Canadian exchange-traded funds (ETFs) are having a big summer, with $7.6 billion invested in July. The summer’s huge influx makes 2024 look like it could be a record-breaking year for ETFs. So, why are so many people jumping on the ETF bandwagon? It’s simple: ETFs offer a safe bet during times of market uncertainty, a.k.a. right now, with global conflicts and upcoming U.S. elections. ETFs let you invest in a mix of stocks and bonds, spreading your money across various industries and companies to help mitigate risk. This stability encourages investors to invest in ETFs, even when times are tough. Take the market crash in March 2020, for example. Despite the S&P/TSX Composite Index dropping 37%, bond ETFs saw relatively modest losses, with $1.2 billion pulled out, and positive sales resuming by June. In fact, ETF sales actually surged in March 2020, hitting their highest point. So even though people were pulling out cash, many were still jumping into ETFs. Experts even say your entire portfolio could be made up of ETFs — the key is to spread out your investments across industries. For example, if your ETFs are heavily concentrated in a sector like tech, you might face risks if that sector hits a rough patch, like it did during the market dip in the beginning of August.