The first quarter of 2026 has reinforced a clear theme for investors: Canadian equity is outperforming, while U.S.-focused funds are feeling the pressure. Here’s a breakdown of how iA Financial Group’s fund lineup performed – and what the numbers tell us.
Key Takeaways from Q1 2026
Canadian Small Cap leads the pack. The iA Canadian Equity Small Cap fund delivered the strongest year-to-date return at +10.99%, with an exceptional 1-year return of +61.02%. For investors with a medium-to-high risk tolerance and a longer time horizon, this fund continues to demonstrate compelling long-term results: +25.78% over 3 years and +17.53% over 5 years.
U.S. equity funds are under pressure. Both U.S.-focused funds posted negative YTD returns in Q1. The iA U.S. Equity fund is down -3.30% year-to-date, while the iA Thematic Innovation fund dropped -5.45%. This is consistent with broader market conditions affecting U.S. equities in early 2026. However, their long-term track records – +13.21% and +18.18% over 3 years respectively – remind us that short-term volatility is part of the picture.
Dividend Growth offers stability. With a Low-Medium risk rating and $2.35 billion in net assets, the iA Dividend Growth fund is the largest fund in this lineup. Its YTD return of +3.80% and consistent long-term performance (+14.80% over 3 years) make it a solid option for investors seeking income with lower volatility.
Fidelity Global Innovators continues to impress long-term. With a 3-year return of +38.89% and a since-inception return of +14.37%, this High-risk fund is built for growth-oriented investors comfortable with volatility. YTD data is not yet available for Q1 2026.
Q1 2026 Fund Performance at a Glance
| Fund | YTD | 1 Year | 3 Years | 5 Years | Since Incep. | Net Assets |
|---|---|---|---|---|---|---|
| Canadian Equity Small Cap (iA) | +11% | +61% | +26% | +18% | +35% | $623M |
| Canadian Equity Growth (iA) | +1% | +25% | +16% | +12% | +7% | $1,628M |
| Dividend Growth (iA) | +4% | +19% | +15% | +11% | +7% | $2,351M |
| Asian Pacific (iA) | +5% | +25% | +16% | +4% | +6% | $303M |
| Fidelity Global Innovators® | N/A | +19% | +39% | +13% | +14% | $1,458M |
| U.S. Equity (iA) | -3% | +6% | +13% | +9% | +10% | $185M |
| Thematic Innovation (iA) | -5% | +13% | +18% | +10% | +12% | $1,628M |
Past returns are not indicative of future results. Data as at March 31, 2026.
What This Means for Investors
The Q1 2026 data illustrates why diversification matters. Funds concentrated in Canadian equities – particularly small and mid-cap – have benefited from a favorable domestic environment. Meanwhile, U.S. equity exposure has created headwinds for some portfolios in the short term.
A few considerations worth discussing with your advisor:
- If your portfolio is heavily weighted toward U.S. equities, Q1 results may warrant a review of your geographic allocation.
- If you’re approaching retirement or prefer stability, the Dividend Growth fund’s consistent results and low-to-medium risk profile may deserve more attention.
- If you have a long time horizon and higher risk tolerance, the Small Cap and Fidelity Global Innovators funds have demonstrated strong compounding over 3 and 5 years.
Let’s Talk About Your Portfolio
Performance data is only part of the picture. The right fund – or mix of funds – depends on your goals, time horizon, and comfort with risk. Every investor’s situation is different.
Book a no-obligation conversation with our team to review your current strategy and see if any adjustments make sense for your Q2 2026 outlook.
Disclaimer: Past performance is not indicative of future results. This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making any investment decisions. Data sourced from iA Financial Group, as at March 31, 2026.