10 Best Canadian ETFs to Buy

7. iShares ESG Aware MSCI Canada Index ETF (TSX:XESG)

5-year Share Price Performance as of December 9, 2024: 50%

The iShares ESG Aware MSCI Canada Index ETF (TSX:XESG) aims to closely replicate the price and yield performance of the MSCI Canada IMI Extended ESG Focus Index. The fund primarily invests in a diversified portfolio of 116 stocks, including large, mid, and small-cap Canadian companies that align with ESG criteria. Established in 2019, it currently manages C$472 million in total net assets.

On December 4, RBC Capital Markets updated its financial outlook for Enbridge Inc. (NYSE:ENB), a major player in energy transportation and distribution with a market capitalization of $95.9 billion and a top holding of the iShares ESG Aware MSCI Canada Index ETF (TSX:XESG). RBC raised its price target for ENB from $59 to $63 while maintaining an Outperform rating. This adjustment reflects a positive view of Enbridge’s 2025 outlook, which highlights a projected EBITDA range of $10.8 billion. RBC noted that consensus estimates remain at the lower end of this range and are based on what it considers conservative assumptions regarding Mainline volumes and the USD/CAD exchange rate.

Enbridge’s renewables segment continues to expand, with projects like the Sequoia Solar Project in Texas becoming one of the largest in North America. This project is largely supported by long-term fixed-price power purchase agreements with investment-grade clients, including AT&T and Toyota. Furthermore, Enbridge Inc. (NYSE:ENB) announced a 3% increase in its quarterly dividend, raising it to C$0.9425 per share, reinforcing its commitment to shareholder returns.