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Invest in the Top Canadian Stocks With This ETF
It has a small expense ratio of 0.06%, which will ensure that fees won’t take a big chunk out of your overall returns. And the fund focuses on sectors which shouldn’t be very volatile. Financial stocks account for one-third of the ETF’s holdings, followed by energy stocks (16%) and materials and industrials each make up around 13%. Tech, which is often the most volatile sector, represents a little less than 10% of the ETF’s portfolio.
Among the top holdings are big-name Canadian stocks such as Royal Bank of Canada (TSX:RY)(NYSE:RY), Shopify (TSX:SHOP)(NASDAQ:SHOP), and Toronto-Dominion Bank (TSX:TD)(NYSE:TD).
The ETF provides you with a decent yield as well, of around 2.7%. So in addition to having a broad portfolio, you’ll also get some great recurring income from hanging onto this investment. This year, the ETF has risen by 5% (which isn’t including dividends) and over a five-year period it’s up more than 70%.
While there is plenty of economic uncertainty ahead in the short term, this can make for a good long-term investment to hold in your portfolio for years to come. By having some excellent exposure to Canada’s top companies, you’ll benefit from the country’s long-term growth. And if you have a tax-free savings account, this can be a suitable investment to build your portfolio around.
COMTEX_465817706/2559/2025-05-26T11:13:03