funds rated by the Morningstar Manager Research Team:
Morningstar analysts Stephen Welch and Daniel Sotiroff contributed to this article.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.