A broad-market exchange-traded fund (ETF) could make investing easy. It spreads cash throughout dozens, a whole bunch, and even 1000’s of corporations, which helps decrease threat. However some traders need extra management. They wish to know precisely what they personal and why they personal it. That’s the place a small inventory portfolio can work as an ETF different. The catch is focus. Three shares can’t supply the identical safety as a full ETF. So the strongest setup could also be a targeted basket of prime Canadian shares, with an ETF added on the aspect for steadiness.
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CNQ
Canadian Pure Assets (TSX:CNQ) may anchor that basket. The corporate is one in all Canada’s largest oil and fuel producers, with operations throughout Western Canada, the North Sea, and offshore Africa. Canadian Pure has elevated its dividend for 26 straight years, with a 20% compound annual development charge over that interval. That’s an enormous quantity in a cyclical sector. It tells traders administration has handled the dividend as a critical long-term precedence, even via oil crashes and recessions.
The newest outcomes present the size of the enterprise. Within the first quarter of 2026, manufacturing reached about 1.6 million barrels of oil equal per day. Adjusted internet earnings got here in at $2.4 billion, or $1.17 per share. Adjusted funds stream reached $4.4 billion, or $2.10 per share. The corporate returned about $1.5 billion to shareholders through the quarter, together with $1.2 billion in dividends and $300 million in share buybacks.
That makes CNQ a powerful first choose for this mini portfolio. It affords vitality publicity, dividend development, and big money era. The quarterly dividend now sits at $0.625 per share. In fact, the chance is obvious. Oil costs can drop shortly, and vitality shares can fall exhausting when sentiment turns. That’s why CNQ works greatest as one pillar, not the entire plan.
TD
Toronto-Dominion Financial institution (TSX:TD) provides the portfolio a really totally different sort of publicity. TD inventory is one in all Canada’s largest banks, with Canadian banking, U.S. banking, wealth administration, insurance coverage, and wholesale banking operations. TD inventory additionally has a restoration angle. The financial institution has handled strain from U.S. anti-money-laundering points and development restrictions, which damage sentiment across the inventory. That sounds uncomfortable, however it could additionally create alternative if the financial institution repairs belief and rebuilds momentum.
The newest quarter confirmed why TD inventory nonetheless deserves consideration. Within the first quarter of 2026, internet revenue reached $4 billion, up from $2.8 billion a 12 months earlier. Adjusted internet revenue got here in at $4.2 billion, in contrast with $3.6 billion. Adjusted diluted earnings per share (EPS) hit $2.44, up from $2.02. Wholesale Banking stood out, with report adjusted internet revenue of $561 million and report income of $2.5 billion, up 24% 12 months over 12 months.
TD inventory nonetheless carries threat. U.S. regulatory strain, credit score losses, and slower mortgage development may weigh on outcomes. But the inventory provides this portfolio a blue-chip monetary core. It additionally brings dividend revenue and potential upside if traders heat again as much as the financial institution’s turnaround story.
CN
Canadian Nationwide Railway (TSX:CNR) rounds out the portfolio with infrastructure. CN operates one in all North America’s largest rail networks, shifting freight throughout Canada and into the USA. It carries grain, potash, intermodal containers, forest merchandise, metals, vitality merchandise, autos, and shopper items.
Within the first quarter of 2026, income got here in at $4.4 billion, down 1% 12 months over 12 months. Web revenue was $1.1 billion, additionally down 1%. Diluted EPS rose 1% to $1.87, whereas adjusted diluted EPS fell 3% to $1.80. The standout quantity was free money stream, which climbed 44% to $900 million.
CNR provides steadiness as a result of railways have hard-to-replicate belongings and long-term pricing energy. The danger is that freight volumes can weaken if the economic system slows, and prices can strain margins. Nonetheless, CN provides this mini portfolio a defensive industrial spine.
Backside line
A 3-stock portfolio received’t change a broad ETF completely. Collectively, these create a helpful Canadian portfolio with worth, dividends, and long-term development potential. Add a broad ETF beside it, and the plan will get even stronger.
