Top 10 Best Growth ETF in Canada!

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.

Best growth ETF: performance table

NameMgmnt
Fee
AUM
in M
XEG – Ishares S&P TSX Capped Energy Index ETF0.55%1,986
NXF-B CI First Asset Energy Giants Cov Call ETF0.65%207
NNRG.NE -Ninepoint Energy Fund1.50%413
ZEO – BMO S&P TSX Eql Weight Oil Gas Index0.55%240
NXF – CI First Asset Energy Giants ETF Unhedged0.65%322
QBTL -Agfiq US Mkt Neut A ntibeta CAD Hdg0.50%333
XMA -Ishares S&P TSX Capped Materials ETF0.55%155
XST -Ishares S&P TSX Capped Cons Stpl0.55%196
XGD -Ishares S&P TSX Global Gold Index ETF0.55%1,203
Best Growth ETF – Asset under management and fees January 9th 2023

Name52W
%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%
Best Growth ETF – Asset under management and fees January 9th 2023

    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 NameWeight
    CANADIAN NATURAL RESOURCES LTD25.96%
    SUNCOR ENERGY INC24.12%
    CENOVUS ENERGY INC11.36%
    TOURMALINE OIL CORP6.88%
    IMPERIAL OIL LTD5.66%
    ARC RESOURCES LTD5.01%
    MEG ENERGY CORP2.28%
    CRESCENT POINT ENERGY CORP2.25%
    WHITECAP RESOURCES INC2.17%
    ENERPLUS CORP1.85%

    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
    please visit issuers’ website for up-to-date data

    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

    Rating: 2 out of 5.
    NameWeight (%)
    SUNCOR ENERGY INC26.21
    CANADIAN NATURAL RESOURCES LTD23.48
    CENOVUS ENERGY INC13.50
    TOURMALINE OIL CORP8.97
    IMPERIAL OIL LTD6.47
    ARC RESOURCES LTD5.73
    WHITECAP RESOURCES INC2.40
    MEG ENERGY CORP2.29
    ENERPLUS CORP2.25
    CRESCENT POINT ENERGY CORP2.23

    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 SA8.10
    CANADIAN NATURAL RESOURCES LTD7.57
    SUNCOR ENERGY INC7.40
    EOG RESOURCES INC7.38
    EQUINOR ASA7.17
    CONOCOPHILLIPS6.70
    BP PLC6.58
    EXXON MOBIL CORP6.43
    ENI SPA6.39
    OCCIDENTAL PETROLEUM CORP6.31
    CHEVRON CORP6.27
    PIONEER NATURAL RESOURCES CO6.19
    TOTAL SE6.18
    ECOPETROL SA5.92
    ROYAL DUTCH SHELL PLC5.85
    Please consult issuers’ website for up-to-date data – Best Growth ETF

    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

    Rating: 3 out of 5.
    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.

    NameWeight
    (%)
    MOSAIC9.34
    ARCHER DANIELS MIDLAND9.31
    CORTEVA INC8.49
    BUNGE LTD7.69
    CNH INDUSTRIAL NV7.40
    DEERE6.26
    INTREPID POTASH INC5.78
    TRACTOR SUPPLY5.37
    TYSON FOODS INC CLASS A4.61
    CF INDUSTRIES HOLDINGS INC4.49
    Please consult issuers’ website for up-to-date data – Best Growth ETF

    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
    NameWeight
    EXXON MOBIL CORP9.96
    CHEVRON CORP7.35
    ABBVIE INC6.55
    VERIZON COMMUNICATIONS INC6.07
    MERCK & CO INC4.72
    PHILIP MORRIS INTERNATIONAL INC4.45
    PIONEER NATURAL RESOURCE4.33
    COCA-COLA3.86
    BROADCOM INC3.61
    CISCO SYSTEMS INC3.59
    Please consult issuers’ website for up-to-date data – Best Growth ETF

    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

    NameWeight
    %
    ALIMENTATION COUCHE TARD MULTI VOT27.87
    LOBLAW COMPANIES LTD19.05
    METRO INC16.74
    GEORGE WESTON LTD11.23
    EMPIRE LTD CLASS A7.03
    SAPUTO INC6.29
    PREMIUM BRANDS HOLDINGS CORP3.65
    PRIMO WATER CORP2.93
    Please consult issuers’ website for up-to-date data

    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.

    NameWeight
    NUTRIEN LTD17,47
    BARRICK GOLD CORP12,77
    FRANCO NEVADA CORP8,84
    AGNICO EAGLE MINES LTD8,25
    WHEATON PRECIOUS METALS CORP6,36
    TECK RESOURCES SUBORDINATE VOTING5,53
    FIRST QUANTUM MINERALS LTD5,51
    WEST FRASER TIMBER LTD2,44
    KINROSS GOLD CORP2,20
    CCL INDUSTRIES INC CLASS B1,95

    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.

    NameWeight (%)
    NEWMONT17.88
    BARRICK GOLD CORP14.58
    FRANCO NEVADA CORP11.78
    AGNICO EAGLE MINES LTD10.92
    WHEATON PRECIOUS METALS CORP8.34
    GOLD FIELDS ADR REPRESENTING LTD4.51
    ANGLOGOLD ASHANTI ADR REPTG LTD3.89
    ROYAL GOLD INC3.48
    YAMANA GOLD INC2.46
    KINROSS GOLD CORP2.45

    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.