Regardless of a shaky begin to the 12 months, the TSX Composite Index continues to make new all-time highs in 2025. Cooling inflationary pressures and better-than-expected financial development prospects are giving buyers lots to cheer about.
With the economic system holding regular and confidence creeping again, now is likely to be the time to have a look at broad-based alternatives quite than betting closely on one or two names. Change-traded funds (ETFs) make that doable by packaging high Canadian shares right into a single funding you should buy with a click on. You get diversification, decreased single-stock threat, and publicity to total sectors shifting in the appropriate route. Let’s take a better take a look at three high Canadian ETFs that provide a sensible technique to make investments on this TSX rally.
BMO Equal Weight Banks Index ETF
If you need an easy technique to spend money on the Canadian banking sector, BMO Equal Weight Banks Index ETF (TSX:ZEB) delivers precisely that. It focuses totally on Canada’s largest banks, holding Nationwide Financial institution, Canadian Imperial Financial institution of Commerce, Toronto-Dominion Financial institution, Royal Financial institution of Canada, Financial institution of Nova Scotia, and Financial institution of Montréal in equal proportions.
As of June 30, 2025, ZEB ETF traded with web property of practically $4 billion and supplied a 3.8% annualized distribution yield. Within the 12 months led to June 2025, it delivered a 37% return, benefiting from falling rates of interest and a rebound in mortgage development.
The sturdy efficiency was fueled by strong earnings throughout the sector, bettering credit score high quality, and better-than-expected financial knowledge. Every financial institution has been supported by greater fee-based income and steady mortgage demand.
General, the Canadian banking sector’s lengthy historical past of stability, mixed with continued dividend development and enlargement into wealth administration and digital banking, makes ZEB a strong ETF choose for looking for steady returns whereas using the TSX’s bullish momentum.
iShares S&P/TSX Capped Info Know-how Index ETF
From conventional finance, let’s transfer to Canada’s fast-growing know-how shares. iShares S&P/TSX Capped Info Know-how Index ETF (TSX:XIT) mirrors the efficiency of Canada’s high tech corporations, together with Shopify, Constellation Software program, CGI, and Celestica.
On the finish of June 2025, this ETF managed $590 million in property and posted a large 37.8% return over the previous 12 months.
The ETF’s surge was primarily powered by sturdy earnings from its high holdings. Shopify continued its development in e-commerce options, Constellation Software program expanded by means of acquisitions, and Celestica benefited from rising demand in electronics manufacturing. These traits pushed the fund’s price-to-earnings ratio to round 43, reflecting the market’s high-growth expectations.
With Canada’s tech sector increasing into synthetic intelligence, cloud options, and superior manufacturing, XIT ETF presents a focused technique to faucet into long-term innovation traits whereas maintaining diversification throughout the sector.
iShares S&P/TSX 60 Index ETF
My final ETF choose presents instantaneous publicity to Canada’s high large-cap shares. iShares S&P/TSX 60 Index ETF (TSX:XIU) is the nation’s largest and most liquid ETF, with $16.9 billion in property as of June 30. It at present holds 61 corporations, together with RBC, TD, Enbridge, Shopify, and Canadian Pacific Kansas Metropolis. The ETF returned 26% within the 12 months led to June 2025 and at present presents a 2.7% distribution yield.
Its current efficiency is principally supported by power within the banking, power, and know-how sectors. Its dependable quarterly distributions make it much more engaging for income-focused buyers, whereas the diversified holdings scale back the chance of sector-specific downturns.
For buyers wanting one core holding to anchor their portfolio in the course of the TSX’s record-breaking run, XIU stays a reliable selection among the many high Canadian ETFs to purchase in 2025.
