XIU: The iShares S&P/TSX 60 Index ETF
XIU is Canada's original exchange-traded fund and still one of its largest. It is the iShares S&P/TSX 60 Index ETF from BlackRock, holding the 60 largest and most liquid companies on the Toronto Stock Exchange, priced in Canadian dollars. This guide explains what XIU holds, how it differs from broad-market funds, and where it fits.
What XIU holds
XIU tracks the S&P/TSX 60 Index, a basket of 60 of the largest Canadian companies. These are the blue-chip names of the TSX: the big banks and insurers, major energy producers, pipelines, railways, telecoms, and large materials companies.
Because it holds only the 60 largest names, XIU is a large-cap fund. It captures a very large share of the total value of the Canadian market even though it holds far fewer companies than a broad composite fund.
XIU has a place in Canadian investing history as the first ETF ever launched, and it remains extremely liquid, which is one reason large and active traders favour it.
Keep reading: What is an ETF? · Best ETFs in Canada. For the official rules, see iShares by BlackRock — Canada.
XIU vs XIC: 60 names vs the whole market
The key difference between XIU and a broad fund like XIC is breadth. XIU holds 60 large companies; XIC holds most of the investable Canadian market, including mid-sized companies.
- XIU: 60 largest companies, large-cap focus, extremely liquid.
- XIC: broad capped composite, more companies including mid-caps, maximum diversification.
In practice their returns are similar because the largest 60 companies drive most of the Canadian market's value. XIC is slightly more diversified; XIU is slightly more concentrated in blue chips and is prized for its liquidity.
Sector concentration and dividends
Like the broader Canadian market, XIU is heavily weighted toward financials and energy, with meaningful exposure to telecoms, railways, and materials. That reflects the shape of the TSX, not a choice by the fund.
XIU pays eligible Canadian dividends. In a non-registered account those qualify for the Canadian dividend tax credit, which is a genuine advantage over foreign dividends. Many of its holdings are large, established dividend payers.
There is no currency risk, since XIU and its holdings are all in Canadian dollars.
Where XIU fits in a portfolio
XIU works as the Canadian large-cap portion of a diversified portfolio, held alongside U.S. and international ETFs. It gives you concentrated exposure to Canada's biggest, most established companies.
It suits investors who want blue-chip Canadian exposure and value liquidity, and it is popular with those who use options or trade in size. For a pure buy-and-hold investor seeking maximum diversification, a broad composite fund like XIC or ZCN is a reasonable alternative.
As with any single-country fund, Canada is a small part of the world, so XIU should be one slice of a global mix, not the whole portfolio.
Things to check before you buy
- The management fee: confirm the current MER on the iShares fund page.
- Breadth: understand that XIU is large-cap only, versus the broader XIC or ZCN.
- Overlap: do not hold XIU together with XIC/ZCN/VCN for the same allocation; they overlap heavily.
- Sector concentration: expect heavy financials and energy weighting.
These help you decide whether the 60-stock large-cap approach or a broad composite suits you better.
Frequently asked
What is the difference between XIU and XIC?
XIU holds only the 60 largest Canadian companies, while XIC holds most of the broad Canadian market including mid-sized companies. XIC is more diversified; XIU is more concentrated in blue chips and is favoured for its very high liquidity.
Why is XIU so popular if XIC is more diversified?
XIU is the oldest and one of the most liquid ETFs in Canada, which makes it attractive to large investors, active traders, and options users. For simple buy-and-hold diversification, many long-term investors prefer XIC or ZCN.
Does XIU pay dividends?
Yes. It holds many of Canada's largest dividend-paying companies and distributes eligible Canadian dividends, which qualify for the dividend tax credit in a taxable account.
Sources
General information for Canadian readers, not individualized financial, tax or investment advice. Figures reflect the date reviewed; confirm current limits and rules with the CRA or a qualified professional before acting.