iShares S&P/TSX Capped Energy Index ETF (XEG.TO) Stock 2026 Review

Mika L.
Written by Mika L.
Financial Content Writer

iShares S&P/TSX Capped Energy Index ETF4.5/5

XEG.TO (TSX)

Dividend yield
3.62%
Distribution
Quarterly
1-Year Return
7.85%
5-Year Return
193.59%

The iShares S&P/TSX Capped Energy Index ETF (XEG) stands out as a top performer in the Canadian energy sector, boasting a 7.85% return over the past year and an impressive 193.59% over five years. With a dividend yield of 3.62%, this fund is an attractive option for investors looking for exposure to energy while benefiting from consistent income. Currently rated as a buy, XEG's concentrated strategy may offer substantial gains during market upswings, although it also carries risks during downturns.

Pros:

  • Top performer in the Canadian energy sector
  • Strong one-year return

Cons:

  • High risk due to sector concentration
  • Potential for significant downside in downturns

The iShares S&P/TSX Capped Energy Index ETF (XEG.TO) may be suitable for investors seeking exposure to the Canadian energy sector with a focus on potential growth and dividend income, particularly those comfortable with the inherent volatility of concentrated sector investments. While its strong historical returns and attractive yield are notable, potential investors should carefully consider their risk tolerance and market outlook before proceeding.

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