Canada has the resources the world needs. Now it's trying to turn that advantage into economic growth.

After a period of uncertainty fuelled by U.S. trade tensions, the country is pursuing a new economic direction. The focus is on attracting investment, improving productivity and making better use of its vast natural resources.

Investors are paying attention. The recent Canada Investment Summit 2026 helped secure nearly C$500 billion in investment commitments, signalling growing institutional interest in Canada's economic potential.

The question for ETF investors is where that capital could make the biggest difference.

Two areas stand out: critical minerals and energy. Both are deeply embedded in Canada's economy, and both are becoming increasingly important as global demand for resources, electricity and infrastructure grows.

Canada's Policy Shift: Making Investment More Attractive

Canada's economic ambitions go beyond its natural resources. The federal government is also changing the rules to encourage businesses to invest more.

A central piece of this effort is the recently announced Productivity Mega Deduction.

The measure expands immediate expensing to a much broader range of eligible business assets, allowing companies to deduct investment costs in the year those assets become available for use rather than spreading deductions over several years.

For businesses considering new equipment, mining projects or infrastructure, recovering those costs sooner could make investment more attractive.

The government's objective is straightforward: encourage companies to spend, expand and improve productivity.

Of course, tax incentives alone cannot guarantee stronger economic growth. Companies still need viable projects, access to capital and sufficient demand. But the policy shift could help create a more favourable environment for long-term investment.

Critical Minerals: Canada's Strategic Advantage

As artificial intelligence, data centres and computing infrastructure expand, demand for the resources needed to support these technologies is growing.

Canada is well positioned to participate.

The country has extensive mineral resources and an established mining industry, giving it a competitive advantage as governments and businesses look to strengthen supply chains.

Recognising this opportunity, Canada launched its Critical Minerals Strategy in 2022 and has continued taking steps to develop the sector.

For investors, the opportunity extends beyond mining activity itself. Greater investment in mineral production and exploration could create new sources of growth for companies supplying materials essential to energy infrastructure and the broader economy.

The challenge is converting Canada's resource wealth into commercially successful projects. Mineral prices, development costs and execution risks will still shape investor returns.

Energy Exports: Opening Canada's Next Growth Route

Canada's energy industry has another major advantage, but also a longstanding limitation.

The country is a significant energy producer, yet most of its oil exports go to the United States. Reducing that dependence could open access to a much wider customer base.

Enter Pacific Link, the proposed West Coast oil pipeline recently designated a project of national interest.

The project is intended to provide capacity for an additional one million barrels of oil per day to reach Asian markets, creating a potential new export route for Canadian producers.

For Canada's energy industry, the appeal is clear: more customers, greater market diversification and less reliance on a single trading partner.

But the opportunity comes with a major qualification. Pacific Link remains a proposed project, and its economic benefits depend on successful development and construction.

Even so, the initiative highlights Canada's broader ambition to strengthen its energy infrastructure and expand its position in global markets.

For investors, the potential beneficiaries include not only oil and gas producers, but also the pipeline companies responsible for transporting energy to market.

5 Canadian ETFs to Watch as Investment Accelerates

If Canada's policy reforms succeed in attracting capital and expanding resource production, publicly traded companies across the minerals and energy sectors could benefit.

For ETF investors, the opportunity is not limited to one industry. Different funds provide exposure to different parts of the story, from mineral exploration to oil production and energy transportation.

Here are five ETFs worth a closer look.

1. iShares S&P/TSX Energy Transition Materials Index ETF (XETM)

For investors interested in the materials behind the global energy transition, XETM provides exposure to Canadian and international companies involved in their production and exploration.

The ETF tracks the S&P/TSX Energy Transition Materials Index, offering a way to invest in businesses that could benefit from growing demand for materials used in energy-related technologies and infrastructure.

2. iShares S&P/TSX Global Base Metals Index ETF (XBM)

XBM takes a broader approach to the metals industry.

The fund tracks the S&P/TSX Global Base Metals Index, providing exposure to Canadian and international companies engaged in base metals production and extraction.

For investors looking beyond energy-transition-specific materials, XBM offers exposure to a wider segment of the global mining industry.

3. Ninepoint Energy Fund (NNRG / NNRG.U)

Ninepoint Energy Fund offers broader exposure to companies operating across the energy and natural resources sector.

Its investment universe includes businesses involved directly or indirectly in the exploration, development, production and distribution of oil, gas, coal and uranium, alongside related activities.

For investors seeking exposure beyond a single energy segment, the fund provides access to several resource industries within one strategy.

4. Global X Equal Weight Canadian Oil & Gas Index ETF (NRGY)

NRGY offers a more targeted approach to Canada's oil and gas industry.

Part of Global X Canada's Best of Canada ETF Suite, the fund tracks the Mirae Asset Equal Weight Canadian Oil & Gas Index, providing equal-weight exposure to Canada's largest oil and gas companies.

Its focus makes it a potential option for investors looking to participate directly in the fortunes of Canadian energy producers.

5. Global X Equal Weight Canadian Pipelines Index ETF (PPLN)

While oil and gas producers attract much of the attention, getting energy to market is another part of Canada's growth story.

PPLN tracks the Mirae Asset Equal Weight Canadian Pipeline Index, providing equal-weight exposure to Canada's largest pipeline companies.

As Canada looks to expand its energy transportation infrastructure and diversify export markets, the fund offers a distinct way to gain exposure to that part of the industry.

Canada's Investment Opportunity Comes Down to Execution

Canada's economic renewal has several forces working in its favour: abundant resources, new investment incentives and an effort to reach energy customers beyond the United States.

The opportunity is significant, but so are the challenges. Policy announcements must translate into actual investment, mineral projects need to become commercially viable, and proposed energy infrastructure must move from planning to operation.

For ETF investors, the five funds offer different ways to position around these developments. XETM and XBM focus on materials and mining, NNRG and NRGY provide exposure to energy producers, while PPLN targets the infrastructure that moves energy to market.

Canada has the resources and a renewed investment agenda. The next test is whether it can turn both into lasting growth.

This article was written on October 13th, 2026. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.