iShares S&P/TSX 60 Index ETF (TSX:XIU) in Focus as Big Bank Earnings Beat and TSX Hovers Near Record Highs

Key Highlights

• TSX:XIU holds the 60 largest and most liquid companies on the Toronto Stock Exchange and is among Canada's most heavily traded ETFs.
• Approximate AUM sits in the C$16–18 billion range, making it a core institutional and retail building block.
• The S&P/TSX Composite reached record territory near 37,000 in late August and was up roughly 14% year to date in early September.
• All Big Six banks beat third-quarter earnings estimates, reinforcing the fund's heavy financials weight.
• The Bank of Canada's October 28 decision and the escalating Canada-US trade dispute are the next major catalysts.

Fund Snapshot

Fund Objective and Benchmark

The iShares S&P/TSX 60 Index ETF (TSX:XIU) aims to replicate, net of expenses, the S&P/TSX 60 Index, a market-cap weighted basket of 60 leading Canadian blue chips. Tracing its roots to the very first exchange-traded products launched in Toronto in 1990, TSX:XIU is one of the most recognized ETFs in the world and remains a favourite of institutions thanks to its deep liquidity and tight bid-ask spreads.

The fund focuses squarely on Canadian large caps, offering investors a concentrated view of the companies that drive the domestic economy: banks, pipelines, energy producers, railways, miners and a growing technology segment.

Why TSX:XIU Is Trending Now

Canadian equities have shown remarkable resilience in 2026 despite tariff friction with Washington. The TSX touched record levels near 37,000 in late August before pulling back toward the mid-35,000 range in mid-September amid a global bond selloff. Through early September, the Canadian benchmark ranked among the strongest major markets globally.

Bank earnings were a major driver. All six of Canada's largest banks beat third-quarter estimates, generating combined quarterly net income of roughly C$19 billion. Royal Bank of Canada posted record profit of about C$6.0 billion, while TD Bank's profit rose about 38% year over year to roughly C$4.6 billion. Because banks make up the largest share of TSX:XIU, those results flowed directly into investor sentiment around the fund.

Flow data also shows advisors repositioning within Canadian large-cap index exposures rather than abandoning domestic equities, and TSX:XIU remains a central vehicle for that tactical activity.

Sector Allocation

• Financials: about 36%–38%
• Energy: about 15%–17%
• Materials (including gold miners): about 12%–14%
• Industrials: about 10%–11%
• Information technology: about 9%–10%
• Utilities, communication services, consumer staples and others: remainder

Geography is 100% Canadian-listed, though many holdings earn substantial revenue in the US and globally.

Top Holdings

Leading positions typically include Royal Bank of Canada, Shopify, Toronto-Dominion Bank, Enbridge, Brookfield Corporation, Agnico Eagle Mines, Bank of Montreal, Bank of Nova Scotia, Canadian Natural Resources, Canadian Pacific Kansas City, Canadian National Railway and Constellation Software. The top ten often account for roughly half of the portfolio.

What Investors Can Watch Going Forward

• Bank of Canada on October 28: the policy rate has been held at 2.25%, but the Bank flagged rising inflation risks with CPI near 3%, leaving the door open to a hike.
• Trade policy: Canadian counter-tariffs took effect September 8, and further escalation could weigh on industrials and consumer names.
• Oil and gold: elevated crude prices support energy holdings, while gold strength has boosted miners.
• Bond yields: Canada's 10-year yield touched about 4% on September 24, the highest since late 2023, which can pressure rate-sensitive sectors.
• Bank fourth-quarter results in late November and early December, typically paired with dividend announcements.

Bottom Line

TSX:XIU remains the go-to liquid proxy for Canada's blue-chip market. Strong bank profits and commodity tailwinds support the outlook, but rate risk and tariff headlines could keep volatility elevated into year end. All figures are approximate; investors should verify current data with the issuer.