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ETF Insight

8 Top-Performing Canadian Stock ETFs

Offerings from BlackRock and Fidelity stand out.

Frank Lee 22 October, 2024 | 11:23AM
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ETFs

Canadian stocks are posting strong gains in 2024, with the top-performing exchange-traded funds in the category outpacing the broader market.

We screened for the best-performing ETFs focused on Canadian stocks, based on their performance over the last one-, three-, and five-year periods. Among those with consistently strong track records are ETFs from iShares and Fidelity. 

Top Canadian Equity ETFs

  • iShares ESG Aware MSCI Canada Index ETF XESG
  • Fidelity Canadian High Quality ETF FCCQ
  • CI Morningstar National Bank Québec Index ETF QXM
  • Fidelity Canadian Low Volatility ETF FCCL
  • iShares Canadian Growth Index ETF XCG
  • iShares Jantzi Social Index ETF XEN
  • Global X S&P/TSX 60 Covered Call ETF CNCC
  • BMO SIA Focused Canadian Equity Fund ZFC

Canadian Equity ETF Performance

The Morningstar Canada Index has returned a solid 18.23% in the year to date. Meanwhile, Canadian equity funds have on average surpassed the market, gaining 20.62% this year.

Over the last 12 months, Canadian equity funds have on average returned 26.45%, just behind the 26.69% return on the Canada Index. On an annualized rate, these funds have returned 8.16% over the last three years and 10.45% over the last five years. Meanwhile, the Canada Index has gained 9.20% per year for the last three years, and 12.07% for the last five years.

Screening for the Top-Performing ETFs

For this article, we screened returns from the past five years for ETFs that ranked in the top 33% of the Canadian equity category over one-, three-, and five-year periods.

This left eight funds, six of which are index funds, while the remaining two are actively managed.

What Are Canadian Equity ETFs?

These funds invest principally in the equities of Canadian companies. They invest at least 75% of their total assets in equities, and at least 75% of those assets in Canadian equities.

iShares ESG Aware MSCI Canada Index ETF XESG

Over the past year, the passively managed iShares ESG Aware MSCI Canada Index ETF rose 30.12%, while the average Canadian equity fund gained 29.00%. The fund placed in the 42nd percentile for performance and lagged its benchmark, the Morningstar Canada Index, by 2.06 percentage points. The C$449.2 million fund has climbed 7.8% over the past three years, underperforming the average fund in its category, which rose 8.38%. Over the past five years, the iShares fund is up 11.27%, while the average fund in its category is up 10.69%.

Fidelity Canadian High Quality ETF FCCQ

The passively managed Fidelity Canadian High Quality ETF gained 27.45% over the past year, underperforming the average fund in the Canadian equity category, which rose 29.00%. The fund placed in the 72nd percentile for performance and lagged its benchmark, the Morningstar Canada Index, by 4.73 percentage points. The C$168.3 million fund has gained 8.26% over the past three years, while the average fund in its category is up 8.38%. Over the past five years, the Fidelity International fund has climbed 9.86%, compared with the 10.69% gain for the category.

CI Morningstar National Bank Québec Index ETF QXM

Over the past year, the passively managed CI Morningstar National Bank Québec Index ETF rose 28.48%, while the average Canadian equity fund gained 29.00%. The fund placed in the 63rd percentile for performance and lagged its benchmark, the Morningstar Canada Index, by 3.7 percentage points. The C$79.4 million fund has climbed 6.57% over the past three years, underperforming the average fund in its category, which rose 8.38%. Over the past five years, the CI Investments fund is up 9.98%, while the average fund in its category is up 10.69%.

Fidelity Canadian Low Volatility ETF FCCL

The passively managed Fidelity Canadian Low Volatility ETF gained 28.62% over the past year, performing roughly in line with the average fund in the Canadian equity category, which rose 29.00%. The fund placed in the 62nd percentile for performance and lagged its benchmark, the Morningstar Canada Index, by 3.56 percentage points. The C$150.2 million fund has gained 8.09% over the past three years, while the average fund in its category is up 8.38%. Over the past five years, the Fidelity International fund has climbed 8.14%, compared with the 10.69% gain for the category.

iShares Canadian Growth Index ETF XCG

The C$95.8 million iShares Canadian Growth Index ETF rose 29.92% over the past year. The gain on the passively managed fund was roughly in line with the 29.00% gain on the average fund in the Canadian equity category, leaving it in the 46th percentile for performance. The fund lagged its benchmark, the Morningstar Canada Index, by 2.26 percentage points. Over the past three years, the iShares fund rose 7.26%, while the average fund in its category rose 8.38%. Over the past five years, the fund has climbed 11.19%, compared with the 10.69% gain for the category.

iShares Jantzi Social Index ETF XEN

Over the past year, the passively managed iShares Jantzi Social Index ETF rose 25.23%, while the average Canadian equity fund gained 29.00%. The fund placed in the 87th percentile for performance and lagged its benchmark, the Morningstar Canada Index, by 6.95 percentage points. The C$124 million fund has climbed 9.0% over the past three years, outperforming the average fund in its category, which rose 8.38%. Over the past five years, the iShares fund is up 10.61%, while the average fund in its category is up 10.69%.

Global X S&P/TSX 60 Covered Call ETF CNCC

The C$86.3 million Global X S&P/TSX 60 Covered Call ETF rose 20.46% over the past year. The gain on the actively managed fund was shy of the 29.00% gain on the average fund in the Canadian equity category, leaving it in the 98th percentile for performance. The fund lagged its benchmark, the Morningstar Canada Index, by 11.72 percentage points. Over the past three years, the Global X fund rose 5.86%, while the average fund in its category rose 8.38%. Over the past five years, the fund has climbed 8.33%, compared with the 10.69% gain for the category.

BMO SIA Focused Canadian Equity Fund ZFC

The actively managed BMO SIA Focused Canadian Equity Fund gained 15.52% over the past year, underperforming the average fund in the Canadian equity category, which rose 29.00%. The fund placed in the 99th percentile for performance and lagged its benchmark, the Morningstar Canada Index, by 16.66 percentage points. The C$73.7 million fund has gained 4.79% over the past three years, while the average fund in its category is up 8.38%. Over the past five years, the BMO fund has climbed 6.77%, compared with the 10.69% gain for the category.

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About Author

Frank Lee  is associate data journalist with Morningstar

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