Each month, we check in on the performance of the largest Canadian stock exchange-traded 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 stock ETFs, the top performer last month was the C$17.9 billion Vanguard FTSE Canada All Cap Index ETF VCN, which gained 3.16%. The bottom performer was the C$24 billion iShares Core MSCI EAFE IMI Index ETF XEF, which gained 0.92%.
Here’s more about the performance of the largest stock ETFs.
Vanguard S&P 500 Index ETF VFV
- : GoldMorningstar Medalist Rating
- : US EquityMorningstar Category
In August, the Vanguard S&P 500 Index ETF rose 1.49%, while the average US equity fund gained 1.07%. The fund outperformed 56% of its peers. The C$35.3 billion fund has climbed 21.08% over the past 12 months, outperforming the average fund in its category, which rose 16.61%. The Vanguard fund, launched in November 2012, has climbed 21.72% over the past three years annualized and 14.59% annualized over the past five years.
iShares Core S&P/TSX Capped Composite Index ETF XIC
- : GoldMorningstar Medalist Rating
- : Canadian EquityMorningstar Category
In August, the iShares Core S&P/TSX Capped Composite Index ETF rose 3.09%, while the average Canadian equity fund gained 1.36%. The fund outperformed 78% of its peers. The C$34.6 billion fund has climbed 29.81% over the past 12 months, outperforming the average fund in its category, which rose 23.14%. The BlackRock fund, launched in February 2001, has climbed 24.66% over the past three years annualized and 15.20% annualized over the past five years.
BMO S&P 500 Index ETF ZSP
- : GoldMorningstar Medalist Rating
- : US EquityMorningstar Category
In August, the BMO S&P 500 Index ETF rose 1.54%, while the average US equity fund gained 1.07%. The fund outperformed 61% of its peers. The C$28.8 billion fund has climbed 21.18% over the past 12 months, outperforming the average fund in its category, which rose 16.61%. The BMO fund, launched in November 2012, has climbed 21.72% over the past three years annualized and 14.58% annualized over the past five years.
iShares Core MSCI EAFE IMI Index ETF XEF
- : GoldMorningstar Medalist Rating
- : International EquityMorningstar Category
The C$24 billion iShares Core MSCI EAFE IMI Index ETF rose 0.92% in August. The gain on the fund beat the 0.81% gain on the average fund in the international equity category, outperforming 60.00% of its peers. Over the past 12 months, the BlackRock fund rose 22.30%, while the average fund in its category rose 19.36%. The fund, launched in April 2013, has climbed 19.08% over the past three years annualized and 10.82% annualized over the past five years.
iShares S&P/TSX 60 Index ETF XIU
- : GoldMorningstar Medalist Rating
- : Canadian EquityMorningstar Category
In August, the iShares S&P/TSX 60 Index ETF rose 2.30%, while the average Canadian equity fund gained 1.36%. The fund outperformed 61% of its peers. The C$22.6 billion fund has climbed 28.43% over the past 12 months, outperforming the average fund in its category, which rose 23.14%. The BlackRock fund, launched in September 1999, has climbed 23.88% over the past three years annualized and 14.83% annualized over the past five years.
iShares Core Equity ETF Portfolio XEQT
- : SilverMorningstar Medalist Rating
- : Global EquityMorningstar Category
The C$22.4 billion iShares Core Equity ETF Portfolio rose 1.85% in August. It beat the 1.14% gain on the average fund in the global equity category, outperforming 76.00% of its peers. The fund lagged its benchmark, the S&P/TSX Capped Composite Index, by 1.25 percentage points.
Over the past 12 months, the BlackRock fund rose 24.49%, while the average fund in its category rose 17.25%. The fund, launched in August 2019, has climbed 21.82% over the past three years annualized and 13.14% annualized over the past five years.
Vanguard Morningstar US Total Market Index ETF
VUN
- : GoldMorningstar Medalist Rating
- : US EquityMorningstar Category
The Vanguard Morningstar US Total Market Index ETF gained 1.52% in August, outperforming the average fund in the US equity category, which rose 1.07%. The C$19.8 billion fund has gained 20.96% over the past 12 months, while the average fund in its category is up 16.61%. The Vanguard fund, launched in August 2013, has climbed 21.28% over the past three years annualized and 13.44% annualized over the past five years.
BMO S&P/TSX Capped Composite Index ETF ZCN
- : GoldMorningstar Medalist Rating
- : Canadian EquityMorningstar Category
The C$18.6 billion BMO S&P/TSX Capped Composite Index ETF rose 3.09% in August. It beat the 1.36% gain on the average fund in the Canadian equity category, outperforming 78.00% of its peers. Over the past 12 months, the BMO fund rose 29.81%, while the average fund in its category rose 23.14%. The fund, launched in May 2009, has climbed 24.66% over the past three years annualized and 15.20% annualized over the past five years.
Vanguard FTSE Canada All Cap Index ETF VCN
- : GoldMorningstar Medalist Rating
- : Canadian EquityMorningstar Category
In August, the Vanguard FTSE Canada All Cap Index ETF rose 3.16%, while the average Canadian equity fund gained 1.36%. The fund outperformed 81% of its peers. The C$17.9 billion fund has climbed 29.21% over the past 12 months, outperforming the average fund in its category, which rose 23.14%. The Vanguard fund, launched in August 2013, has climbed 24.68% over the past three years annualized and gained 15.36% annualized over the past five years.
Vanguard All-Equity ETF Portfolio VEQT
- : GoldMorningstar Medalist Rating
- : Global EquityMorningstar Category
The C$17.2 billion Vanguard All-Equity ETF Portfolio rose 2.08% in August. It beat the 1.14% gain on the average fund in the global equity category, outperforming 84% of its peers. The fund beat its benchmark, the FTSE Global All Cap Index, by 0.48 percentage points.
Over the past 12 months, the Vanguard fund rose 24.80%, while the average fund in its category rose 17.25%. The fund, launched in January 2019, has climbed 21.95% over the past three years annualized and 13.19% annualized over the past five years.
