A Trusted Brand With Global Reach: Here Are Some of Canada’s Blackrock ETFs

ByDan Kent Published On:

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        Key takeaways

        Strategic Core Holdings – Each ETF can serve as a core building block in a well-diversified portfolio, whether for equity growth, international exposure, or bond stability.

        Broad Market Exposure – BlackRock’s Canadian ETFs provide access to domestic, U.S., international, and fixed-income markets, offering diversified investment opportunities.

        Low-Cost Investing – These ETFs are designed with low expense ratios, making them efficient for long-term investors looking to minimize fees.

        One ETF I like way better than the ones on this list.

        BlackRock, the world’s largest asset manager, offers a variety of exchange-traded funds (ETFs) tailored for Canadian investors. 

        These funds provide a way to gain exposure to various asset classes, including equities and fixed income, across domestic and international markets. 

        Canadian investors are often drawn to BlackRock ETFs for their relatively low management fees and brand recognition. The company is, after all, one of the largest asset managers in the world.

        As the ETF landscape in Canada continues to evolve, BlackRock remains a key player. I’ve seen quite a few fresh funds from Blackrock hit the market over the last few months, catering to a wide variety of investors.

        I’d imagine that’s why you’re here as well: to identify some of the best Blackrock ETFs for your portfolio. That’s exactly why we’re going to explore them in this article. 

        Let’s get started

        What are the best Blackrock ETFs in Canada?

        Canada’s largest and most liquid ETF

        iShares S&P/TSX 60 ETF (TSE:XIU)

        XIU tracks the S&P/TSX 60 Index, which represents 60 of Canada’s largest companies. It provides exposure to major sectors like financials, energy, and materials, making it a popular choice for investors seeking broad Canadian market exposure.

        • Canada’s Blue-Chip Companies – XIU holds the largest and most stable firms in Canada, such as RBC, TD Bank, and Enbridge, ensuring exposure to market leaders.
        • High Liquidity and Low Cost – As one of the most traded ETFs in Canada, XIU offers tight bid-ask spreads and a low management expense ratio (MER) of 0.18%, making it cost-efficient.
        • Strong Dividend Yield – Many of the underlying companies pay dividends, providing an attractive yield for income-focused investors.
        • Resource and Financial Exposure – Given Canada’s market structure, XIU has significant exposure to banks and energy companies, benefiting from strong global demand.
        • Long-Term Stability – With a history dating back to 1999, XIU is one of Canada’s most established ETFs, making it a reliable core holding.
        • Interest Rate Impact on Financials – As Canadian banks dominate XIU, interest rate changes will heavily influence ETF performance.
        • Commodity Price Volatility – Energy and materials sectors will impact XIU, given Canada’s dependence on natural resources.
        • Economic Growth in Canada – A strong domestic economy supports corporate earnings, benefiting XIU’s largest holdings.
        • Sector Concentration – XIU is heavily weighted in financials (~35%) and energy (~15%), making it less diversified than broader indices.
        • Global Commodity Risks – Oil price fluctuations could impact energy stocks, leading to volatility.
        • Canadian Market Size – Compared to the U.S., Canada’s market is smaller and less diversified, which may limit growth.

        International developed market exposure

        iShares Core MSCI EAFE IMI ETF (TSE:XEF)

        XEF provides broad exposure to developed markets outside North America, including Europe, Asia, and Australia. It tracks the MSCI EAFE IMI Index and includes large-, mid-, and small-cap companies.

        • Diversification Beyond North America – XEF gives access to developed markets like Japan, the UK, and Germany, reducing home-country bias.
        • Currency Diversification – With holdings in multiple currencies (euro, yen, pound), investors gain foreign currency exposure.
        • Low-Cost International Access – With a low MER of 0.22%, XEF is a cost-effective way to invest in international equities.
        • Balanced Sector Exposure – Unlike Canadian ETFs, XEF is diversified across sectors, including consumer goods, industrials, and healthcare.
        • Strong Performance from Global Leaders – The ETF includes companies like Nestlé, Toyota, and Roche, which are key players in their respective industries.
        • European and Asian Economic Recovery – Growth in major economies could boost corporate earnings.
        • Foreign Exchange Movements – A weaker Canadian dollar could enhance returns from foreign investments.
        • Global Trade Policies – Tariffs and trade agreements may impact international markets differently.
        • Foreign Market Volatility – Economic uncertainty in Europe and Asia could cause fluctuations.
        • Currency Risk – Exchange rate shifts can impact CAD-denominated returns.
        • Slower Growth in Developed Markets – Some regions may experience slower economic expansion compared to the U.S.

        Broad exposure to Canadian bonds

        iShares Core Canadian Universe Bond ETF (TSE:XBB)

        XBB tracks the FTSE Canada Universe Bond Index, offering diversified exposure to government and corporate bonds across various maturities.

        • Stable Income Generation – XBB provides a steady income stream through interest payments, making it a good choice for conservative investors.
        • Broad Bond Market Exposure – The ETF includes federal, provincial, and investment-grade corporate bonds, ensuring diversification.
        • Lower Volatility Compared to Equities – Bonds provide downside protection, making XBB a defensive portfolio component.
        • Effective in Rate Cut Environments – Falling interest rates could increase bond prices, benefiting XBB holders.
        • Cost-Effective Fixed Income Option – With an MER of 0.10%, XBB is an affordable way to access the bond market.
        • Bank of Canada Interest Rate Decisions – Future rate cuts or hikes will impact bond yields and performance.
        • Inflation Trends – Higher inflation erodes fixed-income returns, while lower inflation supports bonds.
        • Corporate Credit Spreads – Changes in corporate bond yields affect XBB’s overall performance.
        • Rising Interest Rates – Higher rates decrease bond prices, negatively impacting XBB.
        • Credit Risk in Corporate Bonds – Economic downturns could increase default risks.
        • Inflation Impact – Rising inflation reduces the purchasing power of bond payments.

        U.S. market exposure with low cost

        iShares Core S&P 500 ETF (TSE:XUS)

        XUS provides access to the S&P 500, offering exposure to 500 of the largest U.S. companies across all major sectors.

        • Exposure to World’s Leading Companies – Holdings include Apple, Microsoft, Amazon, and Google, representing global innovation leaders.
        • Strong Long-Term Growth Potential – The S&P 500 has historically outperformed most global indices over extended periods.
        • Sector Diversification – Covers technology, healthcare, consumer goods, and finance, balancing risk.
        • Hedged and Unhedged Versions – Investors can choose between CAD-hedged and unhedged versions based on currency risk preferences.
        • Low-Cost U.S. Market Access – With an MER of 0.09%, XUS is one of the cheapest ways to invest in the U.S. market from Canada.
        • U.S. Economic Growth – A strong U.S. economy supports corporate earnings.
        • Tech Sector Performance – Tech stocks are the largest component of XUS, driving returns.
        • Federal Reserve Policy – Interest rate decisions will affect market sentiment.
        • Market Valuation Concerns – The S&P 500’s high valuation could limit future gains.
        • Currency Risk – A strong CAD weakens XUS returns for Canadian investors.
        • Tech Sector Dominance – Heavy reliance on tech makes it vulnerable to downturns in that sector.

        One-ticket global equity solution

        iShares Core Equity ETF Portfolio (TSE:XEQT)

        XEQT is a 100% equity ETF that provides diversified exposure to Canadian, U.S., and international markets in one fund.

        • All-in-One Equity Portfolio – XEQT eliminates the need to buy multiple ETFs for global exposure.
        • Global Diversification – The fund holds a mix of Canadian, U.S., and international equities, reducing regional risk.
        • Passive, Low-Cost Investing – With an MER of 0.20%, XEQT is cost-effective for long-term investors.
        • Automatic Rebalancing – The ETF maintains its target asset allocation without manual intervention.
        • No Need for Stock Picking – Ideal for hands-off investors looking for simplicity and diversification.
        • Global Economic Growth Outlook – Since XEQT holds equities from multiple regions, overall economic expansion in North America, Europe, and Asia will drive long-term performance. A strong U.S. and Canadian economy, coupled with resilience in international markets, will support stock returns.
        • Interest Rate Shifts – Higher interest rates typically weigh on equities, while rate cuts can boost stock prices. Investors should monitor central bank policies from the Bank of Canada, the Federal Reserve, and other major global central banks.
        • Technology Sector Influence – A large portion of XEQT’s holdings are in the tech sector, particularly through its U.S. and international exposures. Trends in artificial intelligence, semiconductors, and software will be key drivers of growth.
        • Equity Market Volatility – 100% equity exposure means higher risk during downturns.
        • Currency Fluctuations – Global holdings add FX risk.
        • No Fixed Income Component – Not suitable for conservative investors needing bonds.

        Direct Bitcoin exposure through a regulated ETF

        iShares Bitcoin Trust ETF (IBIT:NO)

        IBIT seeks to reflect the performance of the price of Bitcoin, less expenses. As a physically-backed ETF, it holds actual Bitcoin, offering investors a straightforward method to gain exposure to the cryptocurrency market without the complexities of direct ownership.

        • Direct Exposure to Bitcoin: By holding actual Bitcoin, IBIT provides investors with price movements that closely mirror the cryptocurrency’s market value.
        • Institutional-Grade Security: Managed by BlackRock, IBIT benefits from secure custody solutions, ensuring asset protection against potential security breaches.
        • Regulatory Clarity: The approval and management of IBIT by established institutions like BlackRock signal growing acceptance of Bitcoin as a legitimate asset class, reducing regulatory uncertainties.
        • Inflation Hedge Potential: Bitcoin is often viewed as “digital gold,” offering potential protection against inflation and currency devaluation.
        • Cost-Effective Access: IBIT provides a cost-effective alternative to direct Bitcoin purchases, eliminating the need for individual cryptocurrency wallets and private key management.
        • Institutional Adoption: BlackRock’s inclusion of IBIT in its model portfolios indicates a growing institutional interest in Bitcoin, which could drive further demand and acceptance.
        • Regulatory Developments: Ongoing changes in the regulatory landscape, both in the U.S. and globally, could impact the operation and attractiveness of Bitcoin ETFs.
        • Macroeconomic Factors: Economic indicators such as inflation rates, interest rates, and monetary policies can influence Bitcoin’s appeal as an alternative asset class.
        • Market Sentiment: Investor sentiment towards cryptocurrencies, influenced by technological advancements and market dynamics, can affect Bitcoin’s price and, consequently, IBIT’s performance.
        • High Volatility: Bitcoin’s price is known for significant fluctuations, which can lead to substantial gains or losses over short periods.
        • Regulatory Changes: Future regulatory actions could impact the operation of Bitcoin ETFs, affecting their availability and attractiveness to investors.
        • Security Risks: While IBIT employs institutional-grade security measures, the inherent risks associated with digital assets, such as cyber threats, remain a consideration.
        • Market Correlation: Bitcoin’s performance may correlate with broader market trends, potentially reducing its effectiveness as a diversification tool during certain economic conditions.

        Key factors when selecting an ETF

        Management Expense Ratio (MER)

        The Management Expense Ratio (MER) represents the combined total of all management fees and operating expenses associated with an ETF, expressed as a percentage of the ETF’s average net assets. 

        You should heavily scrutinize the MER as it directly impacts your net returns. Keep in mind that you need to look to the fact sheet of an ETF, not a standard data website like Yahoo Finance, for total fees. There can be additional fees on top of what is listed publicly.

        Portfolio diversification

        Diversification benefits are key in mitigating risk. An ETF with a comprehensive sector allocation can protect investors from volatility in any single sector. For instance, BlackRock offers ETFs that diversify not just across industries but global markets as well, safeguarding against regional downturns.

        Tax efficiency

        ETFs can offer better tax efficiency through lower turnover of holdings, which can result in fewer capital gains distributions. There are also funds that pay particularly high distributions that can expose investors to higher taxable income if held in taxable accounts.

        It’s important to consider the overall amount and the structure of an ETF distribution to make sure it’s right for you.

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