2 Best Industrial ETFs in Canada (June 2026)
The best industrial ETFs in Canada include XIN.TO (~0.06% MER) and XGI.TO (~0.61%). These ETFs provide exposure to global industrial companies across sectors like manufacturing and transportation, offering growth potential tied to economic cycles, but with sensitivity to downturns and less stability than defensive sectors.
Industrial ETFs are designed for Canadian investors seeking exposure to companies involved in manufacturing, transportation, construction, and global supply chains. These sectors are closely tied to economic growth, making industrial ETFs a cyclical investment that can perform well during expansions.
ETFs like XIN.TO and XGI.TO provide access to global industrial companies, including aerospace, logistics, and infrastructure-related firms. While they offer growth potential, their performance is sensitive to economic cycles, trade activity, and business investment.
In this guide, we break down the best industrial ETFs in Canada, comparing diversification, sector exposure, and risk so you can decide how they fit into your TFSA, RRSP, or growth-oriented portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top XIN.TO iShares MSCI EAFE Index ETF (CAD-Hedged) | — | $1.9B | 2.66% | +11.34% | +22.22% |
XGI.TO iShares S&P Global Industrials Index ETF (CAD-Hedged) | — | $162M | 1.40% | +13.79% | +21.51% |
What Is an ETF?
An industrial ETF in Canada is an exchange-traded fund that invests in companies within the industrial sector, including manufacturers, transportation firms, construction companies, and capital goods producers. These ETFs provide exposure to businesses that support economic activity and infrastructure development.
For example, XIN.TO (~0.06% MER) provides broad exposure to global equities including industrial companies, while XGI.TO (~0.61% MER) focuses more directly on global infrastructure and industrial-related assets. ZGI.TO is another ETF with overlapping exposure to industrial and infrastructure sectors.
Industrial ETFs are commonly used in diversified portfolios for growth and economic cycle exposure. Investors should consider global diversification, sector concentration, and sensitivity to economic conditions when selecting an ETF.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
iShares MSCI EAFE Index ETF (CAD-Hedged)
$47.23
+11.34% YTD
Returns
YTD
+11.34%
1Y
+22.22%
3Y
+16.06%
5Y
+11.53%
iShares S&P Global Industrials Index ETF (CAD-Hedged)
$72.29
+13.79% YTD
Returns
YTD
+13.79%
1Y
+21.51%
3Y
+18.76%
5Y
+12.36%
Pros & Cons
Pros
- Exposure to companies benefiting from economic growth and global trade
- Diversification across industries like transportation, manufacturing, and construction
- Can perform well during economic expansions and infrastructure spending cycles
- Complements broader equity portfolios with cyclical exposure
Cons
- Highly sensitive to economic downturns and slowdowns
- Cyclical nature can lead to periods of underperformance
- Less defensive compared to sectors like utilities or healthcare
- Some ETFs may have indirect or diluted industrial exposure
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best industrial ETF in Canada?
XIN.TO is a popular option due to its low cost and broad global exposure, including industrial companies. XGI.TO offers more targeted exposure to infrastructure and industrial-related assets.
Are industrial ETFs cyclical?
Yes, industrial ETFs are cyclical because they are closely tied to economic growth. They tend to perform well during economic expansions but may decline during recessions or slowdowns.
Are industrial ETFs good for long-term investing?
Industrial ETFs can be suitable for long-term investors as part of a diversified portfolio. However, due to their cyclical nature, they are often best used alongside more stable sectors to balance risk.