XIC vs XIU is a choice between two iShares (BlackRock Canada) Canadian stock index ETFs that own the same big companies. The differences are the fee, how far down the market each fund reaches, and how concentrated each one is. YieldMaple checked iShares Canada’s XIC and XIU pages and both holdings files on October 8, 2026. This page is general education, not financial advice.
XIC vs XIU at a glance
| Feature | XIC | XIU |
|---|---|---|
| MER | 0.06% (better on this row) | 0.17% |
| Management fee | 0.05% (better on this row) | 0.15% |
| Full name | iShares Core S&P/TSX Capped Composite Index ETF | iShares S&P/TSX 60 Index ETF |
| Index tracked | S&P/TSX Capped Composite Index | S&P/TSX 60 Index |
| Number of holdings | 217 (better on this row) | 61 |
| Net assets (Oct 7, 2026) | $35.3 billion (better on this row) | $22.7 billion |
| Inception date | February 16, 2001 | September 28, 1999 |
| 12-month trailing yield (Oct 6, 2026) | 1.98% | 2.14% (better on this row) |
| Distributions paid | quarterly | quarterly |
| Ten largest holdings, combined | about 38.3% (better on this row) | about 47.7% |
| Listed on | the Toronto Stock Exchange | the Toronto Stock Exchange |
Source: iShares Canada (BlackRock) product pages and holdings files for XIC and XIU, checked October 8, 2026. Net assets, holdings and yields change daily.
In sentences: XIC’s MER is 0.06% (management fee 0.05%) and XIU’s is 0.17% (management fee 0.15%). XIC listed 217 holdings and $35.3 billion in net assets; XIU listed 61 holdings and $22.7 billion. XIC’s inception date is February 16, 2001 and XIU’s is September 28, 1999. Both pay distributions quarterly and both are listed on the Toronto Stock Exchange.
What is the difference between XIC and XIU?
XIC holds 217 Canadian stocks for a 0.06% MER, while XIU holds 61 large ones for 0.17%. Everything else follows from those two facts.
XIC tracks the S&P/TSX Capped Composite Index. BMO’s fact sheet for ZCN, a fund on the same index, describes that index as representing approximately 95% of the Canadian equity market, with any single stock capped at 10% of the index.
XIU tracks the S&P/TSX 60 Index. iShares describes the fund as exposure to large, established Canadian companies.
The two holdings files, both dated October 7, 2026, show how the funds relate:
- Every one of XIU’s 61 stocks is also in XIC.
- Those shared stocks made up about 80% of XIC.
- The other 156 stocks in XIC, which XIU does not hold, made up about 20% of XIC.
- The largest stock in XIC that is missing from XIU was Pan American Silver, at 0.53% of XIC.
So XIC is roughly four-fifths XIU plus a one-fifth slice of smaller Canadian companies.
What do XIC and XIU hold?
Both funds are led by the same three companies: Royal Bank of Canada, Shopify and Toronto-Dominion Bank. Each one takes a bigger share of XIU, because XIU spreads its money over fewer stocks.
| Feature | XIC | XIU |
|---|---|---|
| Royal Bank of Canada | 7.57% | 9.42% |
| Shopify | 5.72% | 7.12% |
| Toronto-Dominion Bank | 5.35% | 6.66% |
| Ten largest holdings, combined | about 38.3% (better on this row) | about 47.7% |
| Financials sector | 33.71% (better on this row) | 39.90% |
| Energy sector | 16.47% | 17.09% |
| Materials sector | 18.05% | 13.58% |
Source: iShares Canada holdings files for XIC and XIU, dated October 7, 2026. Sector and top-ten weights are sums of the published holding weights.
Royal Bank was 7.57% of XIC and 9.42% of XIU. Shopify was 5.72% and 7.12%. TD was 5.35% and 6.66%. The ten largest holdings added up to about 38.3% of XIC and about 47.7% of XIU, a gap of about 9 percentage points.
The sector mix shifts in the same direction. Financials were 33.71% of XIC and 39.90% of XIU. Energy was 16.47% of XIC and 17.09% of XIU. Materials go the other way: 18.05% of XIC against 13.58% of XIU, because materials is the largest sector among the stocks XIC adds: 51 of the 156 are materials companies.
Both funds follow Canadian stock indexes, so neither adds US or international markets. For a full breakdown of the broader fund, see the XIC review.
Which has the lower MER, XIC or XIU?
XIC has the lower MER: 0.06%, against 0.17% for XIU, a gap of 0.11 percentage points. Put another way, XIU’s MER is nearly three times XIC’s.
In dollars, XIC’s MER is about $6 a year for every $10,000 held and XIU’s is about $17 a year for every $10,000 held. The difference is about $11 a year for every $10,000 held.
A worked example with a hypothetical balance:
- On $50,000, XIC’s MER comes to about $30 a year.
- On the same $50,000, XIU’s MER comes to about $85 a year.
- The gap is about $55 a year, and it grows as the balance grows.
The MER is not billed separately. It is taken out of each fund’s net asset value, so it shows up as a slightly lower return rather than as a charge on a brokerage statement. The gap is real but small in dollar terms, and it is the one difference between the two funds that is known in advance.
Has XIC or XIU performed better?
Neither has pulled far ahead: XIC led over the latest one, three and five years, and XIU led over ten, per iShares’ total returns to September 30, 2026.
| Feature | XIC | XIU |
|---|---|---|
| 1 year | 19.94% (better on this row) | 19.64% |
| 3 years, annualized | 24.96% (better on this row) | 24.19% |
| 5 years, annualized | 15.11% (better on this row) | 14.72% |
| 10 years, annualized | 12.35% | 12.45% (better on this row) |
| 2021 | 25.06% | 27.90% (better on this row) |
| 2022 | −5.85% (better on this row) | −6.36% |
| 2023 | 11.67% | 11.82% (better on this row) |
| 2024 | 21.53% (better on this row) | 20.77% |
| 2025 | 31.59% (better on this row) | 28.89% |
Source: iShares Canada product pages for XIC and XIU, checked October 8, 2026. Total returns after fees. Past performance does not predict future returns.
Over five years XIC returned 15.11% a year and XIU 14.72%, a lead of about 0.4 percentage points a year for XIC. Over ten years XIU returned 12.45% a year and XIC 12.35%, a lead of 0.1 percentage points a year for XIU, even after its higher fee. Over one year the figures were 19.94% for XIC and 19.64% for XIU, and over three years 24.96% and 24.19%.
The calendar years show the lead changing hands. XIU was ahead in 2021 (27.90% against 25.06%) and in 2023 (11.82% against 11.67%). XIC was ahead in 2024 (21.53% against 20.77%) and in 2025 (31.59% against 28.89%). In 2022, the one losing year of the five, XIC fell less: −5.85% against −6.36%.
The pattern fits what the funds hold. When the smaller companies in XIC do better than the large ones, XIC pulls ahead; when large companies lead, XIU does. The fee gap of 0.11 percentage points a year is the only part of the difference that repeats every year. Past returns do not predict future returns.
Does XIC or XIU pay a higher dividend?
XIU pays slightly more: its 12-month trailing yield was 2.14% against 1.98% for XIC on October 6, 2026, per iShares Canada.
That is a gap of about 0.16 percentage points. On a hypothetical $50,000 holding it is about $80 a year more in distributions from XIU, before tax. XIC pays distributions quarterly and so does XIU.
Neither fund is built for income. Canadian dividend ETFs had higher trailing yields: Vanguard’s VDY had a 12-month trailing yield of 3.11% and iShares’ XEI 3.51%. The guide to the best Canadian dividend ETFs compares those funds.
Is XIU older and bigger than XIC?
XIU is older, but XIC is now the bigger fund: $35.3 billion in net assets against $22.7 billion for XIU on October 7, 2026.
On age, iShares lists XIU’s inception date as September 28, 1999 and XIC’s as February 16, 2001. iShares also says XIU started trading in 1990, which it describes as making XIU the first ETF in the world. iShares calls XIU one of the largest and most liquid ETFs in Canada.
For an investor buying a few thousand dollars at a time, both funds are very large, and age adds nothing to the return. The fee and the holdings are the differences that carry forward.
When XIU can still make sense
XIC is cheaper and broader, but there are situations where an investor might reasonably hold XIU:
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Large companies only, on purpose. XIU leaves out the 156 smaller companies that make up about 20% of XIC. An investor who wants only large, established Canadian companies gets exactly that.
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A slightly higher yield. XIU’s trailing yield was 2.14% against 1.98%.
-
An existing XIU position with a large gain in a non-registered account. Selling to switch realizes a capital gain. The CRA lists the capital gains inclusion rate as 1/2 (generally, for 2025), so part of that gain is added to taxable income. The tax is due once; the fee saving of about $11 a year for every $10,000 held arrives slowly, year by year.
Inside a TFSA the tax question disappears: the CRA says interest, dividends and capital gains earned in a TFSA are generally tax-free, even when you withdraw. There, the cost of switching is the commission on two trades.
Where XIC and XIU fit in a portfolio
Both funds track Canadian stock indexes, so either one is a building block rather than a complete portfolio.
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All-in-one ETFs already include Canada. XEQT holds XIC directly, at about 25% of the fund. VEQT holds Vanguard’s Canada all cap ETF at 30.58%. An investor who owns one of those already has broad Canadian exposure. The XEQT vs VEQT comparison covers both.
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A do-it-yourself mix. XIC or XIU can be the Canadian piece next to a US fund such as VFV (MER 0.08%), an international fund such as XEF (0.22%) and an emerging-markets fund such as VEE (0.24%). The investor does the rebalancing.
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Close substitutes for XIC. BMO’s ZCN tracks the same index at the same 0.06% MER, and Vanguard’s VCN charges 0.05%. The best Canadian ETFs guide lines them up.
Where can you buy XIC or XIU?
Both ETFs trade on the Toronto Stock Exchange and can be bought at any brokerage that offers Canadian-listed ETFs; several charge no commission:
- Wealthsimple — $0 commission on listed Canadian stocks and ETFs.
- Questrade — $0 to buy and sell Canadian and U.S.-listed stocks and ETFs.
- National Bank Direct Brokerage — $0 on online Canadian and U.S. stock and ETF trades.
- BMO InvestorLine — $0 per stock or ETF trade on Canadian and US exchanges, online or agent-assisted.
Standard commissions at the other big-bank brokerages are $9.95 per trade at RBC Direct Investing, $9.99 at TD Direct Investing and $6.95 at CIBC Investor’s Edge. RBC Direct Investing waives that commission on the funds on its commission-free ETF list, which included both XIU and XIC when YieldMaple read it on October 8, 2026.
At a per-trade commission the cost of buying can outweigh the fee difference between the funds. Twelve monthly purchases at $9.99 cost about $120 a year, more than ten times the $11 a year that separates XIC from XIU on a hypothetical $10,000. The Wealthsimple vs Questrade comparison and our complete Wealthsimple guide cover two of the no-commission brokerages in detail.
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The verdict: XIC or XIU?
- XIC is the cheaper and broader fund: a 0.06% MER, 217 holdings and less weight in its ten largest companies (about 38.3%).
- XIU costs 0.17%, lists 61 holdings, all large companies, and paid a slightly higher trailing yield (2.14% against 1.98%).
- Returns have been close, with each fund ahead over different periods.
For someone starting a Canadian stock position today, the known difference is the fee, and it favours XIC. For someone who already holds XIU inside a registered account, a switch costs two trades. For someone holding XIU with a large gain in a non-registered account, the tax on selling is the main cost to weigh. This page is general education, not financial advice.
Related comparisons and guides
- Best Canadian ETFs — the wider field of Canadian-listed index ETFs
- XEQT vs VEQT — the two all-in-one equity ETFs compared
- VFV vs XEQT — US large-cap against a global all-in-one
- Wealthsimple vs Questrade — two no-commission brokerages compared