ETFs - Canadian Sector ETF Rankings Monthly Update (June 2026)

Research evidence excerpt

ETFs - Canadian Sector ETF Rankings Monthly Update (June 2026)

June 18, 2026

Canadian Sector ETF Rankings Monthly Update

(June 2026)

Exchange Traded Funds

David Cheng Analyst

Summary David.Cheng@bmo.com (416) 359-7383

In this report, we publish the latest monthly information ratio (IR) based ETF rankings. Lemeng Chen, CFA VP Associate

Lemeng.Chen@bmo.com (437) 215-5602

Our quant strategy uses a two-layer approach to predict changes in ETF IR. The first

statistical layer provides information on the expected changes in IR momentum, while

the second multi-factor layer monitors for shifts within the underlying fair values. Legal Entity: BMO Nesbitt Burns Inc.

Together, we believe the combination of statistical and factor-driven analysis allows us

to present a more holistic view of the Canadian equity market.

Key Points:

Since the May 21 update, we underperformed the S&P/TSX by ~1.1%, primarily driven

by notable pullback in the energy sector. Year to date, our sector rankings screen

recorded a total return of 11.28% (monthly compounded), which outperformed the

Canadian benchmark by ~3.4%.

In this update, our screens made the following changes:

 We added to staples (XST, +12.1%) as momentum in defensive sectors

continues to build with relative resilience amid softer macro data. Financials

(ZFN), industrials (ZIN), and dividend growers (DGRC) remain our core cyclical

exposures.

 We continue to trim weights in commodity-impacted sectors like energy (ZEO,

-6.1%), gold (ZGD, -3.4%), and materials (ZMT, -2.4%), as easing supply

constraints and a stabilization in commodity prices have reduced tailwinds

that drove prior outperformance.

 Allocations to technology (XIT) and utilities (ZUT) were largely unchanged