The 18 Best iShares Canada ETFs to Buy in August 2023 (2023)

If you are an investor in Canada, you may have heard of BlackRock iShares Canada.

It is a family of more than 800 exchange-traded funds (ETFs) that together comprise more than $1.9 trillion in assets under management. iShares is the world's largest provider of ETFs.

MineiShares Canada ETF ListThis overview provides an overview of some of the most relevant Canadian-traded iShares ETFs so you can make a more informed decision when looking for the best Canadian ETFs to add to your investment portfolio.

iShares, the world leader in ETFs, offers more than 800 different product offerings across a wide range of asset classes and investment strategies. iShares is a subsidiary of BlackRock, responsible for issuing and marketing iShares products.

iShares was founded in 2000. iShares' first listings took place on major exchanges, such as the New York Stock Exchange (NYSE).

iShares ETFs are a flexible method for investors to gain exposure to various market segments, including fixed income,emerging marketsand general indicators.

iShares combines low costs with tax-efficient structures to match an index, allowing ETFs to offer investors greater long-term savings thanmutual fund products.

BlackRock Asset Management Canada Limited manages the iShares ETFs. The main objective is to help more and more people experience financial prosperity through long-term sustainability.

iShares ETFs offer diversified, low-cost ways to take advantage of market opportunities and offer the most comprehensive range of ETFs in the country.

This section of my iSharesCanada ETFs List OverviewWe will divide some of the most important ETFs into four categories. I'll briefly discuss each of them to help you understand which ETF product is right for your investment goals.

A better understanding of each category and the ETFs iShares Canada offers for each category will help you decide which products can help you achieve financial freedom while meeting your risk tolerance.

• Heart:XIU.TO
• Distribution income:3,20%
• Assets under management:$10.98 billion
• Management expense ratio:0,18%
• Share price:30,15€
• Performance to date:3,63%

The iShares S&P/TSX 60 Index ETF is a Canadian ETF that aims to provide investors with long-term capital appreciation by tracking the performance of the S&P/TSX 60 Index. The iShares XIU is a medium-risk investment that allocates its total assets among the 60 largest Canadian companies by market capitalization.

It is the oldest ETF in existence in Canada and is diversified across various sectors of the Canadian economy. Despite the diversification, iShares XIU has almost the majority of its funds in Royal Bank of Canada and Shopify Inc. because the companies have significantly larger market capitalizations than other underlying portfolio companies.

iShares XIU's limited focus on 60 companies makes it a relatively risky investment. A drop in the performance of the top ten companies can have a significant impact on the performance and performance of the ETF. However, all of the underlying investments have severe financial constraints that can withstand difficult market conditions.

see my dataiShares XIU review here.

• Heart:XIC.TO
• Distribution income:3,21%
• Assets under management:8.960 million dollars
• Management expense ratio:0,06%
• Share price:31,58€
• Performance to date:4,24%

The iShares Core S&P/TSX Capped Composite Index ETF is another fund that aims to provide investors with long-term capital appreciation by investing 100% in Canadian stocks. iShares XIC allocates its funds to the Canadian stocks that make up the S&P/TSX Capped Composite Index by tracking the performance of the underlying index, net of fees.

iShares XIC is onewholly ETFsThis is a medium risk investment in which the funds are diversified across various Canadian economic sectors. Unlike the XIU ETF, iShares XIC takes a more comprehensive approach to investing in Canadian stocks. It spreads its funds across 219 Canadian stocks, offering greater diversification than iShares XIU.

iShares XIC is an all-equity ETF with zero exposure to fixed income securities. This can make returns and performance volatile in bearish stock environments. However, its diversification across various sectors partially mitigates volatility.

see my dataThe iShares XIC review here.

• Heart:XSP.TO
• Distribution income:1,22%
• Assets under management:$8.34 billion
• Management expense ratio:0,10%
• Share price:46,11€
• Performance to date:14,02%

iShares XSP is another stock ETF offered by iShares. Its goal is to provide investors with long-term capital appreciation by tracking the performance of the S&P 500 Hedged to Canadian Dollars Index, net of fees. The main holding company for iShares XSP is iShares IVV, another ETF offered by BlackRock Canada iShares.

iShares XSP invests in a broad basket of US-domiciled stocks that includes 500 of the largest US companies by market capitalization. The top five iShares XSP holdings are the largest IT companies in the US, with the allocation to the IT sector representing more than 27% of total funds as of January 2021.

iShares XSP's broad diversification across different sectors of the US economy means that the ETF reflects the performance of the US stock market. Its tax efficient structure makes it a significantly cheap investment and eliminates exchange rate volatility by hedging its assets against the Canadian dollar.

see my dataiShares XSP Review Here.

• Heart:A
• Distribution income:2,92%
• Assets under management:$6.16 billion
• Management expense ratio:0,22%
• Share price:32,77€
• Performance to date:7,74%

The iShares Core MSCI EAFE IMI Index ETF aims to provide investors with long-term capital growth by tracking the performance of the MSCI EAFE Investable Market Index, net of fees. It offers investors an internationally diversified portfolio. The ETF allocates its resources to more than 1,500 diversified stocks in Europe, Asia and Australia, giving investors exposure to a basket of stocks outside of North America.

iShares XEF has a quarter of its assets in Japan-based equities and almost 15% of its assets in UK equities. The remaining funds are diversified across many other European and Asian markets.

iShares XEF is an equity ETF that does not offer investors any exposure to fixed income securities. Combined with an asset allocation that favors Japanese and UK stocks over other regions, any volatility in the equity markets of these regions could cause significant volatility in returns for investors.

• Heart:XUU.TO
• Distribution income:1,31%
• Assets under management:$1.79 billion
• Management expense ratio:0,07%
• Share price:ps
• Performance to date:0%

See Also

Canada's Top 45 ETFs for 2023Best BlackRock S&P 500 ETFs in Canada for 2023Best Canada All-in-One ETFs (2023)Top 6 Canada ETFs for 2023

iShares Core S&P US Total Market Index The ETF aims to provide investors with long-term capital growth by tracking the performance of the S&P Total Market Index, net of fees. iShares XUU is essentially a low-cost solution designed as a long-term core investment for investor portfolios, providing exposure to the entire US stock market.

iShares XUU invests primarily in four ETFs issued and managed by BlackRock Canada. All of iShares XUU's underlying ETFs invest in a broad range of stocks, diversified across sectors and market capitalizations, in the US economy.

iShares XUU has more exposure to IT, with 22.68% of its holdings in IT companies. iShares XUU's top three total holdings include Apple Inc. at 4.82%, Microsoft Corp. at 4.45%, and Amazon.com Inc. at 3.31%, as of April 15, 2021.

• Heart:XAW.TO
• Distribution income:1,66%
• Assets under management:1,552 million dollars
• Management expense ratio:2,58%
• Share price:34,07€
• Performance to date:10,97%

The iShares Core MSCI All Country World ex Canada Index ETF is an all-stock ETF that aims to provide its investors with long-term capital appreciation by investing in stocks that make up the MSCI ACWI ex Canada IMI Index, with no fees. Top holdings include six iShares ETFs that invest in a globally diversified portfolio of equities, excluding Canadian equities.

By investing in multiple ETFs that in turn invest in thousands of individual globally diversified stocks, iShares XAW offers investors exposure to globally diversified stocks.

Yet despite its global diversification, iShares XAW invests more than half of its funds in US stocks, around 7% in Japanese stocks, and just over 5% of its funds in Chinese stocks.

iShares XAW performance can show significant volatility in bearish conditions for the US stock market. It could be a viable asset to add to your portfolio if you want to invest in global diversified stocks without exposure to Canadian companies.

see my dataiShares XAW Review Here.

• Heart:XDV.TO
• Distribution income:4,37%
• Assets under management:$1.61 billion
• Management expense ratio:0,55%
• Share price:26,69€
• Performance to date:2,22%

The iShares Canadian Select Dividend Index ETF is an all-stock ETF that aims to provide its investors with long-term capital appreciation by tracking the performance of the Dow Jones Canada Select Dividend Index, net of fees. iShares XDV could be an ideal investment for income-seeking investors who want exposure to a basket of diversified dividend-paying Canadian stocks without having to manually rebalance that portfolio.

iShares XDV focuses its entire fund allocation on the 30 highest performing Canadian companies in the Dow Jones Canada Total Market Index. It means that investors can gain exposure to the largest dividend stocks traded on the TSX through dividends from the underlying stock.

The fund's narrow focus on 30 companies could lead to volatile performance back and forthCapital gains. However, returns are primarily based on dividend income from the underlying investments, offering Canadian investors seeking dividends a viable alternative to building a manual portfolio.

see my dataiShares XDV Review Here.

• Heart:XQQ.TO
• Distribution income:0,35%
• Assets under management:$1.97 billion
• Management expense ratio:0,39%
• Share price:112,2$
• Performance to date:33,41%

iSharesNASDAQ Index 100-ETF(CAD-Hedged) is an ETF that aims to provide investors with long-term capital growth by tracking the performance of the NASDAQ-100 Currency Hedged to Canadian Dollars Index, net of fees. It provides investors with exposure to 100 of the largest NASDAQ-listed non-financial companies by market capitalization.

iShares XQQ could be a great asset to consider if you want to diversify into large-cap US stocks while avoiding exposure to the financial sector. iShares XQQ has almost half of its assets in IT, almost 20% in communications and almost 20% in consumer discretionary.

iShares XQQ is a medium risk investment that is not diversified regionally or across asset classes.

• Heart:XBB.TO
• Distribution income:2,96%
• Assets under management:$5.19 billion
• Management expense ratio:0,10%
• Share price:26,73€
• Performance to date:-0,35%

The iShares Core Canadian Universe Bond Index ETF aims to provide income to investors by tracking the performance of the FTSE Canada Universe Bond Index™, net of fees. iShares XBB effectively provides investors with exposure to a wide range of investment grade Canadian bonds.

iShares XBB is designed as a long-term core holding company that pays out monthly cash distributions to investors. Therefore, iShares XBB can be a great investment for investors looking for income. With no equity exposure, iShares XBB is a very low-risk investment that you should consider adding to your portfolio.

The fund's lack of equity exposure means that your capital growth with the ETF will depend solely on returns from fixed income assets. Your capital invested in the ETF will not increase if there is a significant rally in the global stock markets.

• Heart:XSB.TO
• Distribution income:2,49%
• Assets under management:$2.35 billion
• Management expense ratio:0,10%
• Share price:25,42€
• Performance to date:0,52%

The iShares Core Canadian Short-Term Bond Index ETF aims to provide income to investors by tracking the performance of the FTSE Canada Short-Term Overall Bond Index™. iShares XSB effectively provides exposure to a broad range of investment grade Canadian bonds with relatively shorter maturities ranging from one to five years.

iShares XSB is designed to be a long-term, fundamental investment for investors, making it an excellent investment for income-seeking investors who are not interested in equity investments. The total focus on fixed income means that iShares XSB cannot offer investors capital growth through capital gains.

iShares XSB may be a viable investment to consider if you are looking for a low risk investment that gives you exposure to shorter duration investment grade bonds.

• Heart:XCB.TO
• Distribution income:3,64%
• Assets under management:1.680 million dollars
• Management expense ratio:0,44%
• Share price:18,7$
• Performance to date:1,11%

The iShares Canadian Corporate Bond Index ETF is an ETF that aims to provide income to investors by tracking the performance of the FTSE Canada All Corporate Bond™ Index, without commissions. iShares XCB offers investors exposure to investment grade Canadian corporate sector bonds with a minimum maturity of one year.

iShares XCB aims to provide investors with a consistent and stable environmentpassive incomedrift. It could be a great asset to consider if you want to adjust your exposure to Canadian bonds by focusing solely on investment grade corporate bonds.

iShares XCB gives you greater exposure to bonds with maturities of three to five years and long maturities of more than 20 years. The lack of equity exposure makes it a very low risk investment for income seeking investors.

• Heart:XSH.TO
• Distribution income:3,15%
• Assets under management:$1.19 billion
• Management expense ratio:0,10%

The iShares Core Canadian Short-Term Corporate Bond Index ETF is a mutual fund that aims to generate income by tracking the performance of the FTSE Canada Universe Index and the Maple Short-Term Corporate Bond Index, net of fees. It is a low-cost portfolio of short-term, investment-grade Canadian bonds that typically offer higher yields than government bonds.

iShares XSH pays investors monthly cash payments with low interest rate risk and is designed as a long-term principal investment. Therefore, iShares XSH could be a great investment for investors seeking income with a low tolerance for risk.

iShares XSH invests in corporate bonds with a wide range of maturities, but focuses half of its funds on three-to-five-year and two-to-three-year bonds.

• Heart:XGD.TO
• Distribution income:1,93%
• Assets under management:$996.9 million
• Management expense ratio:0,61%
• Share price:16,23€
• Performance to date:-5,72%

The iShares S&P/TSX Global Gold Index ETF is a fund that aims to provide investors with long-term capital appreciation by tracking the performance of the S&P/TSX Global Gold Index, net of fees. iShares XGD offers investors targeted exposure to a basket of global gold stocks and gold-related producers.

The primary focus on gold-related securities means that iShares XGD can be used to express a global industry view of gold-related companies. The top ten holdings are gold mining and production companies, with almost negligible exposure to other metals. iShares XGD provides some global diversification by allocating funds to gold-related stocks from Canada, the United States and South Africa.

iShares XGD is also a fully equity ETF because it does not allocate money to fixed income assets. The lack of diversification across different sectors means that performance is highly dependent on underlying commodity prices. Significant drops in the price of gold can affect the returns of the underlying investments, creating significant volatility in returns for investors.

However, the fund does not directly invest in physical gold, which provides investors with some protection against fluctuations in commodity prices.

• Heart:CGL.TO
• Distribution income:na
• Assets under management:$984.08 million
• Management expense ratio:0,55%
• Share price:15,14€
• Performance to date:2,09%

The iShares Gold Bullion ETF aims to replicate the price of gold, minus commissions and charges. The ETF is an exclusive game for investors seeking exposure to the price of gold hedged against the Canadian dollar, limiting the volatility caused by exchange rate fluctuations.

iShares CGL offers convenient and profitable exposure to physical gold. It could be a great way to gain exposure to gold cheaply without the up-front cost of buying the rare yellow metal if you want to protect your capital from the effects of inflation.

Gold prices almost always rise when the economy as a whole is in a recession, making iShares CGL an excellent choice for investors seeking safe haven exposure during bear markets. Direct exposure to physical bullion also means that returns are significantly reduced if gold prices fall.

• Heart:XEQT.TO
• Distribution income:2,02%
• Assets under management:1.810 million dollars
• Management expense ratio:0,20%
• Share price:26,1€
• Performance to date:9,49%

The iShares Core Equity ETF Portfolio is an all-in-one portfolio ETF that offers investors a portfolio of locally diversified equity ETFs in a convenient package with a low-cost structure. The ETF invests in four different ETFs offered by BlackRock Canada, which together invest in more than 9,000 individual stocks traded on exchanges around the world.

The ETF allocates almost half of its assets to US stocks, with just over 20% exposure to Canadian stocks and the rest diversified.emerging marketsand the Pacific Ocean. The main holding companies are Apple Inc., Microsoft Corp. and Amazon.com Inc.

Five of the ten largest holding companies come from the IT sector. It is therefore not surprising that iShares XEQT's main asset allocation is in the global IT sector, which represents 18.06% of the fund's total. iShares XEQT is one of the least risky investments to consider due to its significant diversification across regions and sectors.

see my dataThe iShares XEQT review here.

• Heart:XGRO.TO
• Distribution income:1,86%
• Assets under management:$1.62 billion
• Management expense ratio:0,20%
• Share price:24,41€
• Performance to date:7,54%

The iShares Core Growth ETF Portfolio is another all-in-one ETF portfolio that offers investors exposure to a broad basket of US and Canadian based equities and fixed income assets.

iShares XGRO aims to provide investors with long-term capital growth by providing exposure in a single package to a broadly diversified portfolio of stocks by asset class and region.

The low cost structure allows investors to keep more of what they earn. The fund invests primarily in BlackRock Canada ETFs and offers a nearly 80/20 allocation between equities and fixed income assets such as bonds and GICs.

The top stocks in total underlying holdings include Apple Inc. with an asset allocation of 1.74%, Microsoft Corp. with 1.61% and Royal Bank of Canada with 1.24%.

iShares XGRO has a low to medium risk. Exposure to fixed income securities can also limit losses if global stock markets experience bearish conditions.

see my dataiShares XGRO Review Here.

• Heart:XBAL.TO
• Distribution income:2,02%
• Assets under management:$993.58 million
• Management expense ratio:0,20%
• Share price:25,37€
• Performance to date:5,86%

The iShares Core Balanced ETF Portfolio is another all-in-one ETF portfolio that offers investors exposure to a basket of securities diversified across asset classes and regions.

iShares XBAL has traditionally offered investors a 60/40 allocation between equities and fixed income assets. As of April 14, 2021, it owns 63.65% in shares and 36.18% in fixed income securities.

Fund managers may have been tasked with boosting investor returns by capitalizing on the recovery in global stock markets. The main asset allocation is focused ontechnical fieldThis has been the main driver of growth for the US and Canadian stock markets for several months.

The secure way in which the iShares XBAL ETF allocates your funds makes it a low to medium risk investment that you should consider adding to your portfolio.

see my dataiShares XBAL review here.

• Heart:XINC.TO
• Distribution income:2,62%
• Assets under management:$32.68 million
• Management expense ratio:0,20%
• Share price:18,67€
• Performance to date:2,34%

The iShares Core Income Balanced ETF Portfolio is an all-in-one ETF portfolio that is broadly diversified by asset class and across regions in one convenient package. The fund aims to provide investors with long-term capital growth and income by investing primarily in one or more ETFs managed by BlackRock Canada.

iShares XINC offers investors a nearly 80/20 asset allocation between fixed income and equities. Higher exposure to fixed assets means the ETF portfolio is an excellent investment for income-seeking investors with a low tolerance for risk and seeking capital growth through capital gains.

iShares XINC has a low fee structure that allows investors to keep more of what they earn, and the 0.18% management fee covers all underlying ETF management fees.

The cheapest way to buy ETFs is through discount brokers. My top picks in Canada are:

For more information, check out my full review.The best trading platforms in Canada..

final thoughts

ETFs are becoming an increasingly popular option among investors. Many investors prefer ETFs to mutual fund products with similar benefits and features due to the lower costs of ETFs.

iShares is the world's largest provider of ETFs. I hope this overview of the iShares Canada ETF listing provides you with the information you need to make better investment decisions about Canadian ETFs.