Each month, we check in on the performance of the largest Canadian active exchange-traded funds. While passive ETFs track an index, active ETFs have managers who decide which investments to own. Like index-tracking ETFs, active ETFs trade on an exchange and are typically lower-cost than traditional actively managed mutual funds.
When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.
Out of the 10 largest Canadian active ETFs, the top performer last month was the C$20.1 billion iShares Core Equity ETF Portfolio XEQT, which gained 2.15%. The bottom performer was the C$9.7 billion Fidelity Tactical High Income Fund FTHI, which lost 0.76%.
Here’s more about the performance of the largest active ETFs.
PIMCO Monthly Income Fund (Canada) PMIF
- : GoldMorningstar Medalist Rating
- : Multi-Fixed IncomeMorningstar Category
The C$39.2 billion PIMCO Monthly Income Fund (Canada) rose 0.49% in June. The gain on the fund was shy of the 0.82% gain on the average fund in the multi-fixed income category, leaving it in the 32nd percentile for performance. The fund beat its benchmark, the Bloomberg US Aggregate Bond Index, by 0.39 percentage points.
Over the past year, the PIMCO fund rose 5.52%, while the average fund in its category rose 5.33%. The fund, launched in September 2017, has climbed 6.44% over the past three years annualized and gained 3.22% annualized over the past five years.
iShares Core Equity ETF Portfolio XEQT
- : SilverMorningstar Medalist Rating
- : Global EquityMorningstar Category
The iShares Core Equity ETF Portfolio gained 2.15% in June, underperforming the average fund in the global equity category, which rose 4.90%. The fund placed in the 57th percentile for performance and beat its benchmark, the S&P/TSX Capped Composite Index, by 1.65 percentage points.
The C$20.1 billion fund has gained 29.30% over the past year, while the average fund in its category is up 22.25%. The BlackRock fund, launched in August 2019, has climbed 22.29% over the past three years annualized and gained 13.92% annualized over the past five years.
Vanguard All-Equity ETF Portfolio VEQT
- : GoldMorningstar Medalist Rating
- : Global EquityMorningstar Category
The Vanguard All-Equity ETF Portfolio gained 2.04% in June, underperforming the average fund in the global equity category, which rose 4.90%. The fund placed in the 62nd percentile for performance and lagged its benchmark, the FTSE Global All Cap Index, by 0.20 percentage points.
The C$15.9 billion fund has gained 30.01% over the past year, while the average fund in its category is up 22.25%. The Vanguard fund, launched in January 2019, has climbed 22.41% over the past three years annualized and gained 13.83% annualized over the past five years.
Fidelity All-in-One Balanced ETF FBAL
- : GoldMorningstar Medalist Rating
- : Global Neutral BalancedMorningstar Category
The Fidelity All-in-One Balanced ETF gained 1.27% in June, underperforming the average fund in the global neutral balanced category, which rose 2.82%. The C$13.4 billion fund has gained 16.41% over the past year, while the average fund in its category is up 14.72%. The Fidelity International fund, launched in January 2021, has climbed 16.02% over the past three years annualized and gained 10.11% annualized over the past five years.
Fidelity Canadian Large Cap Fund FCLC
- : SilverMorningstar Medalist Rating
- : Canadian Focused EquityMorningstar Category
In June, the Fidelity Canadian Large Cap Fund rose 0.13%, while the average Canadian focused equity fund gained 3.33%. The fund placed in the 82nd percentile for performance and lagged its benchmark, the S&P/TSX Composite Index, by 0.38 percentage points.
The C$12.9 billion fund has climbed 9.67% over the past year, underperforming the average fund in its category, which rose 25.38%. The Fidelity International fund, launched in May 2023, has gained 12.94% over the past three years annualized.
RBC North American Value Fund RNAV
- : NeutralMorningstar Medalist Rating
- : Canadian Focused EquityMorningstar Category
The RBC North American Value Fund gained 0.86% in June, underperforming the average fund in the Canadian focused equity category, which rose 3.33%. The C$11.3 billion fund has gained 22.63% over the past year, while the average fund in its category is up 25.38%. The RBC fund, launched in March 2023, has gained 20.18% over the past three years annualized.
Fidelity Greater Canada Fund FCGC
- : GoldMorningstar Medalist Rating
- : Canadian Focused EquityMorningstar Category
In June, the Fidelity Greater Canada Fund rose 0.48%, while the average Canadian focused equity fund gained 3.33%. The fund placed in the 73rd percentile for performance and performed roughly in line with its benchmark, the S&P/TSX Composite Index.
The C$11 billion fund has climbed 21.70% over the past year, underperforming the average fund in its category, which rose 25.38%. The Fidelity International fund, launched in May 2023, has gained 14.82% over the past three years annualized.
Fidelity Global Equity+ Fund FGEP
- : GoldMorningstar Medalist Rating
- : Global EquityMorningstar Category
The C$10.8 billion Fidelity Global Equity+ Fund rose 1.47% in June. The gain on the fund was shy of the 4.90% gain on the average fund in the global equity category, leaving it in the 81st percentile for performance. The fund lagged its benchmark, the MSCI ACWI-Enhanced Index, by 0.70 percentage points.
Over the past year, the Fidelity International fund rose 31.29%, while the average fund in its category rose 22.25%. The fund launched in May 2024.
Vanguard Growth ETF Portfolio VGRO
- : GoldMorningstar Medalist Rating
- : Global Equity BalancedMorningstar Category
In June, the Vanguard Growth ETF Portfolio rose 1.74%, while the average global equity balanced fund gained 3.71%. The fund placed in the 48th percentile for performance and lagged its benchmark, the Bloomberg Global Aggregate Index, by 0.53 percentage points.
The C$10.5 billion fund has climbed 24.42% over the past year, outperforming the average fund in its category, which rose 19.27%. The Vanguard fund, launched in January 2018, has climbed 18.57% over the past three years annualized and gained 11.06% annualized over the past five years.
Fidelity Tactical High Income Fund FTHI
- : GoldMorningstar Medalist Rating
- : Tactical BalancedMorningstar Category
The C$9.7 billion Fidelity Tactical High Income Fund fell 0.76% in June. The fund lagged its benchmark, the S&P 500 Index, by 2.77 percentage points. Over the past year, the Fidelity International fund rose 17.16%. The fund launched in May 2024.
