Key Takeaways:
- Shopify stock has bounced back from its postpandemic slump, after expanding its customer base, product lineup, and geographic reach.
- iShares Canadian Growth Index ETF carries the largest weighting in Shopify stock.
- Funds run by BMO, Fidelity, and Vanguard also carry top weightings.
Shopify SHOP stock has soared by 122% in the past 12 months, and the funds that hold it have reaped ample returns as a result.
The CAD 139 million iShares Canadian Growth Index ETF XCG is making the biggest bet on the stock and allocates 12.4% of its portfolio to the stock. Other top holders include the world’s oldest ETF, the CAD 17.4 billion iShares S&P/TSX 60 Index ETF XIU, as well as several environmental, social, and governance-focused funds.
A Comeback Story
Shopify stock has soared in the past year as its efforts to expand its customer base and line of products have paid off.
The stock was a darling of investors during the coronavirus pandemic, rising 268% between the initial outbreak and its peak in November of 2021. However, shares lost more than 60% of their value over the following year as online shopping returned to being a matter of convenience rather than safety.
Shopify has since expanded its business on multiple axes. Geographically, it has gained a significant and growing customer base in Europe; it has expanded its lineup of products, adding new services such as the Shopify Magic AI tool; and it is increasingly working with larger enterprise clients in addition to its original customer base of small- and medium-sized businesses.
“Shopify strives to be a one-stop shop for small retail businesses, especially those that are e-commerce primarily, only, or first, and has made great strides in addressing the needs of enterprise customers as well,” says Dan Romanoff, senior equity analyst at Morningstar.
Shopify’s expansion has been reflected in blockbuster quarterly earnings reports over the past year.
“Two of the last four quarters have been monstrous, with stock moves of greater than 20% on the news,” says Romanoff, describing the stock’s moves after Shopify’s November 2024 and August 2025 earnings reports.
How Many Funds Hold Shopify Stock?
Out of the 157 funds in the Canadian equity Morningstar Category with over CAD 100 million in assets, 103 hold Shopify stock. Of those 103 funds, 42 have a 5% or higher weighting to the stock, and all but four of the remaining funds have a 2% or higher weighting.
The category’s benchmark, the Morningstar Canada Index, has a 5.9% allocation to Shopify, its second-highest after the Royal Bank of Canada RBC at 7.1%. That’s larger than Apple’s AAPL 5.7% weighting in the comparable Morningstar US Market Index.
Out of the 32.6% return that the Morningstar Canada Index notched over the past year, Shopify contributed 4.3 points, according to data from Morningstar Direct. That’s the most of any stock in the index and more than twice the contribution of Royal Bank of Canada, with 1.9 points.
The Funds with the Largest Holdings in Spotify Stock
IShares Canadian Growth ETF has the largest allocation to the stock of any fund in the Canadian equity category. With a 12.4% weighting, Shopify is the fund’s largest holding. The fund tracks the Dow Jones Canada Select Growth Index, a benchmark of large- and mid-cap Canadian growth stocks. The fund’s 25.8% return over the past year puts it in the 53rd percentile of the category. Shopify stock contributed 10.4 points of that return, far more than any other stock.
Out of the 10 funds with the largest weightings to Shopify stock, the biggest by far is the CAD 17.4 billion iShares S&P/TSX 60 Index ETF, which tracks a market-cap-weighted index of large Canadian stocks.
Morningstar analyst Ryan Jackson says its “simple formula breeds a top-heavy portfolio, but it should be hard to beat long term.”
The fund’s 7.5% allocation to Shopify, its second-largest holding, contributed 5.2 points to its 28.8% return over the past year, more than any other stock it owns. That return puts it in the 37th percentile of funds in the category.
There is only one actively managed fund among the largest holders of Shopify stock: the CAD 1.8 billion IG FI Canadian Equity, managed by Fidelity Canada Investment Management’s chief investment officer Andrew Marchese.
“Marchese’s long tenure at the firm (20-plus years) and direct involvement in the research process make him well-positioned to stress-test ideas and help analysts differentiate between fundamental signals and short-term noise,” wrote Luke Richardson, an analyst at Morningstar. “Marchese maintains a diversified portfolio of 50–80 holdings, favoring a holding period of roughly three years for investment ideas. The manager has lightly overweighted consumer-facing sectors and moderately underweighted energy and utilities.”
The fund’s 6.4% allocation to Shopify is the fund’s third-largest holding. Its 25.9% return over the past year puts it in the 58th percentile of funds in the Canadian equity category. Shopify stock contributed 3.3 points to those returns, the second most of any holding, just below the 4.2 points from Agnico Eagle Mines AEM.
ESG Funds in the Mix
Several funds that fall into the ESG category are among the largest holders of Shopify stock, including the second-largest holder of Shopify stock in the screen, the CAD 174 million BMO MSCI Global Selection Equity Index ETF ESGA.
The fund’s 11.4% weighting in Shopify makes the company its largest holding. Its 38.6% return over the past year puts it in the second percentile of funds in the category. Shopify contributed 9.4 points to the fund’s returns over that period, more than any other stock.
Another ESG fund that holds a major stake in Shopify is the CAD 152 million iShares Jantzi Social Index ETF
XEN
“There are not many large tech names in Canada,” says Jennifer Vieno, director of ESG research at Morningstar Sustainalytics. “That is the main reason for Shopify’s large weight in the Jantzi index, which uses the Morningstar Canada Large-Mid Cap universe to select from while excluding any companies that do not satisfy their security selection rules.”
