If you’re looking to start investing in Canada but aren’t sure which stocks to buy, a high-quality Canadian ETF can be one of the easiest ways to put your money to work.
After all, there are a tonne of impressive businesses on the TSX, and deciding between a bank paying reliable dividends, an energy company or a rapidly growing technology stock can be difficult when you’re just getting started.
However, you don’t need to settle on one company to start building a portfolio. By buying an index ETF, you can own several different businesses across a range of industries and continue adding money over time.
That gives you exposure to established companies right away, while still leaving you room to buy individual stocks when you find a long-term opportunity you want more of.
That’s why the iShares S&P/TSX 60 Index ETF (TSX: XIU) is one of the best places to start.
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Why this Canadian ETF is such a simple investment
Rather than spending hours trying to decide which Canadian companies to own, you can buy XIU and immediately have your money invested in 60 of the largest businesses in the country.
Those holdings include major banks and insurers alongside energy producers, pipelines, railways, retailers and technology companies. So, you’re buying businesses with several different ways to generate cash flow and grow over time.
Plus, its management fee is just 0.15% a year, keeping costs low while you give your investments time to grow and compound.
The companies aren’t equally weighted, though. Larger businesses have more influence on its performance, and financial stocks make up a significant part of the portfolio.
Nevertheless, XIU gives you a straightforward way to own many of Canada’s most established companies without having to follow every business individually.
It also pays quarterly distributions, which you can reinvest alongside any new money you contribute to keep building your investment.
A Canadian growth stock to consider alongside it
Once you’ve built that exposure, you can also look at businesses outside the fund when you find a particular growth opportunity you want more of, such as Aritzia (TSX: ATZ), which isn’t even one of XIU’s holdings.
The clothing retailer has already built a strong business in Canada, and its expansion in the United States gives it a much larger market where it can continue reaching new customers.
In fact, the U.S. already accounts for roughly two-thirds of its sales, so Aritzia’s growth goes well beyond Canadians shopping at their local mall.
In the second quarter of fiscal 2027, Aritzia’s total revenue jumped 44% year over year, driven in part by a 60% increase in U.S. sales.
Furthermore, that growth is coming from more than opening new stores. Aritzia is also seeing stronger sales through its existing locations and online, giving it several ways to expand as its brands become better known.
The company continues investing in new stores, using its app and marketing to reach more shoppers, with most of this fiscal year’s new locations planned for the U.S.
And with Aritzia announcing at its investor day this week that it’s now targeting between $9.5 billion and $10.5 billion in annual revenue by fiscal 2032, there’s no question the company still sees significant opportunities to keep expanding its business over the long haul.
So, while XIU gives you a simple way to own many of Canada’s largest businesses, Aritzia offers more direct exposure to a Canadian retailer growing in a much larger market. That makes it one of the most intriguing growth stocks to consider buying and holding alongside your ETF for years.
