S&P/TSX Global Gold ETF (XGD.CA)
The iShares S&P/TSX Global Gold Index ETF (XGD.TO) has emerged as one of the best-performing Canadian ETFs this year, delivering an exceptional year-to-date total return of approximately 118%. This strong performance reflects both the rising value of gold and the operational gains of the global gold mining companies the ETF holds.
Overview and Composition:
XGD.TO tracks the S&P/TSX Global Gold Index, providing investors with broad exposure to major global gold producers rather than direct bullion ownership. Its portfolio includes leading names such as Newmont, Agnico Eagle, Barrick Gold, Wheaton Precious Metals, and Franco-Nevada, which collectively make up a significant portion of the fund.
Performance Drivers:
The ETF’s strong returns have been fueled primarily by a surge in gold prices throughout 2025. Factors such as central bank demand, inflation concerns, and geopolitical uncertainty have driven investors toward gold as a safe-haven asset. Gold miners’ stock prices tend to rise faster than the price of gold itself, due to improved profit margins and leverage to commodity prices, as a result XGD has benefited from amplified gains relative to the underlying metal.
Risk Considerations:
While XGD has delivered exceptional returns, it is inherently more volatile than broad market ETFs. Its performance is closely tied to gold prices and the profitability of mining operations, meaning returns can fluctuate sharply in response to commodity price changes or operational risks.
Summary:
ETF Type: Materials / Precious Metals Equity (Global Gold Miners)
Top Holdings: Newmont, Agnico Eagle, Barrick Gold, Wheaton Precious Metals, Franco-Nevada
2025 Performance: ~118% year-to-date total return
Key Drivers: Strong gold price rally, operational leverage of mining companies, and investor demand for safe-haven assets
Consideration: High volatility due to commodity and operational risks
In short, XGD’s outstanding performance this year underscores the significant impact of gold price movements on miner-focused equity ETFs and highlights why investors seeking precious metals exposure have gravitated toward this fund.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
