The Smartest Growth ETF to Buy With $1,000 Right Now

If you have an extra $1,000 to invest with, one underrated option that stands out right now lies with a growth ETF that has exposure to Canada’s fast-growing tech sector.

This gives investors access to the biggest names in the tech sector without the need to pick individual stocks. In fact, owning that single growth ETF provides investors with an entire basket of tech holdings, making it a solid option right now.

But what growth ETF should investors consider right now? One option to consider is iShares S&P/TSX Capped Information Technology Index (TSX:XIT).

What’s driving XIT’s performance

In case you’re unfamiliar with XIT, it’s one of the most concentrated ETFs in Canada. That concentration is tilted toward tech stocks, which offer more growth potential than other options on the market. Its holdings are heavily weighted toward a few major names, and that concentration has been a key driver of its long‑term returns.

XIT is the growth ETF that growth investors want in their portfolios. The tech ETF has realized an impressive 17% annualized return over the past decade. That performance highlights how a focused tech allocation can grow, especially throughout market cycles.

As to the top holdings in the fund, some of the largest positions are in well-established segment leaders.

Celestica (TSX:CLS) is an electronics manufacturing services giant that benefits from surging AI hardware demand.

Shopify (TSX:SHOP) is one of the largest components and remains a major force behind its performance. Shopify’s rise as a global e‑commerce platform has created significant value for shareholders. And Shopify is by no means the only callout to note.

Constellation Software (TSX:CSU) is another major contributor. Constellation is known for acquiring and operating software businesses. The company is also known for its knack for identifying and then acquiring growth targets.

Another significant position in the growth ETF is CGI (TSX:GIB.A), which operates as a global IT consulting and services firm. CGI balances out the high growth of the other two with a steady stream of revenue from both enterprise and government contracts.

How a $1,000 investment in XIT can compound over time

A big part of XIT’s appeal is how well it has compounded for long‑term investors. And the performance of XIT over the past decade can be summed up in a single word. Incredible.

By way of example, let’s look at a $1,000 investment into the growth ETF. Assuming the investment was made a decade ago, that initial investment would now be worth nearly $5,000 in 2026.

Part of the reason for that stellar growth is the ETF’s concentrated exposure. Specifically, when those top holdings perform well, the overall fund benefits. This structure allows investors to participate in the upside of leading tech companies without needing to research or manage individual stocks.

The other key factor is time. Compounding works best when investors stay invested. While tech stocks are more exposed to market volatility, long‑term trends, such as shifts toward digital commerce, cloud computing, and software‑driven business models have fueled that growth.

The bottom line on choosing XIT for growth

XIT stands out as one of the best growth ETF options to get exposure to Canada’s tech sector. For those looking to put $1,000 to work in a growth ETF today, XIT offers a clear, focused path to invest in Canada’s technology landscape.

In my opinion, XIT is one of the best options on the market for investors seeking a straightforward way to tap into tech‑driven growth. With the tech sector continuing to surge higher, XIT is positioned for more upside.

The post The Smartest Growth ETF to Buy With $1,000 Right Now appeared first on The Motley Fool Canada.

Should you invest $1,000 in iShares S&P/TSX Capped Information Technology Index ETF right now?

Before you buy stock in iShares S&P/TSX Capped Information Technology Index ETF, consider this:

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* Returns as of April 20th, 2026

More reading

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• 2 Growth Stocks Set Up for Massive Gains in 2026
• The Typical TFSA Balance for Canadians Approaching 60
• Top Canadian Stocks to Buy With $10,000 in 2026

Fool contributor Demetris Afxentiou has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends CGI, Celestica, and Constellation Software. The Motley Fool has a disclosure policy.