Canadian Exchange Traded Funds ETFs
InvestorsFriend’s one-stop Canadian ETF reference Site provides: (For stock, bond, gold and other ETFs)
- Selected Canadian Exchange Traded Funds (ETFs) and ETF trading symbols
- Fundamental data for each of over 40 selected Canadian ETFs (P/E ratio, P/B ratio and dividend yield on the fund or under-lying index)
- Links to updated P/E ratio, P/B ratio, dividend yield and other information on each ETF or its underlying index.
- Links to each Canadian ETF for an updated price and for news items.
- Management Expense Ratio (MER) of each selected Canadian ETF.
- Includes Canadian Fixed Income Bond Exchange Traded Funds ETFs as well
- Links to the sponsor web site of each ETF for updated fundamentals and where the companies in each ETF and the weight of each company can be seen
- Includes physical Gold ETFs, physical Silver ETFs, Oil ETFs, and Natural Gas ETFs
With this one article a diversified Canadian ETF Exchange Traded Fund portfolio could be selected and purchased within an hour or so. See also our article on selected global ETFs Exchange Traded Funds We have also provided a basic low-fee diversified ETF portfolio using Canadian and global ETFs.
See more explanatory notes below this table.
|TSX Segment Index||Trailing P/E (Click for update)||Dividend Yield % (Click for update)||ETF Stock Symbol and Price as at December 10, ’17||Comments|
|HIGHER YIELDING DIVIDEND CANADIAN EQUITY STOCK ETFs – (updated December 10, 2017)|
|S&P/TSX Capped Financials Index and TSX Financials ETF double bull ETF and TSX Financials single and double bear ETF||P/E 13.9 and P/B = 1.79||2.9% yield
0% HFU, HFD
|XFN $38.86 (0.61% MER)||27 companies in the ETF dominated by the big banks and life insurance companies. XFN Looks somewhat attractive.|
|S&P/TSX Capped Utilities Index||P/E 23.4 and P/B = 1.71||3.5% yield||XUT $23.89 (0.62% MER)||14 companies. Heavily weighted to Fortis and Emera. The Dividend yield is attractive but the P/E is unattractive.|
|S&P/TSX Capped REIT Index||P/E 12.0 and P/B = 1.02||4.9% yield||XRE $16.58 (0.61% MER)||15 REITs. P/E is likely completely unreliable due to IFRS mark to market valuations of properties held by REITs. Dividend is attractive. P/B is neutral in attractiveness because the assets are already marked to market.|
|Vanguard FTSE Canadian Capped REIT Index ETF||P/E 12.5
|3.8% yield||VRE $30.75 (0.38% MER)||18 REITs. P/E and ROE are likely completely unreliable due to IFRS mark to market valuations of properties held by REITs. Dividend is attractive. P/B is neutral in attractiveess. Note the lower MER versus XRE.|
|Vanguard FTSE Canada High Dividend Yield Index ETF||P/E 19.9
|3.2% yield||VDY $34.94 (0.22% MER)||Note the low MER
About 70 companies 64% weighting to financials and 19% to Energy.
|Dow Jones Canada Select Dividend Yield Index||P/E 15.5 and P/B = 1.92||3.6% yield
||XDV $26.29 (0.55% MER)||Appears attractive. About 29 companies in the ETF. There is a heavy exposure to the big bank stocks.|
|Dow Jones Canada Select Value Index||P/E 16.1 and P/B = 1.72||2.5% yield||XCV $26.87 (0.55% MER)||59 companies. There is a heavy weighting in the banks. Appears moderately attractive.|
|S&P/TSX Canadian Dividend Aristocrats Index||P/E 17.1 and P/B = 1.80||3.7% yield||CDZ $26.98 (0.67% MER)||85 companies. None of the companies are heavily weighted. This appears attractive.|
|S&P / TSX Preferred Share Index||not Applicable to Preferred||4.4% yield||CPD $14.21 (0.51% MER)||About 230 preferred share issues. It was not clear what proportion of these preferred shares are rate reset shares. The yield seems attractive but be aware that there is little potential for capital gains.|
|TSX Segment Index||Trailing P/E (Click for update)||Dividend Yield % (Click for update)||ETF Stock Symbol, (Click for updated price)||Comment|
|CANADIAN EQUITY ETFs (December 10, 2017)|
|S&P/TSX Composite index and TSX Composite ETF||P/E 18.8 and P/B = 1.96||2.7% yield||XIC $25.58 (0.06% MER)||249 companies. Appears neutral at best in attractiveness. Has a heavy weighting to volatile finance and energy sectors. Incredibly low management fee.|
|S&P/TSX 60 (Large Cap) Index and TSX 60 ETF and TSX 60 bull ETF and TSX 60 bear ETF||P/E 19.5 and P/B = 2.11||2.6% yield
No dividend on HXU, HIX or HXD
|XIU $24.04 (0.18% MER)||60 companies. A heavy weighting to the large banks and energy companies. This allows broad exposure to the Canadian large cap stock market at a low fee. Appears neutral at best in attractiveness.|
|S&P/TSX Mid and Small Cap Index (Completion Index) and TSX mid-cap ETF||P/E 16.6 and P/B = 1.59||1.9% yield||XMD $25.19 (0.61% MER)||Looks neutral in attractiveness 189 companies.|
|S&P/TSX Small Cap Index and TSX small cap ETF||P/E 17.1 and P/B = 1.26||2.3% yield||XCS $16.20 (0.61% MER)||Looks neutral in attractiveness 195 companies.|
|S&P/TSX Capped Consumer Staples Index||P/E 24.1 and P/B = 2.99||0.8% yield||XST $56.53 (0.61% MER)||Appears unattractive. Only 11 companies mostly convenience, grocery and drug stores.|
|S&P/TSX Capped Energy Index and TSX Energy ETF and TSX Energy double bull ETF and TSX Energy single and double bear ETF||P/E 30.7 and P/B = 1.53||1.7% yield
No dividend on HEU, HIF or HED
|XEG $11.87 (0.62% MER)||39 companies. Looks unattractive but that depends on oil and gas prices, the high P/E was driven by low energy prices in the trailing year.|
|S&P/TSX Capped Information technology Index and TSX Information Technology Tech ETF||P/E 18.8 and P/B = 4.06||0.3% yield||XIT $15.88 (0.61% MER)||Appears neutral in attractiveness – about 20 companies in this ETF|
|S&P/TSX Capped Materials Index TSX Materials ETF||P/E 29.5 and P/B = 1.41||0.5% yield||XMA $12.69 (0.61% MER)||55 companies, looks quite unattractive based on trailing earnings but this can change rapidly|
|Dow Jones Canada Select Growth Index ETF||P/E 28.2 and P/B = 3.01||1.0% yield||XCG $31.30 (0.55% MER)||44 companies appears unattractive.|
|CANADIAN FIXED INCOME BOND ETFs (dated December 10, 2017) For all bond ETFs be aware that the yield to maturity and NOT the cash yield is the best estimate of return, assuming interest rates remain unchanged.|
|Bond Type (Click for updated yield to maturity and to see the individual bonds in the index)||Average Term of Bonds in Years||Average Yield to Maturity before MER on index and cash yield on ETF||ETF Stock Symbol, (Click for updated price)||Comment (Bonds and Bond ETFs are more suitable to tax-sheltered accounts than taxable) ETF cash yield may be higher than the true return you will get because these bonds trade at a premium|
|ishares Canadian Bond ETF (Mix of Government and Corporate)||10.3 years||2.3% YTM
2.8% cash yield
|XBB $31.28 (reduced 0.11% MER as of May 2017)||Appears unattractive and it will fall in price if interest rates rise. This will slowly fall in price if interest rates remain stable.|
|ishares Canadian Corporate Bond ETF||9.0 years||2.9% YTM||XCB $21.36 (0.44% MER)||Not particularly attractive. It will fall in price if the probability of corporate bankruptcies rises, and/or if interest rates rise.|
|ishares Canadian Government Bond ETF||10.8 years||2.1% YTM 2.4% cash yield||XGB $21.75 (0.39% MER)||Not attractive, will fall if interest rates rise.|
|ishares Canadian Long Bond ETF (mix of government and corporate)||22.7 years||2.9% YTM||XLB $24.41 (0.20% MER)||Not a very attractive yield and with its long maturity it will fall heavily if long-term interest rates rise.|
|ishares Canadian Real Return Bond ETF||18.1 years||Real yield 0.49%||XRB $24.37 (0.39% MER)||Real return bonds protect against inflation but pay tiny yields and do not at all protect against a rise in the real (before inflation) interest rates. Real interest rates are near historic lows so that represents a danger with this ETF fund.|
|ishares 1 – 5 years Laddered Corporate Bond Index||3.2 years||2.3% YTM||CBO $18.63 (0.28% MER)||2.3% YTM minus the MER seems unattractive.|
|Vanguard Canadian Short-Term Corporate Bond Index ETF||3.0 years||2.2% YTM||VSC $24.70 (0.11% MER )||2.2% YTM minus the MER seems relatively unattractive.|
|ishares Canadian Short Bond ETF||2.9 years||1.9% YTM||XSB $27.56 (0.11% MER)||Low MER but not very attractive.|
|General comments on Bonds: Bond interest is taxed more heavily than share dividends or capital gains. Therefore they are more suitable for tax-sheltered savings accounts. (RRSP, RESP, Tax Free Savings Account). Bonds, and especially longer term bonds fall in price when interest rates rise. Interest rates are currently still near record lows and therefore there is a high risk that interest rates will rise and that bond prices will fall. The real return bond partly protects against that risk. Corporate Bonds fall in price when corporate profits fall and or whenever corporations are viewed as more risky or when interest rates rise in general. Bond and Bond ETF cash yields can be higher than the underlying yield to maturity – don’t be misled – the offset would be an expected capital loss as the bonds are trading at a premium to their maturity price. See also our articles on bond investing.|
|GOLD AND COMMODITY ETFs (updated December 11, 2017)|
|Commodity Type||P/E Ratio||Yield||ETF Stock Symbol, (Click for updated price||Comment|
|S&P/TSX Global Gold Index TSX Global Gold ETF||P/E 32.0 and P/B =1.33||0.1% yield
No dividends on the bear/bull ETFs
|XGD $11.63 (0.61% MER)||43 Global gold companies. My experience has been that gold companies tend to be often over-priced due to a “lottery ticket” mentality.
P/E is high at this time but that can change quickly
|HBP COMEX® GOLD ETF (HUG)||not applicable||not applicable||HUG $11.39 MER 0.65%||Gold itself as a commodity in Canadian dollars and hedged to remove currency risk. Endeavors to correspond to the performance of the COMEX® gold futures contract for a subsequent delivery month i.e. It does not own physical gold
In a stable market with an upward sloping futures price, it would, by nature, lose money as each futures bought each month tends to be more expensive than the value of the expiring contract being sold.
|iShares Gold Bullion Trust||not applicable||not applicable||CGL $10.75 MER = 0.55%||This is gold itself as a commodity.This Trust owns physical Gold|
|ishares Silver Bullion Fund||not applicable||not applicable||SVR $8.70 MER = 0.66%||This is silver itself as a commodity. Trades in Canadian dollars but it is hedged.This Trust owns physical Silver|
|HBP COMEX® SILVER ETF (HUZ)||not applicable||not applicable||HUZ $8.73 MER 0.65%||Silver as a commodity in Canadian dollars and hedged to remove currency risk. Endeavors to correspond to the performance of the COMEX® silver futures contract for a subsequent delivery month – it does not own physical silver. In a stable market with an upward sloping futures price, it would by nature lose money as each futures bought each month tends to be more expensive than the value of the expiring contract being sold.|
|HBP WINTER NYMEX® CRUDE OIL ETF (HUC)||not applicable||not applicable||HUC $12.01 MER 0.75%||Emulates December contract for light sweet Crude. Priced in Canadian dollars and Hedged. This should go up if December futures price for oil rises. And the reverse.|
|HBP NYMEX® Crude Oil Bull Plus ETF
HBP NYMEX® Crude Oil Bear Plus ETF
|not applicable||not applicable||HOU $7.80 MER 1.15% HOD $7.81 MER 1.15%||2x Bull Attempts to emulate a 200% continuous exposure to the next month’s oil futures contract, 2x Bear Attempts to emulate a 200% continuous exposure to selling the next month oil futures contract. Hedged to Canadian dollars.|
|HBP WINTER NYMEX® NATURAL GAS ETF (HUN)||not applicable||not applicable||HUN $5.74 MER 0.75%||Emulates January contract for Natural Gas. Priced in Canadian dollars and Hedged. This ETF should go up if the January natural gas price rises. And the reverse.|
|HBP NYMEX® Natural Gas Bull Plus ETF||not applicable||not applicable||HNU $4.03 MER 1.15%||2x Bull Attempts to emulate a 200% exposure to the next month Natural gas future. 2x Bear Attempts to emulate a 200% exposure to selling the next month Natural gas future contract. Hedged toCanadian dollars.|
We provide the P/E and dividend yields as of December 10, 2017) But we also provide links so that you can check the latest P/E, P/B, dividend yield and the ETF prices. Therefore this Canadian ETF reference article can be used at any date, not just near the date it was last updated.
Keep in mind that P/E ratios P/B ratios and yields (and the resulting valuation comments) are based on the earnings and dividend information available at a point in time. For example the figures below updated December 10, 2017 would generally reflect Q3 2017 earnings and financials. Ratios are always subject to change as financial results change and as the ETF prices change. You can click to see the updated P/E and dividend yield as earnings get reported and as the ETF prices change.
If the earnings are expected to rise or fall substantially compared to the earnings in the most recent four quarters reported, then the most recent P/E ratio would not be reliable as a valuation indicator. Nevertheless, the trailing P/E ratios are what they are, and investors should find value in being aware of them. It appears that the exchanged traded funds report P/Es that they have often adjusted in some way, presumably to make them more representative. ishares uses the weighted average harmonic mean P/Es of the constituent companies. We understand that such P/Es tend to be lower (and therefore look more attractive) than simply the total earnings of the index divided by its price. But we understand that the harmonic mean P/E is appropriate for use.
Keep in mind that stocks are volatile and a segment that looks attractive on trailing earnings may not be attractive if earnings fall sharply, but the opposite applies if earnings start to rise rapidly.
Please note the special and dangerous nature of leveraged ETFs (2 or three times bull or bear). They are known to perform as expected for short-term holding periods but may not perform as expected over longer holding periods. Click on the leveraged ETF symbols below to see a graph that illustrates the problem. In general they are meant for pure speculation rather than investment. We include commodity ETFs and these too are much more for speculation than investment.
Note also that the P/E, P/B and dividend yields have been taken from the ETF fund web sites. Usually these would very closely match the figures for the under-lying index. At one time the Toronto Stock Exchange used to provide fundamental data for the many indexes that it provides, but it no longer does so.
Also note that a number of the ETFs are called “capped” but in fact the weighting of the largest company is as high as 25% in some cases.
For those interested in Canadian ETFs this should be an excellent reference article. You can bookmark it and also join our free newsletter list to be advised of periodic updates to this table.
These Canadian ETFs trade just like stocks on the Toronto Stock Exchange and the trading symbol is provided. Buying the Exchange Traded Fund gives convenient exposure to the segment or commodity.
With the information above, investors can make a judgment as to the desirability of various segments of the Canadian market and we provide the trading symbol under which each can be purchased. (Or sold short for that matter).
This can help you decide which sectors are most (or least) attractive. (Financial, Energy, Real Estate etc.)
While it can be very difficult to interpret whether a particular P/E , or P/B ratio is attractive or not, it is useful to be aware of these ratios. In theory the P/E ratio of an index should be more meaningful than the P/E for an individual stock since the group of companies that make up an index are less prone to unusual gains and losses since these tend to average out. But in some cases they do not average out and an index P/E could be affected by large unusual gains or losses at individual companies or something unusual that is affecting the entire sector.
In buying or selling any of these Canadian ETFs be cautious about the trading volume and the bid/ask spread. Higher volume ETFs are preferred, all else being equal.
In buying any of these, be careful to double check the Canadian ETF trading symbol with other sources. I believe the symbols above are correct, but please double check. A wrong symbol could lead to to the wrong investment. Also check the latest P/E ratios and dividend yield by clicking the links above. When clicking links check that it goes to the Canadian ETF name that you expect.
Investors may wish to consider the expected growth or contraction of the earnings that are driving the P/E for a particular segment. High growth can justify a high P/E and low or negative growth leads to lower P/E ratios. Also for some industries like mining and real estate, the GAAP earnings may arguably understate sustainable free cash flow therefore justifying a higher P/E. For more on this see our articles on understanding P/E ratios. Possibly, some segments, which may not have a lot of companies in the sector, are affected by one or two companies within the sector having unusual losses or gains.
Shawn Allen, CFA, CMA, MBA, P.Eng.
Last updated: December 11, 2017
This reference article was first published on September 24, 2004 with nine ETFs and has been updated many times since then and also greatly expanded. In all that time, I have never seen any other published list of Canadian ETFs include the P/E ratios.