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 selected Canadian ETF (P/E ratio, P/B ratio and dividend yield on the fund)
- 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 lists of 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. We also give you the symbols to achieve a broadly balanced portfolio using just one single ETF! It does not get any easier than that!
See more explanatory notes below this table.
Send specific questions to Shawn@investorsfriend.com
|Canadian ETF name:||Trailing P/E (Click for update)||Dividend Yield % (Click for update)||ETF Stock Symbol and Price as at September 23, ’19||Comments|
|HIGHER YIELDING DIVIDEND CANADIAN EQUITY STOCK ETFs – (updated September 23, 2019) Note that the cash distributions on equity ETFs can be surprisingly volatile. The past year’s dividends can be found on Yahoo Finance under historical data, dividends only or in some cases by clicking the links here to the ETF provider.|
|iShares S&P/TSX Capped Financials Index ETF and double bull ETF and double bear ETF||P/E 12.4 and P/B = 1.66||2.7% yield
0% HFU, HFD
|XFN $39.41 (0.61% MER)||27 companies in the ETF dominated by the big banks and life insurance companies. XFN looks attractive.|
|iShares S&P/TSX Capped Utilities Index ETF||P/E 26.2 and P/B = 1.79||3.5% yield||XUT $26.07 (0.62% MER)||16 companies. Heavily weighted to Fortis, Brookfield Infrastructure and Emera. The Dividend yield is attractive but the P/E is not attractive.|
|Vanguard FTSE Canadian Capped REIT Index ETF||P/E 10.9
|3.3% yield||VRE $36.29 (0.39% MER)||18 REITs. P/E and ROE may be completely unreliable due to IFRS mark to market valuations of properties held by REITs. Dividend is attractive. P/B is neutral at best in attractiveness since building values are already marked up to market value.|
|Vanguard FTSE Canada High Dividend Yield Index ETF||P/E 12.7
|4.1% yield||VDY $34.59 (0.22% MER)||Note the low MER
About 56 companies 64% weighting to financials and 23% to oil and gas. Looks attractive.
|iShares Canadian Select Dividend Yield Index ETF||P/E 12.1 and P/B = 1.6||4.1% yield
||XDV $25.44 (0.55% MER)||Appears quite attractive. About 30 companies in the ETF. This dividend ETF is far more evenly weighted by company than the one above but is still 61% financials.|
|iShares Canadian Value Index ETF||P/E 12.2 and P/B = 1.5||3.2% yield||XCV $26.54 (0.55% MER)||47 companies. There is a heavy weighting in the banks and a total of 60% in financials. Appears quite attractive.|
|iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||P/E 14.2 and P/B = 1.7||4.1% yield||CDZ $27.76 (0.67% MER)||82 companies. None of the companies are heavily weighted. This appears reasonably attractive.|
|S&P/TSX Preferred Share Index||not Applicable to Preferred||5.1% yield||CPD $11.98 (0.50% MER)||About 233 preferred share issues. 82% are rate reset issues, 14% are perpetual fixed, the remainder are floating rate. This is quite attractive for the yield.|
|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 (September 23, 2019) Note that the cash distributions on equity ETFs can be surprisingly volatile. The past year’s dividends can be found on Yahoo Finance under historical data, dividends only or in some cases by clicking the links here to the ETF provider.|
|iShares S&P/TSX Capped Composite index ETF||P/E 15.8 and P/B = 1.9||3.0% yield||XIC $26.99 (0.06% MER)||233 companies. Appears neutral in attractiveness. Has a heavy 32% weighting to the financial and 17% to the energy sectors. Incredibly low management fee.|
|iShares S&P/TSX 60 (Large Cap) Index ETF and TSX 60 bull and bear ETFs||P/E 15.8 and P/B = 2.0||2.6% yield
No dividend on HXU, HIX or HXD
|XIU $25.36 (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 in attractiveness.|
|S&P/TSX Mid and Small Cap Index (Completion Index) and TSX mid-cap ETF||P/E 15.4 and P/B = 1.5||2.7% yield||XMD $26.30 (0.61% MER)||This ETF is more diversified. Looks neutral in attractiveness 173 companies.|
|S&P/TSX Small Cap Index and TSX small cap ETF||P/E 12.9 and P/B = 1.1||3.0% yield||XCS $15.23 (0.61% MER)||Looks attractive. 26% weighting to materials (mining) sector and 18% to energy. 207 companies.|
|iShares S&P/TSX Capped Consumer Staples Index ETF||P/E 16.2 and P/B = 2.7||0.8% yield||XST $66.95 (0.61% MER)||Appears neutral in attractiveness. Only 10 companies mostly Couche-Tard and grocery stores.|
|iShares S&P/TSX Capped Energy Index ETF and TSX Energy double bull ETF and TSX Energy double bear ETF||P/E 12.9 and P/B = 1.0||2.3% yield
No dividend on HEU or HED
|XEG $8.96 (0.62% MER)||24 companies. Looks attractive but that depends on oil and gas prices. Huge 50% weighting to CNRL and Suncor|
|iShares S&P/TSX Capped Information technology Index ETF||P/E 37 and P/B = 5.1||0.4% yield||XIT $26.63 (0.61% MER)||Appears unattractive on valuation but includes high growth companies – about 15 companies in this ETF. Extremely concentrated in Constellation Software, CGI and Shopify totally 71%.|
|iShares S&P/TSX Capped Materials Index TSX Materials ETF||P/E 14.0 and P/B = 1.6||0.7% yield||XMA $14.74 (0.61% MER)||49 companies, with 55% weighting to gold companies, looks neutral in attractive based on trailing earnings but this can change rapidly|
|iShares Canadian Growth Index ETF||P/E 23.0 and P/B = 2.9||1.7% yield||XCG $35.59 (0.55% MER)||44 companies appears not attractive although growth may offset the high P/E. Fairly good diversification.|
|CANADIAN FIXED INCOME BOND ETFs (dated September 24, 2019) 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 or assuming a long holding period mimicking holding individual bonds to maturity. See also our comments below.|
|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 is higher than the true return to expect because the bonds held currently mostly trade at a premium|
|ishares Core Canadian Universe Bond Index ETF (Mostly Government and some Corporate)||10.9 years||2.1 YTM
2.8% cash yield
|XBB $32.32 (0.19% MER)||Appears unattractive. But note the very low MER.|
|Vanguard Canadian Corporate Bond Index ETF||7.7 years||2.5% YTM
2.7% cash yield
|VCB $25.65 (0.26% MER)||A reasonably attractive yield.|
|Vanguard Canadian Government Index ETF||11.8 years|| 1.7% YTM
2.5% cash yield
|VGV $26.34 (0.28 MER)||Appears unattractive.|
|ishares Core Canadian Long Term Bond Index ETF (mix of mostly government and some corporate)||22.9 years||2.4% YTM||XLB $26.32 (0.20% MER)||Not a very attractive yield and with its long maturity it will fall heavily if long-term interest rates rise significantly.|
|iShares Canadian Real Return Bond Index ETF||17.3 years||Real yield 0.3%||XRB $25.68 (0.39% MER)||Real return bonds protect against inflation but pay modest yields and do not at all protect against a rise in the real (before inflation) interest rates. Real long-term interest rates are near historic lows so that represents a danger with this ETF fund.|
|Vanguard Canadian Short-Term Corporate Bond Index ETF||3.0 years||2.2% YTM||VSC $24.43 (0.11% MER )||2.2% YTM minus the MER is at least higher than bank account interest. Note the low MER.|
|General comments on Bonds and Bond ETFs: 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. Long-term interest rates are currently 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. Most of almost all Bond ETF are currently holding bonds that on average trade above their maturity value and they WILL suffer capital losses on those holdings. Bond ETF cash distributions are surprisingly volatile. Investors should review the cash distributions in the past year to get a better understanding of the yield. See also our articles on bond investing.|
|GOLD AND COMMODITY ETFs (updated September 24, 2019)|
|Commodity Type||P/E Ratio||Yield||ETF Stock Symbol, (Click for updated price||Comment|
|iShares S&P/TSX Global Gold Index ETF||P/E 66.0 and P/B =1.30||0.5% yield
No dividends on the bear/bull ETFs
|XGD $16.08 (0.61% MER)||38 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 very unattractively high at this time but that can change quickly
|Horizons GOLD Futures Contract Index ETF (HUG)||not applicable||not applicable||HUG $16.08 MER 0.65%||Gold price in Canadian dollars and hedged to remove currency risk. Endeavors to correspond to the performance of the Solactive Gold Front Month MD Rolling Futures Index ER. It does not own physical gold
|iShares Gold Bullion Trust||not applicable||not applicable||CGL $12.76 MER = 0.55%||This is gold itself as a commodity.This Trust owns physical Gold. Hedged to the Canadian dollar.|
|iShares Silver Bullion Fund||not applicable||not applicable||SVR $9.88 MER = 0.66%||This is silver itself as a commodity. Trades in Canadian dollars and it is hedged. This Trust owns physical Silver.|
|Horizons Silver Futures Contract Index ETF (HUZ)||not applicable||not applicable||HUZ $9.80 MER 0.65%||Silver Price ETF in Canadian dollars and hedged to remove currency risk. Endeavors to correspond to the performance of the Solactive Silver Front Month MD Rolling Futures ER. It does not own physical silver.|
|Horizons Crude Oil ETF (HUC)||not applicable||not applicable||HUC $12.22 MER 0.75%||Emulates December contract for light sweet Crude. Priced in Canadian dollars and Hedged. This should go up if the Winter futures price for oil rises. And the reverse.|
|Horizons Betapro Crude Oil 2x Bull ETF||not applicable||not applicable||HOU $5.86 MER 1.15% HOD $4.48 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.|
|Horizons NATURAL GAS ETF (HUN)||not applicable||not applicable||HUN $7.47 MER 0.75%||Emulates Winter 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.|
|Horizons Betapro Natural Gas 2x Bull ETF||not applicable||not applicable||HNU $10.89 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 to Canadian dollars.|
We provide the P/E and dividend yields as of September 23 or 24, 2019) 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 here updated September 24, 2019 would generally reflect Q2 2019 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 exchange 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 very 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.
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.
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: September 24, 2019
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.