So much for the February blahs. Canadian stocks delivered some February wows. We can add in international developed and international developing markets as well. The U.S. market stays in the basement where it resided in 2025. For the month, the TSX added 6.9%, marking its biggest monthly gain since November 2020. The Toronto market has advanced for 10 straight months, the longest such winning streak since 2017. We can largely thank gold and materials. Let’s take a look at the February wows.
Here’s the scorecard for core cap weighted indices, in Canadian Dollars. The first figure is for February, the second is total return year-to-date.
- Canada XIC 6.87% / 8.65%
- U.S. XUS -1.35% / +0.45
- International XEF 4.64% / 9.71%
- Developing XEM 5.18% / 13.86%
The U.S. Dollar slipped a couple of pennies vs the Canadian Dollar and Euro so far in 2026.
What’s driving the Canadian market returns? As I wrote in why BMO’s Low Volatility ZLB is under performing, we can thank the materials sector.
And check out the energy in Canadian oil and gas stocks …
Oil and gas stocks are up 562% from that time I put that idea on the table in late 2020. As always, that was not advice, but another idea for consideration.
Of course, we are well-hedged against any energy shock due to the war in Iran.
In November of 2025 I took a look at investing in Canadian pipelines and utilities. I’m enjoying the ‘over weighting’ I did from the time of that post.
Canadian bank earnings
The Canadian banks reported very solid earnings this past week. The banking index (ZEB.T) was down 0.21% for the week. CIBC and National Bank bucked the downtrend.
For the week:
- RBC down 3.48%
- TD up 0.14%
- Scotiabank down 2.20%
- BMO down 1.7%
- CIBC up 1.32%
- National up 6.53%
Canadian Asset Allocation ETFs
AI provided this summary of year-to-date returns for the Canadian Asset Allocation ETFs. The returns do not include Friday’s modest market drop.
It’s a good time to hold a sensible low cost global ETF portfolio.
Bonds are pitching in, in 2026
I’ve added modestly to my bond position in 2026. If all hell breaks loose for the Canadian economy, bonds will likely be there to do their thing – go up when stocks get hit.
Bonds work in concert with cash and defensive equities. I’m lovin’ our defensives.
Here’s HUTS …
And consumer staples …
When markets got choppy, our defensives rose to the occasion …
U.S. defensive equities
Our U.S. defensives are performing very well in 2026.
I will post an update mid week on our U.S. portfolio names.
I have long put forth the idea that a retiree or someone who is in the retirement risk zone might hedge the overvaluation of the U.S. market. It might be a challenging start date for retirees who have an extreme overweight to the U.S. stock market.
I suggested we might consider one of the global asset allocation ETFs or a value tilt such as iShares U.S. Quality Dividend ETF XDU-T/XDU.U-T. The Canadian Dollar version is up over 10.1% in 2026 as the U.S. stock market treads water. Large cap, mid cap and small cap value ETFs have also performed well.
Once again, not advice, but my personal portfolio themes are playing out nicely. While we might be familiar with the phrase ‘core and explore’, I might need to trademark ‘core and defend’.
A few Sunday reads
And speaking of asset allocation ETFs and creating retirement income, Jonathan Chevreau at Findependence Hub takes a look at the cautious approach of Vanguard, with respect to the VRIF ETF. That ETF offers a 4% spend rate, with monthly income from a conservative AA portfolio.
Plus, a look at equal weight ETFs.
From The Retirement Manifesto – How to refill your buckets in retirement. I prefer traditional asset allocation and traditional rebalancing, but always to each his or her own.
Here’s the week in review from Dividend Hawk.
At Tawcan, Bob looks at 5 stocks and ETFs he’s looking to buy in 2026.
At Stocktrades, Dan offers that these stocks are AI proof – he’s adding on a regular schedule.
A recent report said Canadians think they’ll need $1.7 million to retire …
Single tax filers have it so unfair …
Of course, the number is different for everyone. I’ve seen so many retire comfortably, and happily, with very modest portfolios. Others will have very aggressive spending needs in retirement. You’ll have to do your spending estimates and then run the numbers on a retirement cash flow calculator.
It’s the kinda stuff we do (and learn) at Retirement Club for Canadians. You can join us for 2026 sessions. Use Contact Dale for more information.
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Here’s Canada’s top-performing Robo Advisor, Justwealth. You can get advice, planning and low-fee ETF portfolios all at one shop. Canadians can have it all.
Consider Justwealth for RESP accounts. That is THE option in Canada with target date funds that adjust the risk level as the student approaches the College or University start date.
OUR SAVINGS ACCOUNTS
Make your cash work a lot harder at EQ Bank. RRSP and TFSA account rates are at 1.50%, other savings rates up to 2.75%. You’ll find some higher rates on GICs up to 3.85%. They also offer U.S. dollar accounts at 2.75%. We use EQ Bank, they have been awesome.
OUR CASHBACK CREDIT CARD
We make between $40 to $70 every month! And that’s on everyday spending. There are no fees with …
The Tangerine Cash Back Credit Card
For January we received $56.56 in cash from everyday spending. You can select 3 categories for 2.0% cash back. Remaining categories pay up at 0.50%.
That cash went into my TFSA account to help buy some CBIL-T, CHPS-T, HURA-T and bitcoin. I always top up the cashback dollars and make a few investments.
Join Retirement Club 2026
Do retirement right. … a series of monthly Zoom Presentations, newsletters, plus a secure and private online space where we learn, share ideas and connect with members. Here’s the Retirement Club overview page. There are just a few spots remaining for the 2026 retirement-changing sessions. You can join us for a Zoom Tour of Retirement Club this coming week. We’ll offer a couple of time slots.
Hit Contact Dale at top right of this page for details.
We’ll take you through the three pillars of Retirement Club.
Make sure you’re doing retirement right. It’s also suitable for those who are approaching retirement, we need to prepare in advance and understand what we’re ‘getting into’.
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