10 Best Canadian ETFs to Buy

4. iShares S&P/TSX Capped Materials Index ETF (TSX:XMA)

5-year Share Price Performance as of December 9, 2024: 57.66%

The iShares S&P/TSX Capped Materials Index ETF (TSX:XMA) seeks to replicate the performance of the S&P/TSX Capped Materials Index, which focuses on Canadian materials stocks. Year-to-date, the ETF has delivered returns of 29.37%. It also distributes quarterly dividends with a yield of 0.97%.

Nutrien Ltd. (NYSE:NTR), a leading Canadian agriculture and fertilizer company and one of the world’s largest producers of potash and nitrogen fertilizers, is ranked among the top 10 largest holdings of the ETF. On December 4, BMO Capital Markets reaffirmed its Outperform rating for Nutrien Ltd. (NYSE:NTR) and maintained a $70 price target. This decision followed a strategic update from Nutrien’s leadership, outlining the company’s plans through 2025 and 2026. BMO highlighted Nutrien’s commitment to maintaining substantial potash capacity, a market that has shown steady recovery with increasing demand over the past two years. The company’s strategy positions it to capitalize on market growth while prioritizing operational efficiency and profitability.

In its Q3 2024 earnings report, Nutrien Ltd. (NYSE:NTR) showcased significant achievements despite challenges. While lower benchmark potash prices and reduced nitrogen adjusted EBITDA impacted results, the company reported higher upstream sales volumes and adjusted EBITDA for the first nine months of 2024.  also announced plans to achieve $200 million in annual operational efficiencies by 2025. For the quarter, adjusted EBITDA totaled $4.3 billion, with retail adjusted EBITDA increasing 10% year-over-year.