These Canadian ETFs could make you a smart investor

3 min read | February 05, 2022 12:58 AM AEDT | By Kajal Jain

These Canadian ETFs could make you a smart investor — Image source: © 2022 Kalkine Media®

1. iShares S&P/TSX Capped Energy Index ETF (TSX:XEG)

The iShares S&P/TSX Capped Energy Index ETF, which tracks the S&P/TSX Capped Energy Index, is known to invest in Canadian energy companies and provide exposure to likely capital growth in the long run.

Units of XEG galloped by almost 115 per cent in the past one year. The energy index-focused ETF closed at a value of C$ 13.01 apiece on Wednesday, February 2.

iShares S&P/TSX Capped Energy Index ETF’s performance on the TSX

Also read: CGI (GIB.A) & Open Text (OTEX): 2 TSX tech stocks with rising profits

2. BMO Equal Weight Banks Index ETF (TSX:ZEB)

The BMO Equal Weight Banks Index ETF, which is known to invest in Canadian banks, is an equal-weighted index fund that aims to replicate the performance of a diversified bank index.

The bank index-focused ETF pays a monthly dividend of C$ 0.12 apiece to its unitholders, with a dividend yield of 2.725 per cent, and presently holds a return on equity (ROE) of 16.4 per cent.

Having closed at a price of C$ 42.11 apiece on Wednesday, units of this bank ETF increased by over 43 per cent year-over-year (YoY).

Bottomline

Exchange-traded funds, in some cases, can be an ideal option for low-risk investors as they can go on to reel in long-term capital growth while also providing a steady dividend cycle.

However, one should note that factors such as management expenses attached with such investments can dig into the profits they create.

Also read: Converge (CTS) & Celestica (CLS): 2 TSX alternatives to Meta (FB) stock

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.