Despite coming off two years of strong performance, equity markets have continued to reach new highs in 2026. While the war in the Middle East and the resulting energy crisis have increased volatility, almost all Canadian Investment Funds Standards Committee (CIFSC) categories remain in positive territory through the first four months of the year.
With the price of oil nearly doubling since the end of last year, it is no surprise that the top-performing category so far in 2026 is Energy Equity, with an average year to date (YTD) return of 32.5%. Asia Pacific ex-Japan Equity follows at 20.9%, with Natural Resources Equity close behind at 18.6%. The only non-alternative category in negative territory is Global Fixed Income, which has lost an average of just 0.2%.
Canadian Equity funds have gained an average of 6.4%, outpacing U.S. Equity funds, which are up 3.9%. The average Global Equity fund has returned 4.2% YTD, while Emerging Markets funds have gained 15.5%.
Through April 30, 2026, the top performing non-alternative fund is iShares Semiconductor Index ETF (TSX: XCHP), which has gained 52.2%. Launched in September 2023, XCHP is a Sector Equity fund that tracks the 30 largest U.S.-listed semiconductor stocks. Its top holdings include Advanced Micro Devices Inc., Broadcom Inc., and Micron Technology Inc. Since inception, the fund has delivered an annualized return of 46.6%.
The next best performing fund in 2026 is Ninepoint Energy Fund. Its ETF version, (CBOE CAN: NNRG), has gained 44.3% over the first four months of the year. The fund is actively managed and has consistently ranked among the top performers in the Energy Equity category, earning a FundGrade A+® Award in each of the past five years.
Two ETFs that track the S&P/TSX Capped Energy Index follow closely: Global X S&P/TSX Capped Energy Index Corporate Class ETF (TSX: HXE), up 44.2%, and iShares S&P/TSX Capped Energy Index ETF (TSX: XEG), up 44.0%.
The top-performing Canadian Equity fund this year is Brompton Canadian Cash Flow Kings ETF (TSX: KNGC), which has gained 18.4% YTD. Launched in May 2024, KNGC is an index-tracking ETF that invests in mid- to large-cap Canadian equities with high free cash flow relative to enterprise value. Its oil-heavy top holdings include Suncor Energy Inc., Imperial Oil Ltd., and Canadian Natural Resources Ltd.
The second-best performer in the Canadian Equity category is iShares Canadian Value Index ETF (TSX: XCV), up 15.2% YTD. Third is BMO SIA Focused Canadian Equity Fund, an actively-managed strategy that invests in a highly concentrated portfolio using a proprietary model based on technical indicators to identify securities with attractive risk-return characteristics. Top holdings include Celestica Inc., Aecon Group Inc., and iA Financial Corporation. The F series has returned 14.3% in 2026.
In the U.S. Equity category, iShares MSCI USA Value Factor Index ETF (TSX: XVLU) leads with a 21.7% YTD return. BMO MSCI USA Value Index ETF (TSX: ZVU) follows at 21.3%, while North Growth U.S. Equity Advisor Fund ranks third with an F series return of 20.9%. The fund is actively managed using a “growth at a reasonable price” investment philosophy and follows a responsible investing mandate based on the CIFSC RI Framework.
The top-performing Global Equity fund in 2026 is CI Global Climate Leaders Fund. Its ETF version (TSX: CLML) is up 27.6% YTD. Since its inception in July 2021, the fund has consistently ranked among the top performers in the category and has earned a FundGrade A+ Award for the past two years. It follows a responsible investing mandate focused on decarbonization with top holdings including GE Vernova Inc., NextEra Energy Inc., and Linde PLC.
The second- and third-best performers in the Global Equity category are Invesco Morningstar Global Energy Transition Index ETF CAD Hedged (TSX: IGET.F), up 27.1%, and BMO Global Innovators Fund, whose F series has gained 25.7% in 2026.
In the Emerging Markets category, the top performer is iShares MSCI Emerging Markets ex China Index ETF (TSX: XEMC), up 24.4% YTD. It is followed by two actively managed RBC funds – RBC Emerging Markets ex-China Dividend Fund and RBC Emerging Markets Small-Cap Equity Fund – which have gained 24.0% and 22.9%, respectively, in 2026.
As the year progresses, continued geopolitical uncertainty and evolving macroeconomic conditions are likely to sustain volatility. However, the number of positive returns observed in 2026 suggests that investors continue to find opportunities to generate attractive outcomes across both mutual funds and ETFs.
Brian Bridger, CFA, FRM, is Senior Vice President, Analytics & Data, at Fundata Canada Inc. and is a member of the Canadian Investment Funds Standards Committee.
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