This article is for informational and educational purposes only. It is not financial advice, and nothing here should be read as a recommendation to buy or sell any security. Always do your own research, or speak with a licensed financial advisor, before making investment decisions.
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The 5 Best Mining ETFs for 2026
Five TSX-listed funds cover most of the ways to get mining exposure in Canada: a large diversified gold-miner fund, a base metals fund, a junior gold fund, a pure-play copper fund, and a physical gold bullion fund. They're not interchangeable. Each answers a different question, lowest cost, broadest diversification, or highest growth potential, and getting that match right matters more than picking whichever fund is largest.
This guide works through the comparisons investors actually ask about, then breaks down where each fund lands.
Fund | TSX Ticker | Category | Net Assets (CAD) | MER |
|---|---|---|---|---|
iShares S&P/TSX Global Gold Index ETF | XGD | Global gold miners | 3.40 B | 0.60% |
iShares Gold Bullion ETF (CAD-Hedged) | CGL | Physical gold bullion | 1.95B | 0.55% |
iShares S&P/TSX Global Base Metals Index ETF | XBM | Base metals miners | 611.5M | 0.62% |
BMO Junior Gold Index ETF | ZJG | Junior gold miners | 170.18M | 0.61% |
Global X Copper Producers Index ETF | COPP | Copper producers | 176.42M | 0.79% |
Which Mining ETF Covers the Broadest Market?
XGD is the most diversified equity fund on this list, holding roughly 65 global gold miners including Barrick, Newmont, Franco-Nevada, and Wheaton Precious Metals, according to Motley Fool Canada's fund breakdown. XBM covers a different kind of breadth, spanning copper, zinc, nickel, and other base metals rather than a single commodity. ZJG and COPP are both narrower by design: ZJG concentrates in smaller-cap junior gold miners, and COPP is a pure-play copper fund with roughly 20 holdings. CGL, holding physical bullion, isn't diversified in the equity sense at all, it's a single-commodity price tracker.
How Have These Funds Performed Over 3 Years?
Fund Ticker | YTD Return | 2025 Calendar Year Return | 3-Year Return (Cumulative) | 3-Year Return (Average Annualized) |
|---|---|---|---|---|
XGD | -6.09% | 144.21% | 182.39% | 41.35% |
CGL | -7.68% | 60.82% | 98.74% | 25.73% |
XBM | 20.25% | 51.03% | 88.18% | 23.46% |
ZJG | -6.49% | 152.98% | 237.26% | 49.96% |
COPP | 22.47% | 66.62% | 162.18% | 37.89% |
Data has been drawn from the official fund performance pages of BlackRock Canada, BMO ETFs, and Global X ETFs, with all performance figures reported as of June 30, 2026. ZJG and XGD were among the top-performing Canadian ETFs in 2025 across all categories, driven largely by the strength of the gold market. Notably, ZJG outperformed its category average over the three-year period, while XGD slightly underperformed despite its larger asset base and lower volatility profile.
Past performance is not indicative of future results, and investors should be particularly mindful of the cyclical nature and inherent volatility of commodity and resource-focused sectors.
What Do Analysts Expect Next?
Central banks have become gold's dominant buyer. J.P. Morgan Global Research estimates central banks purchased gold at an average pace of roughly 225 tonnes per quarter from 2021 through 2025, and the World Gold Council's Q1 2026 data shows official-sector buying still running at 244 tonnes for the quarter. Bank price targets vary (Goldman Sachs cut its year-end target to $4,900 in June 2026, Bank of America's sits at $6,000), but the buyer base is the part most analysts agree on, which matters most for XGD, ZJG, and CGL.
Copper's story is structural, not cyclical. Wood Mackenzie projects global refined copper demand will rise about 24 percent by 2035, driven by electrification and grid infrastructure, a tailwind for both XBM and COPP.
The largest, most diversified gold-miner fund on this list, and the default core holding for broad Canadian gold sector exposure.
Snapshot: $47.76/unit · $3.40B net assets · 0.60% MER · 1.02% distribution yield · 66 holdings
Holds physical gold bullion rather than mining shares, tracking the gold price directly with no company-specific risk and the lowest MER on this list.
Snapshot: ~$30.63/unit · ~$1.95B net assets · 0.55% MER · 0.00% distribution yield
The base metals and copper-adjacent option, with top holdings including Freeport-McMoRan and First Quantum Minerals.
Snapshot: ~$35.35/unit · $611.5M net assets · 0.60% MER · 0.80% distribution yield · 54 holdings
The highest-growth, highest-volatility fund on this list, concentrated in smaller-cap gold miners like Royal Gold and Equinox Gold.
Snapshot: $215.74/unit · $170.18 net assets · 0.61% MER · 0.13% distribution yield
Global X Copper Producers Index ETF (TSX: COPP)
The only pure-play copper fund, holding roughly 20 North American copper producers led by First Quantum Minerals and Freeport-McMoRan.
Snapshot: $56.95/unit · $176.42 M net assets · 0.79% MER · 0.14% distribution yield
Which Fund Fits Your Goal?
If your priority is... | Consider... | Because... |
|---|---|---|
Physical gold price exposure | CGL | Designed to track the price of gold bullion directly. |
Broad gold mining exposure | XGD | Offers exposure to a wide range of global gold mining companies. |
Electrification and base metals | XBM or COPP | XBM covers a range of base metals; COPP focuses specifically on copper. |
Exposure to early-stage mining | ZJG | Focuses on junior gold miners which are generally more sensitive to exploration outcomes. |
This is not a recommendation, but a starting point to help align your fund choice with your investment goals.
Investor Takeaways
There's no single "best" fund here, only a best fit. Each of the five takes a different approach: broad gold exposure (XGD), bullion tracking (CGL), base metals or copper (XBM, COPP), or concentrated junior miners (ZJG).
Mining ETFs are more cyclical than most equity sectors, with a 93 percent correlation between mining market caps and commodity prices. Entry timing matters more here than in a broad market index fund.
2025's strong returns reflect a gold and copper cycle, not a permanent growth rate. Past performance across all five funds should be read in that context.
Fee differences across the four equity funds are small. Commodity theme and risk tolerance matter more to fund selection than a few basis points of MER.
Frequently Asked Questions (FAQ)
1. Are Mining Stocks Cyclical?
Yes, mining stocks are highly cyclical and move in close lockstep with commodity prices. This makes them more volatile than broader equity markets, often leading to sharper booms and busts. Because performance is so heavily dependent on these price swings, entry timing is critical for investors, as buying near a market peak can lead to extended recovery periods even for well-run companies.
2. What is an MER and which mining ETF is cheapest?
The Management Expense Ratio (MER) is the annual percentage fee deducted from an ETF’s performance to cover operating costs. While CGL is cheapest at 0.55%, it holds physical gold rather than mining stocks. Among true mining funds, XGD and XBM are the lowest at 0.60%. Given how close these fees are, focus on a fund's holdings rather than its MER.
3. How do macro factors affect mining stocks?
Beyond individual commodity trends, three main forces drive the sector: interest rates, which impact gold prices; the strength of the U.S. dollar, which affects global commodity demand; and industrial activity, which dictates the performance of base metals like copper. Because of these links, broad economic growth and central bank policies are just as important to your mining investments as the company-specific fundamentals.
Disclaimer: This article is published by Mining Front for informational and educational purposes only and does not constitute financial, investment, tax, or legal advice. This commentary is independent and has been prepared without compensation from any of the companies mentioned, and neither Mining Front nor its contributors hold positions in the securities discussed unless explicitly disclosed. Investing in the mining sector is highly speculative and involves substantial risks, including the potential loss of principal; forward-looking statements, resource estimates, and production projections are subject to material market and technical uncertainties and should not be relied upon as guarantees of future performance. Readers should conduct their own independent due diligence and consult with a licensed financial advisor before making any investment decision; please read our full legal disclaimer at our Disclaimer Page for further information.
