11 best TSX ETFs to buy

Highlights

• As adherence to Environmental, Social and Governance (ESG) norms emerge, it gives an additional perspective to look at for investors
• One of these exchange-traded funds returned 37.54 per cent over a year
• One of these ETFs held an ROE of 30.94 per cent and most of these ETFs have a history of dividend payments

Investing in exchange-traded funds (ETF) can give the investors an additional perspective to look at stocks and other asset classes in different geographies and markets across the globe.

The S&P/TSX 60 Index posted a year-to-date (YTD) return of 18.9 per cent, whereas one of these ETFs delivered a return of 17.28 per cent on a YTD basis.

These ETFs have recently paid dividends and posted positive return ratios. On that note, let us explore some top ETFs to buy.

1. NBI Sustainable Global Equity ETF (TSX:NSGE)

The NBI Equity ETF was launched on March 4, 2020, and is domiciled in Canada. The ETF is managed by Daniel Roarty and follows an active style of investing. NSGE held a market cap of C$ 335.75 million on August 23, 2021.

Some of the top holdings of this global equity ETF constitute cash, MSCI Inc, Waste Management Inc, Bio Rad Laboratories, etc.

The investors of NSGE are expected to be paid an annual dividend of C$ 0.651 per share, the ex-date being December 24, 2021.  The ETF posted a price-to-earning (P/E) ratio of 28.3 and a return on equity (ROE) of 19.06 per cent on August 23, 2021, for their investors.

The traded price of the NBI Sustainable fund closed at C$ 39.97 apiece on August 23, 2021. On August 20, 2021, it reached its 52-week high of C$ 40.09. In the last nine months, it expanded by roughly 20 per cent.

Copyright © 2021 Kalkine Media

2. iShares ESG MSCI Canada Leaders Index ETF (TSX:XCLR)

This ESG index fund is designed to match up to the performance of the MSCI Canada ESG Leaders Index.  iShares ESG MSCI was launched on March 5, 2021, and managed by the BlackRock Asset Management team.

The ETF invests in equities and is domiciled in Canada, and follows a passive investment style.

iShares Index ETF held a market cap of C$ 2.24 million on August 23. The fund managed a total net asset of C$ 2.22 million as of July 31, 2021. Some of the top holdings include Shopify Inc, Bank of Nova Scotia, Bank of Montreal, etc.

The investors of the index fund enjoyed quarterly dividends of C$ 0.244 paid on June 30, 2021. The dividend yield stood at 2.18 per cent on August 23, 2021.  iShares Index ETF posted a P/E ratio of 19 and an ROE of 13.62 per cent on August 23, 2021.

Stocks of iShares Index ETF closed at C$ 44.84 on August 23. On August 11, 2021, it reached its 52-week high of C$ 45.1.  On a quarter-to-date (QTD) basis, it expanded by nearly three per cent. 

Also Read: 5 best TSX ETFs to buy in Canada 

3. Invesco S&P 500 ESG Index ETF (TSX:ESG)

Invesco S&P 500 ESG Index ETF follows a passive management approach and was launched on February 14, 2020. This is a team-managed ETF with total net assets of C$ 46.75 million as of July 31 and held a market cap of C$ 48.11 million on August 23.

Some of the top holdings of the fund include Apple Inc, Microsoft Corporation, Amazon.com, etc.

Invesco ETF rolled out quarterly dividends of C$ 0.086 on July 7, 2021, to its investors. The index fund also held a P/E ratio of 26.7, an ROE of 30.94 per cent, and a return on assets (ROA) of 10.58 per cent.

It closed at C$ 29.08 on August 23 and traded 31 per cent above its 52-week low of C$ 22.19 (September 21, 2020). The price increased by close to 20 per cent on a year-to-date (YTD) basis.

4. BMO MSCI USA ESG Leadership Index ETF (TSX:ESGY)

The Leadership Index ETF held a market cap of C$ 896.79 million and an NAV of C$ 40.43 on August 23.  BMO MSCI USA ESG Leadership Index ETF was launched on January 21, 2020, and managed by Robert Bechard.

The ETF follows a passive management approach with a total net asset of C$ 1.74 billion as of July 31. It returned 29.33 per cent in the past year. Some of its well-known holdings are Microsoft Corporation, Tesla Inc, NVIDIA Corporation, etc.

On the valuation metrics, BMO Leadership Index ETF held a P/E ratio of 28.2, an ROE of 29.57 per cent, and an ROA of 10.79 per cent on August 23. The ETF rolled out quarterly dividends of C$ 0.12 to its investors on July 6, 2021. The dividend yield stood at 1.186 per cent.   

The share price of the ETF closed a C$ 40.48 on August 23 that traded 32 per cent above its 52-week low of C$ 30.59 (October 29, 2020).

5. iShares ESG Growth ETF Portfolio (TSX:GGRO)

iShares ESG Growth ETF Portfolio invests primarily in equity and fixed-income securities. The ETF is managed by the asset management team of Blackrock and was launched on September 2, 2020. GGRO stood with a NAV of C$ 47.51 and a market cap of C$ 28.74 million on August 23.

As of July 31, 2021, the fund’s total net asset stood at C$ 25.29 million. The fund’s performance can be tracked with a YTD return of 11.56 per cent.

The ETF investors enjoyed an ROE of 21.29 per cent and an ROA of 7.69 per cent on August 23, while it rolled out a quarterly dividend of C$ 0.173 per share on June 30, 2021.   

Stocks of iShares ETF Portfolio closed at C$ 47.51 on August 23. On a QTD basis, it expanded by roughly 4 per cent. 

Also Read: 7 ESG ETFs to buy for responsible investing

6. BMO Women in Leadership Fund (TSX:WOMN)

This leadership fund seeks to address and promote gender diversity investing. BMO Women in Leadership Fund is managed by Lutz Zeitler, Tyler Hewlett and was launched on May 29, 2018. The fund held a NAV of C$ 30.72 and a market cap of C$ 3.08 million on August 23.

Some of the prominent holdings of the fund are Microsoft Corporation, Amazon.com, Adobe Inc, VISA Inc, etc. BMO Women returned 24.78 per cent in the past year.

The BMO leadership Fund held a P/E ratio of 27.4, an ROE of 17.53 per cent, and an ROA of 6.5 per cent.  The fund's share price closed at 30.8 on August 23.

7. Horizon Global Sustainability Leaders Index ETF (TSX:ETHI)

The index ETF replicates the performance of global large-cap companies that are climate change leaders. Horizon Global Sustainability Leaders Index ETF is a company-managed fund that was launched on October 31, 2018.

The ETF held a market cap of C$ 85.81 million on August 23, and the fund’s total net asset was C$ 81.81 million on July 31, 2021.

ETHI delivered a performance of 37.54 per cent over the past year, whereas it returned 15.03 per cent on a YTD basis.

The investors of the fund were paid quarterly dividends of C$ 0.114 on July 13, 2021. As per the valuation metrics, Horizon ETF posted a P/E ratio of 26.9, an ROE of 26.6 per cent, and an ROA of 9.69 per cent.

The fund's share price closed at C$ 49.25 on August 23. On June 16, 2021, it reached its 52-week high of C$ 50.55.

8. Mackenzie Maximum Diversified All World Developed Index ETF (TSX:MWD)

The Mackenzie Index ETF invests in the equity segment of the developed financial markets around the world. Mackenzie Maximum Diversified All World Developed Index ETF, managed by Doug Kean and Mathew Cardillo, launched on September 7, 2016.

The fund follows an active management approach. It held a market cap of C$ 485 million on August 23. The fund’s total net asset stood at C$ 471.33 million as of July 31, 2021.

On the performance parameter, the fund delivered a one-year return of 14.37 per cent and a three-year return of 9.28 per cent.

Mackenzie Index ETF rolled out quarterly dividends of C$ 0.09 on June 29, 2021. The dividend yield stood at 0.848 per cent. The ETF held an ROE of 15.94 per cent, a P/E ratio of 24.3 and an ROA of 5.68 per cent (at the time of writing).

The fund’s stock price closed at C$ 31.09 on August 23.

Also Read: 4 high monthly dividend-paying ETFs to buy right now

9. First Trust NASDAQ Clean Edge Green Energy ETF (TSX:QCLN)

This dividend-paying ETF stood with a market cap of C$ 13.13 million and a NAV of C$ 27.06 on August 23. On July 8, 2021, quarterly dividends of C$ 0.01 per share were issued to its unitholders.

The investors of First Trust ETF enjoyed a P/E ratio of 38.8 and an ROE of 6.25 per cent on August 23.

First Trust NASDAQ Clean Edge Green Energy ETF was launched on October 30, 2014. It invests in equities based in the US. The fund delivered a return of 11.54 per cent in the one-year period.

The stock price of the ETF closed at C$ 26.8 on August 23.

10. TD Morningstar ESG International Equity Index ETF (TSX:TMEI)

TD Morningstar Index ETF has some of its top holdings, including investments in Roche Holding, Novartis, Unilever Plc, Sony Group, etc. 

The fund is domiciled in Canada and managed by Alexandar Sandercock, Dino Vevaina and Uzair Noorudin, following a passive management approach. The market cap of the index fund on August 23 stood at C$ 15.3 million.

Overall, on a YTD basis, the fund delivered a return of 7.44 per cent. A quarterly dividend of C$ 0.06 was rolled out on July 7, 2021.

On August 20, 2021, it reached its 52-week high of C$ 16.98, and on August 23, the stock price of the ETF closed at C$ 17.

11. Harvest Clean Energy ETF (TSX:HCLN)

The energy ETF launched on January 14, 2021, had a market cap of C$ 67.73 million on August 23. Harvest Clean Energy ETF invests in US-based equities, while the fund is domiciled in Canada.

The P/E ratio of the Harvest ETF stood at 24.6, while the ROE was 7.24 per cent and the ROA was 2.61 per cent.

The traded price of the fund closed at C$ 15.22 on August 23, which traded 29 per cent below its 52-week high of C$ 21.56 (January 25, 2021). However, in the last three months, it increased by only eight per cent.

Bottom line:

ETFs can allow investors to invest in equity, bond, and other asset classes that trade in financial markets across the globe, which otherwise may not be possible to invest in directly.