This will probably annoy a few people in the Canadian exchange-traded fund (ETF) industry, but I really don’t care for the iShares S&P/TSX 60 Index ETF (TSX:XIU).
Yes, it has history. It was the first ETF ever to trade, debuting in 1990. It’s also massive, with nearly $22 billion in assets. None of that changes the core issue: In 2026, XIU is simply too expensive for what it does.
All it offers is passive exposure to the S&P/TSX 60. That’s fine, but you can now get that same exposure in cheaper or more tax-efficient ways. Loyalty to a brand name is costing investors real money here.
If you want TSX 60 exposure, here are two better options from BMO Global Asset Management and Global X Canada.
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The cheaper, no-nonsense option: BMO
The first alternative is the BMO S&P/TSX 60 Index ETF (TSX:ZIU).
ZIU does exactly what XIU does. It buys all 60 stocks in the S&P/TSX 60 in the same weights and tracks the index minus fees. There’s no strategy twist, no derivatives, no leverage.
The difference is cost. ZIU charges a 0.15% management expense ratio, undercutting XIU for identical exposure. You currently receive an annualized distribution yield of about 2.3%, paid quarterly.
Despite being much smaller at roughly $120 million in assets, liquidity is fine for long-term investors. ZIU isn’t going anywhere. The only real reason XIU still dominates is brand inertia.
The tax-efficient option: Global X Canada
The second alternative is the Global X S&P/TSX 60 Index Corporate Class ETF (TSX:HXT).
HXT looks cheaper at first glance with a 0.08% management fee, but that’s not the full picture. You also need to factor in a 0.16% trading expense ratio and an up to 0.20% swap fee. All in, it’s not meaningfully cheaper than XIU on a headline fee basis.
Where HXT wins is tax efficiency. XIU pays dividends. The current 12-month trailing yield is about 2.3%. Most of that is eligible Canadian dividends, which are tax-efficient, but they’re still taxable in non-registered accounts.
HXT pays no distributions at all. Instead of holding the stocks directly, HXT uses a total return swap to synthetically replicate the TSX 60. Practically, this means no quarterly taxable income. Your return shows up entirely as share price appreciation.
In a taxable account, that’s a huge advantage if you plan to hold long term and don’t need to realize any capital gains soon.
