In this post we will review the Top 10 Best Growth ETF in Canada that are leading the pack in the past 52 weeks! We have selected only ETFs that had the highest returns. Also, we limited ourselves to ETFs that have asset under management (AUM) above 100 millions dollars. ETFs with low AUM tend to be less liquid and cost more when trading because of the spread (the difference between the bid and ask price) is often high. In addition, speculative ETFs such as betapro or equivalent were not included.
Please note, past performance does not guarantee future results. I personally use this list to understand market trends and anticipate future ones.
- CIBC Investor’s Edge Review (2022) – Cashback offer
- Review of VDY – Vanguard FTSE Canadian High Dividend Yield Index
- Best Canadian monthly dividend ETF – 2022
Best growth ETF: performance table
| Name | Mgmnt Fee | AUM in M |
| XEG – Ishares S&P TSX Capped Energy Index ETF | 0.55% | 1,986 |
| NXF-B CI First Asset Energy Giants Cov Call ETF | 0.65% | 207 |
| NNRG.NE -Ninepoint Energy Fund | 1.50% | 413 |
| ZEO – BMO S&P TSX Eql Weight Oil Gas Index | 0.55% | 240 |
| NXF – CI First Asset Energy Giants ETF Unhedged | 0.65% | 322 |
| QBTL -Agfiq US Mkt Neut A ntibeta CAD Hdg | 0.50% | 333 |
| XMA -Ishares S&P TSX Capped Materials ETF | 0.55% | 155 |
| XST -Ishares S&P TSX Capped Cons Stpl | 0.55% | 196 |
| XGD -Ishares S&P TSX Global Gold Index ETF | 0.55% | 1,203 |
| Name | 52W %Chg |
| XEG | +31.84% |
| NXF-B | +30.95% |
| NNRG.NE | +30.40% |
| ZEO | +23.04% |
| NXF | +20.12% |
| QBTL | +17.46% |
| XMA | +12.09% |
| XST | +11.11% |
| XGD | +10.53% |
Highlights
Energy
Within the past year, the S&P 500 Energy Sector index has been outpacing the broad S&P 500 index by a 20% margin, according to etftrends.com. This benefited Energy ETFs who are invested in significant Oil & Gaz producers. The fears surrounding supplies continue to be the primary catalyst. The US government tried to convince OPEC+ to increase production, but so far, these efforts have failed. Consequently, the United States will be using the strategic petroleum reserve to try to appease markets. Several other courtiers are expected to follow suit.
What lies ahead for 2022 is potentially more stable growth. Investors should pick producers who can benefit from the recent supply issues and who are also prepared to switch to wind and/or solar energy to reap future growth opportunities.
HXE – Horizons S&P TSX Capped Energy Index
Horizons HXE is an index ETF that seeks to replicate the performance of the S&P/TSX Capped Energy Index. The relative weight of any security constituting an index is capped to avoid being overweighted.
Despite the cap, this ETF remains dominated by Canadian Natural Resources and Suncor (almost 50% of the portfolio).
| Security Name | Weight |
|---|---|
| CANADIAN NATURAL RESOURCES LTD | 25.96% |
| SUNCOR ENERGY INC | 24.12% |
| CENOVUS ENERGY INC | 11.36% |
| TOURMALINE OIL CORP | 6.88% |
| IMPERIAL OIL LTD | 5.66% |
| ARC RESOURCES LTD | 5.01% |
| MEG ENERGY CORP | 2.28% |
| CRESCENT POINT ENERGY CORP | 2.25% |
| WHITECAP RESOURCES INC | 2.17% |
| ENERPLUS CORP | 1.85% |
please visit issuers’ website for up-to-date data
NNRG.NE -Ninepoint Energy Fund
Ninepoint Partners is one of Canada’s leading alternative investment management firms overseeing approximately $8 billion in assets under management and institutional contracts. Ninepoint offers mutual funds and ETFs targeting various sectors. The Ninepoint Energy fund is offered in two versions: a Mutual fund and an ETF.
The NNRG ETF version was launched in May 2021. Both have the same stated objective.
Review of NNRG ETF: Ninepoint Energy Fund
Top Ten Holdings
| Issuer Name |
|---|
| Arc Resources Ltd |
| Baytex Energy Corp |
| Cardinal Energy Ltd (Alberta) |
| Cenovus Energy Inc (Alberta) |
| Enerplus Corp |
| Headwater Exploration Inc |
| Meg Energy Corp |
| Nuvista Energy Ltd. |
| Tamarack Valley Energy Ltd |
| Whitecap Resources Inc |
XEG – Ishares S&P TSX Capped Energy Index ETF XEG
Funds objective: Seeks long-term capital growth by replicating the performance of the S&P/TSX Capped Energy Index, net of expenses.
In terms of holdings, Canadian Natural Resources and Suncor Energy make up almost 50% of the holdings. This high exposure reduces the benefit of diversification that’s usually desired by investors when buying an ETF.
The management fee is 0.55%.
XEG Morning star review
| Name | Weight (%) |
|---|---|
| SUNCOR ENERGY INC | 26.21 |
| CANADIAN NATURAL RESOURCES LTD | 23.48 |
| CENOVUS ENERGY INC | 13.50 |
| TOURMALINE OIL CORP | 8.97 |
| IMPERIAL OIL LTD | 6.47 |
| ARC RESOURCES LTD | 5.73 |
| WHITECAP RESOURCES INC | 2.40 |
| MEG ENERGY CORP | 2.29 |
| ENERPLUS CORP | 2.25 |
| CRESCENT POINT ENERGY CORP | 2.23 |
NXF and NXF-B – CI First Asset Energy Giants ETF Unhedged and NXF-B CI First Asset Energy Giants Cov Call ETF
NXF is an actively managed ETF and it invests in the 15 largest energy companies listed in North American stock exchange. The Fund’s investment objective is to provide :
- quarterly cash distributions;
- capital appreciation by investing on an equal weight basis in a portfolio of equity securities of at least the 15 largest energy companies measured by market capitalization;
- lower volatility of returns;
- liquidity of the issuers’ equity securities and their related call options.
NXF is a currency hedged ETF. Whereas, NXF-B is not hedged against currency risk.
| Name | % |
| PETROLEO BRASILEIRO SA | 8.10 |
| CANADIAN NATURAL RESOURCES LTD | 7.57 |
| SUNCOR ENERGY INC | 7.40 |
| EOG RESOURCES INC | 7.38 |
| EQUINOR ASA | 7.17 |
| CONOCOPHILLIPS | 6.70 |
| BP PLC | 6.58 |
| EXXON MOBIL CORP | 6.43 |
| ENI SPA | 6.39 |
| OCCIDENTAL PETROLEUM CORP | 6.31 |
| CHEVRON CORP | 6.27 |
| PIONEER NATURAL RESOURCES CO | 6.19 |
| TOTAL SE | 6.18 |
| ECOPETROL SA | 5.92 |
| ROYAL DUTCH SHELL PLC | 5.85 |
ZEO – BMO S&P TSX Eql Weight Oil Gas Index
The BMO Equal Weight Oil & Gas Index ETF (ZEO) has been designed to replicate, to the extent possible, the performance of the Solactive Equal Weight Canada Oil & Gas Index, net of expenses. In fact, the Fund invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index.
ZEO Morning star review
| Weight (%) | Name |
|---|---|
| 14.35% | CENOVUS ENERGY INC |
| 13.34% | SUNCOR ENERGY INC |
| 12.13% | IMPERIAL OIL LTD |
| 11.82% | CANADIAN NATURAL RESOURCES LTD |
| 11.04% | TOURMALINE OIL CORP |
| 9.56% | PEMBINA PIPELINE CORP |
| 9.44% | TRANSCANADA CORP |
| 9.37% | ENBRIDGE INC |
| 8.87% | KEYERA CORP |
QBTL -Agfiq US Mkt Neut A ntibeta CAD Hdg
This fund focuses on volatility as a mean of generating growth. The manager will hold US stocks with low volatility and short stocks with high volatility. The primary objectif is to potentially generate positive returns regardless of the direction of the general market.
COW -Ishares Global Agri Index ETF
The fund seeks exposure to companies involved in the production of agricultural products, fertilizers and agricultural chemicals, agricultural machinery, and packaged foods and meats.
| Name | Weight (%) |
|---|---|
| MOSAIC | 9.34 |
| ARCHER DANIELS MIDLAND | 9.31 |
| CORTEVA INC | 8.49 |
| BUNGE LTD | 7.69 |
| CNH INDUSTRIAL NV | 7.40 |
| DEERE | 6.26 |
| INTREPID POTASH INC | 5.78 |
| TRACTOR SUPPLY | 5.37 |
| TYSON FOODS INC CLASS A | 4.61 |
| CF INDUSTRIES HOLDINGS INC | 4.49 |
XHU -Ishares US High Div Equity Index ETF
XHU is an index ETF that replicates the performance of the Morningstar Dividend Yield Focus Index, net of expenses.
Please note there is a Canadian hedge version which is XHD ETF.
Key features:
- This ETF invests in 75 US high dividend paying Stocks
- Ratio analysis is done to select the portfolio
- Monthly dividends
| Name | Weight |
|---|---|
| EXXON MOBIL CORP | 9.96 |
| CHEVRON CORP | 7.35 |
| ABBVIE INC | 6.55 |
| VERIZON COMMUNICATIONS INC | 6.07 |
| MERCK & CO INC | 4.72 |
| PHILIP MORRIS INTERNATIONAL INC | 4.45 |
| PIONEER NATURAL RESOURCE | 4.33 |
| COCA-COLA | 3.86 |
| BROADCOM INC | 3.61 |
| CISCO SYSTEMS INC | 3.59 |
XST -Ishares S&P TSX Capped Cons Stpl
XST is a passive ETF. It’s ideal for investors who would like to gain exposure to the Consumer Sataples sector. The fund replicates S&P/TSX Capped Consumer Staples Index.
XST Holdings
| Name | Weight % |
|---|---|
| ALIMENTATION COUCHE TARD MULTI VOT | 27.87 |
| LOBLAW COMPANIES LTD | 19.05 |
| METRO INC | 16.74 |
| GEORGE WESTON LTD | 11.23 |
| EMPIRE LTD CLASS A | 7.03 |
| SAPUTO INC | 6.29 |
| PREMIUM BRANDS HOLDINGS CORP | 3.65 |
| PRIMO WATER CORP | 2.93 |
ZLU -BMO Low Volatility US Equity ETF CAD
The purpose of BMO’s Low Volatility US Equity ETF (ZLU) is to provide exposure to a low beta weighted portfolio of U.S. stocks. Beta is a measure of volatility.
| Weight (%) | Name |
|---|---|
| 1.58% | CAMPBELL SOUP CO |
| 1.55% | DOLLAR GENERAL CORP |
| 1.52% | DOMINO’S PIZZA INC |
| 1.51% | JOHNSON & JOHNSON |
| 1.45% | MERCK & CO INC |
| 1.40% | KELLOGG CO |
| 1.39% | CBOE GLOBAL MARKETS INC |
| 1.37% | PFIZER INC |
| 1.36% | QUEST DIAGNOSTICS INC |
| 1.36% | BECTON DICKINSON AND CO |
Please consult issuers’ website for up-to-date data
XMA -Ishares S&P TSX Capped Materials ETF
Aims for long-term growth and invests in Canadian materials companies.
| Name | Weight |
|---|---|
| NUTRIEN LTD | 17,47 |
| BARRICK GOLD CORP | 12,77 |
| FRANCO NEVADA CORP | 8,84 |
| AGNICO EAGLE MINES LTD | 8,25 |
| WHEATON PRECIOUS METALS CORP | 6,36 |
| TECK RESOURCES SUBORDINATE VOTING | 5,53 |
| FIRST QUANTUM MINERALS LTD | 5,51 |
| WEST FRASER TIMBER LTD | 2,44 |
| KINROSS GOLD CORP | 2,20 |
| CCL INDUSTRIES INC CLASS B | 1,95 |
XGD -Ishares S&P TSX Global Gold Index ETF
XGD is a high risk ETF that invests mainly in companies part of the S&P/TSX Global Gold Index. It’s an index ETF, so the main purpose of the manager is to replicate the performance, net of expenses.
| Name | Weight (%) |
|---|---|
| NEWMONT | 17.88 |
| BARRICK GOLD CORP | 14.58 |
| FRANCO NEVADA CORP | 11.78 |
| AGNICO EAGLE MINES LTD | 10.92 |
| WHEATON PRECIOUS METALS CORP | 8.34 |
| GOLD FIELDS ADR REPRESENTING LTD | 4.51 |
| ANGLOGOLD ASHANTI ADR REPTG LTD | 3.89 |
| ROYAL GOLD INC | 3.48 |
| YAMANA GOLD INC | 2.46 |
| KINROSS GOLD CORP | 2.45 |
Disclaimer
The data on this website is for your information only. It does not constitute investment advice, or advice on tax or legal matters. Any information provided on this website does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in any of the investment funds or other financial instruments described on this website. Should you have any doubts about the meaning of the information provided herein, please contact your financial advisor or any other independent professional advisor.