ETF News

Why natural gas led markets last week

Natural gas was the clear standout across Canadian-listed ETFs last week, driven by extreme winter conditions in North America. A powerful cold snap across large parts of the United States sharply increased heating demand, while freezing temperatures disrupted production and strained power grids. The imbalance between supply and demand pushed US natural gas prices decisively higher, spilling over into ETF performance.

Within the Canadian ETF universe, this translated into a strong move for the Natural Gas segment, despite its relatively small footprint. While the broader Energy ETF group posted solid but moderate gains, natural gas-linked exposure delivered outsized weekly performance, underscoring how weather-driven shocks can dominate short-term commodity pricing.

At the group level, Canadian energy ETFs gained 3.0% week-on-week, extending their positive start to the year. However, flows remained mixed, reflecting investor caution after strong rallies late in 2025 and ongoing volatility in oil and gas markets.

Canadian energy ETFs: steady gains, selective flows

Broad Canadian energy ETFs benefited from firm crude prices and resilient energy equities, but performance dispersion was notable.

The iShares S&P/TSX Capped Energy Index ETF (XEG) rose 2.65% over the week, supported by its heavy exposure to Canada’s large integrated oil and gas producers. Despite the positive performance, the fund continued to see year-to-date outflows, suggesting some investors are using rallies to reduce exposure after a strong 2024.

Equal-weight strategies delivered similar but slightly softer returns. The Global X Equal Weight Canadian Oil & Gas Index ETF (NRGY) and the BMO Equal Weight Oil & Gas Index ETF (ZEO) both posted gains just above 2.3%, with NRGY attracting modest weekly inflows, reflecting continued interest in diversified exposure across mid- and large-cap producers.

More actively managed exposure showed greater volatility. The Ninepoint Energy Fund (NNRG) outperformed peers with a 5.30% weekly gain, but still recorded outflows, highlighting the push and pull between performance chasing and profit-taking within the sector.

Natural gas ETF stands out despite small size

The strongest move came from the Global X Natural Gas ETF (HUN), the only pure-play natural gas ETF listed in Canada. The fund surged 12.54% week-on-week, significantly outperforming the broader energy complex.

While its assets under management remain modest at just over CAD 9 million, HUN’s sharp move illustrates how leveraged exposure to natural gas prices can amplify short-term market moves. Flows were flat during the week, suggesting the performance was largely price-driven rather than the result of new allocations.

Precious metals catch up as safe-haven demand returns

Precious metals delivered another strong week, building on their already impressive 2025 performance. Heightened geopolitical tensions, trade uncertainty, and expectations of easier monetary policy continued to support demand for hard assets.

At the group level, Canadian-listed Precious Metals ETFs gained 7.19% week-on-week, with strong inflows reinforcing investor conviction. Gold and silver both contributed meaningfully, though silver once again led on performance.

Gold ETFs: strong inflows confirm investor appetite

Gold-focused ETFs posted robust gains, supported by both price appreciation and sustained inflows.

The iShares S&P/TSX Global Gold Index ETF (XGD) rose 7.87% over the week and attracted nearly CAD 97 million in new capital, making it one of the most actively bought Canadian commodity ETFs. Bullion-backed products also saw solid demand, with the iShares Gold Bullion ETF (CGL) and BMO Gold Bullion ETF (ZGLD) both recording strong weekly inflows alongside gains of more than 5%.

Silver ETFs extend their leadership

Silver remained the standout within precious metals, combining strong performance with renewed investor interest.

The iShares Silver Bullion ETF (SVR) gained 8.95% on the week and attracted over CAD 43 million in inflows, while the Global X Silver ETF (HUZ) advanced more than 14%, reflecting silver’s higher beta to rising precious metals prices.

Performance dispersion remained wide, but year-to-date returns across silver ETFs now exceed 35–40%, reinforcing silver’s role as the higher-octane counterpart to gold in the current market environment.

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