Canada’s Go-To Commodity ETFs for Resource Exposure

ByDylan Callaghan Published On:

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        Key takeaways

        Macroeconomic Sensitivity – Commodity ETFs are influenced by inflation, interest rates, and global supply-demand trends.

        Broad Exposure to Commodities – These ETFs offer access to energy, metals, and agriculture, key sectors in Canada’s resource-rich economy.

        Physical vs. Equity-Based Holdings – Some ETFs hold actual commodities (gold, silver, uranium), while others track companies in these sectors.

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

        Amidst a world with record government spending, sticky inflation, and overall economic uncertainty, commodities are starting to become popular investing choices among investors. These can include, but are certainly not limited to:

        • gold
        • silver
        • uranium
        • oil
        • graphite

        If you’re looking to get exposure to precious metals or other commodities, commodity ETFs are often the best route to go

        Buying individual commodities can be somewhat tricky, especially when we get into the idea of commodity futures. Commodity markets are complex, and should only really be utilized by Canadian investors who knows the ins an outs of futures contracts.

        The fact you can gain single-click exposure to pretty much any precious metal or commodity you want on the Toronto Stock Exchange with an exchange-traded fund has made commodity-based Canadian ETFs extremely popular.

        In this article, I’m going to list some of the top commodity ETFs in the country, and I’ll try to cover a relatively broad list. If ETFs is your game, don’t miss our piece on Canada’s top preferred share ETFs here.

        Lets get right into it.

        What are the best Canadian commodity ETFs to buy today?

        The top commodity ETFs when it comes to oil and gas

        Canadian energy sector leader

        The iShares S&P/TSX Capped Energy Index ETF (XEG)

        This ETF tracks the S&P/TSX Capped Energy Index, giving investors exposure to major Canadian oil and gas companies. With a concentrated focus on energy producers, it benefits from rising oil prices and energy demand.

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        • Pure Play on Canadian Energy – Focused on major energy producers, benefiting from oil and gas price movements.
        • Oil Price Sensitivity – Profits and stock performance are directly linked to crude oil price fluctuations.
        • Dividend Potential – Some holdings provide strong dividend yields, making it appealing for income investors.
        • Inflation Hedge – Energy stocks historically perform well during inflationary cycles.
        • Limited Diversification – Highly concentrated in a few large companies, increasing risk during downturns.
        • Global Oil Demand – Rising energy consumption from emerging markets.
        • OPEC+ Production Cuts – Supply adjustments impacting oil prices.
        • Energy Transition Policies – Government regulations and climate policies affecting the sector.
        • Regulatory Uncertainty – Carbon taxes and emissions regulations could impact profitability.
        • Oil Price Volatility – Market fluctuations can lead to sharp price swings.

        Direct crude oil exposure

        Global X Crude Oil ETF (HUC)

        Provides direct exposure to crude oil prices by tracking WTI crude oil futures.

        • Pure Oil Price Play – Unlike XEG, this fund does not hold stocks, only crude oil contracts.
        • Futures-Based Strategy – Exposed to contango and backwardation risks, affecting long-term returns.
        • Short-Term Trading Tool – More suitable for traders than buy-and-hold investors.
        • Inflation Protection – Oil prices often rise with inflation, making it a hedge.
        • Supply Chain Disruptions – Geopolitical issues affecting oil supply.
        • U.S. Shale Production – Increased drilling could lower prices.
        • Futures Market Complexity – Contract rollovers can impact performance.
        • Geopolitical Instability – Oil markets react sharply to geopolitical events.

        Top commodity ETFs when it comes to gold

        Gold mining stock exposure

        iShares S&P/TSX Global Gold Index ETF (XGD)

        Holds major gold mining stocks, primarily Canadian firms like Barrick Gold and Agnico Eagle.

        • Gold Price Leverage – Mining stocks amplify movements in gold prices.
        • Geographic Diversification – Exposure to global gold miners.
        • Cyclical Volatility – Gold mining stocks tend to be more volatile than physical gold.
        • Central Bank Gold Buying – Countries increasing gold reserves.
        • Inflation Hedge – Gold historically preserves value during inflation.
        • Mining Cost Inflation – Higher operational costs can impact margins.
        • Stock Market Correlation – Unlike physical gold, mining stocks can decline with equity markets.

        Direct physical gold exposure

        iShares Gold Bullion ETF (CGL, or CGL.C)

        Holds actual gold bullion, providing a direct hedge against inflation and market instability.

        • Safe-Haven Asset – Gold is a historically strong store of value.
        • Currency Options – CAD and USD hedged versions available.
        • Lower Volatility than Miners – Avoids risks related to mining operations.
        • Interest Rates & Inflation – Gold performs well when real interest rates are low.
        • Economic Uncertainty – Gold demand spikes during recessions and crises.
        • No Dividend Yield – Unlike stocks, gold generates no income.
        • Storage & Security Costs – Management fees cover bullion storage.

        Direct physical gold exposure

        BMO Gold Bullion Series Units ETF (TSE: ZGLD)

        Holds physical gold bullion, allowing investors to gain exposure to gold without investing in mining stocks or futures.

        • Pure Gold Investment – Tracks gold prices closely, offering a reliable hedge against inflation and economic uncertainty.
        • Safe-Haven Asset – Historically used as protection against currency devaluation and stock market downturns.
        • Lower Volatility than Gold Stocks – Avoids the operational risks of gold mining companies.
        • Central Bank Policies – Interest rate decisions impact gold demand.
        • Inflationary Pressures – Rising global inflation may drive more investors to gold.
        • No Yield or Income – Unlike mining stocks, physical gold does not pay dividends.

        Top commodity ETFs when it comes to silver

        Silver mining stock exposure

        Global X Silver Miners ETF (ARCA:SIL)

        Tracks leading silver mining stocks, offering leveraged exposure to silver prices.

        • High Volatility – Silver miners are more volatile than gold miners.
        • Industrial & Investment Demand – Silver has both monetary and industrial applications.
        • Renewable Energy & EV Growth – Silver demand increasing for solar panels and electronics.
        • Cyclical Performance – Silver mining stocks move with economic trends.

        Direct physical silver exposure

        Sprott Physical Silver Trust ETF (PSLV)

        Holds actual silver bullion, allowing investors to bypass futures contracts.

        • Tangible Silver Ownership – Tracks silver prices directly.
        • Inflation & Crisis Hedge – Silver has historically been a monetary hedge.
        • Rising Industrial Demand for Silver – Silver is a key component in solar panels, electric vehicles, and electronics. As the global push for renewable energy accelerates, demand for silver in industrial applications is expected to grow, supporting higher prices.
        • Inflation and Monetary Policy Impact – Silver, like gold, is often used as a hedge against inflation. If central banks continue expansionary policies or inflation remains persistent, demand for physical silver could rise as investors seek wealth preservation.
        • Silver Supply Constraints – Mining production disruptions and declining ore grades at major silver mines could lead to supply shortages. If demand remains strong, this imbalance could push silver prices higher over the long term.
        • Geopolitical and Economic Uncertainty – During times of economic instability or geopolitical tensions, investors often turn to precious metals. Silver’s dual role as an industrial and monetary asset makes it a unique hedge against volatility.
        • Growth in Silver Investment Demand – More investors are turning to physical silver and silver-backed ETFs as an alternative to fiat currency and equities. Increasing institutional and retail interest in silver as a strategic asset could drive up prices.
        • No Yield – Like gold, silver does not generate income.

        Top commodity ETFs when it comes to agriculture

        Agricultural commodity stock exposure

        iShares Global Agriculture Index ETF (COW)

        Invests in companies involved in farming, fertilizers, and agricultural equipment.

        • Global Food Demand Growth – Rising populations drive agricultural demand.
        • Inflation Hedge – Agriculture stocks benefit from rising food prices.
        • Climate Change Impact – Weather conditions affecting crop yields.
        • Geopolitical & Weather Risks – Agricultural production can be unpredictable.

        The top commodity ETFs when it comes to uranium.

        Uranium mining stock exposure

        Global X Uranium ETF (URA)

        Holds uranium miners benefiting from nuclear energy growth.

        • Nuclear Power Expansion – Growing global investment in nuclear energy.
        • High Price Volatility – Uranium mining stocks experience large swings.
        • Government Policies – Clean energy initiatives supporting nuclear expansion.
        • Regulatory Uncertainty – Nuclear projects face strict environmental regulations.

        Direct physical uranium exposure

        Sprott Physical Uranium Trust (U)

        Holds actual uranium, providing direct exposure to uranium price movements.

        • Supply Constraints & Demand Growth – Limited new uranium production.
        • Nuclear Reactor Construction – New projects boosting uranium demand.
        • Geopolitical Supply Chain Risks – Uranium sourcing is highly concentrated.

        BONUS: An all in one precious metal ETF

        Diversified precious metals exposure

        Aberdeen Standard Physical Precious Metal Basket ETF (GLTR)

        Holds gold, silver, platinum, and palladium for broad commodity exposure.

        • Diversified Safe-Haven Investment – Spreads risk across multiple metals.
        • Industrial Demand – Platinum and palladium are used in the automotive industry.
        • Electric Vehicle Growth – Changes in battery and fuel cell technology affecting demand.
        • No Yield – Like all physical metal ETFs, it does not generate income.

        Overall, the options when it comes to commodity ETFs are endless

        I’ve highlighted a bunch of different ETFs that can get you exposure to oil, natural gas, gold, silver, agriculture, uranium, platinum, and palladium. However, there are many more commodities out there, and if I had all of them on this list, it would be never-ending.

        So, first decide whether or not you want an equity ETF, which would be companies that produce, explore for, and sell the underlying commodity, or whether or not you want exposure to the commodity directly.

        From there, you can at least weed out the majority of commodity ETFs and point your focus to the one that makes the most sense for you.

        If you’d like another commodity to be added to this list, simply shoot me an e-mail and I will try to accommodate!

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