iShares has navigated a dynamic Canadian equity landscape in 2025, marked by several key developments. Gold prices surged to unprecedented highs, fueling exceptional performance in the materials sector. This “golden tide” significantly benefited both ETFs we cover below.
The Bank of Canada implemented aggressive monetary policy easing, cutting rates to 2.50% as of September 2025, with market expectations for potential further cuts by year-end. This accommodative stance has supported equity valuations and dividend-paying stocks.
TSX record-breaking performance has seen the index reaching multiple all-time highs throughout 2025. It’s been driven by materials, technology, and financial sector strength.
One of the two ETFs below represents a superior investment choice for Canadian equity exposure. It provides concentrated exposure to Canada’s highest-quality, most liquid companies through the S&P/TSX 60 Index. Its exceptionally low 0.18% management expense ratio (MER) compares very favourably to the other fund’s 0.50% expense ratio. A lower MER delivers significant cost savings that compound over time and enhances long-term returns.
ISHARES MSCI CANADA INDEX FUND (New York symbol EWC; buy or sell through brokers; ca.ishares.com) holds the stocks in the Morgan Stanley Capital International Canada Index.
The fund has a 0.50% MER and has a yield of 1.7%. It began trading for investors on March 12, 1996.
The ETF’s top holdings are Royal Bank, 7.9%; Shopify, 6.9%; TD Bank, 5.2%; Enbridge, 4.1%; Brookfield Corp., 3.6%; Bank of Montreal, 3.6%; Agnico Eagle Mines, 3.1%; Bank of Nova Scotia, 3.0%; CIBC, 2.9%; CPKC, 2.6%; and Canadian Natural Resources, 2.6%.
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S&P/TSX 60 Index ETF (see below). You’ll pay about a third as much in management fees, while holding essentially the same stocks.
iShares is a better choice for your hard-earned money
ISHARES S&P/TSX 60 INDEX ETF (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) is a good low-fee way to buy the top companies listed on the TSX. Specifically, the fund’s holdings represent the S&P/TSX 60 Index. It focuses on the 60 largest, most heavily traded stocks on the exchange.
The ETF began trading on September 28, 1999. Investors pay an MER of just 0.18%. The units give you a 2.6% yield.
The S&P/TSX 60 Index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few companies we would not include.
The quality of the ETF’s holdings should drive your future gains: its top stocks are Royal Bank, 8.5%; Shopify, 7.8%; TD Bank, 5.5%; Enbridge, 4.4%; Brookfield Corp., 4.3%; Bank of Montreal, 3.8%; Agnico Eagle Mines, 3.3%; Bank of Nova Scotia, 3.3%; and CIBC, 3.1%.
Recommendation in Canadian Wealth Advisor: iShares MSCI Canada Index Fund is a sell in favour of the iShares S&P/TSX 60 Index ETF.
