Top 10 Recession-Resistant Stocks and ETFs in Canada

The economy moves in cycles. Sometimes, growth feels unstoppable, and other times, it slows down. As an investor, knowing how to prepare for a recession is the key to navigating uncertain times. You don’t need to make risky bets or guess where the market is heading. You just need to know where to look.

Some stocks and ETFs perform better than others when times get tough. They’re called recession-resistant for a reason. These companies usually sell essential products or services that people use even during downturns. Groceries, utilities, healthcare, and telecom services don’t disappear just because consumer spending dips. That’s what gives these investments their staying power.

The Top 10 Recession-Resistant Stocks & ETFs in Canada

This list introduces you to ten Canadian and US-listed stocks and ETFs you can watch right now. You’ll find names focusing on stability, consistency, and long-term performance. As you prepare for a recession, this is where your research can begin.

1. Loblaw Companies Limited (TSX: L)

Loblaw is one of Canada’s largest grocery and pharmacy retailers, with familiar banners like Loblaws, No Frills, and Shoppers Drug Mart. These stores remain essential during every economic cycle. When households feel pressure from rising costs or reduced income, they must buy groceries and fill prescriptions. That makes Loblaw a stable part of many portfolios during a slowdown.

You’ll notice that Loblaw’s private label brands, like No Name and President’s Choice, become more popular when budgets tighten. These lower-priced alternatives help the company maintain sales volume, even when consumers cut back on discretionary spending. By offering value and convenience across its network of stores, Loblaw keeps people coming through the door.

If you’re looking to prepare for a recession with companies that offer consistent demand, Loblaw fits the bill. It operates with a strong focus on efficiency and scale, and its mix of food and health products gives it a well-rounded edge. This stock gives you access to a business built around everyday needs.

2. Fortis Inc. (TSX: FTS)

Fortis delivers electricity and natural gas to millions of customers in Canada, the United States, and the Caribbean. Utility services remain essential no matter how the economy performs. Households and businesses rely on energy for heating, lighting, and day-to-day operations. That steady demand gives Fortis a strong foundation during economic downturns.

The company also offers a reliable dividend that many investors value during a recession. Fortis has increased its dividend every year for over five decades. That kind of consistency helps provide income and confidence when markets become unpredictable. You can track that stability through long-term performance and payout history.

Fortis deserves attention while searching for a company focusing on long-term growth and stable cash flow. It runs regulated operations with predictable revenues, and its steady performance exposes you to a dependable part of the market.

3. North West Company (TSX: NWC)

North West Company operates in regions that most retailers overlook. Its stores serve remote northern communities across Canada, Alaska, and the Caribbean, offering groceries, general merchandise, and financial services. These communities depend on North West for daily essentials, which gives the company a steady revenue stream even during economic challenges. It has carved out a niche where competition is limited and customer loyalty runs deep. That unique market position allows North West to maintain pricing power and avoid the fluctuations that often affect retailers in urban areas.

Its long-term strategy focuses on efficiency and supply chain reliability, which helps the company overcome the challenges of operating in isolated areas. It also continues to modernize its operations and improve customer service through digital initiatives. North West brings stability and purpose if you want a smaller Canadian stock with a consistent track record. The company pays a solid dividend and carries a business model that reflects resilience and community connection.

4. Metro Inc. (TSX: MRU)

Metro is another major grocery and pharmacy player in Canada. It operates stores like Metro, Super C, and Jean Coutu, with a strong presence in Quebec and Ontario. Even when the economy slows, people must buy food and medicine. That makes Metro a strong defensive stock that stays relevant when spending habits shift.

The company runs an efficient business and has grown steadily through smart acquisitions and a focus on regional strength. It also continues to improve its online grocery services and loyalty programs. These moves keep customers engaged and help the company adapt as shopping habits evolve.

Metro is a clear choice if you’re looking for a stock that blends essential products with reliable operations, enabling you to prepare for a recession. Its scale, focus on value, and strong retail network make it a steady player in any economic climate.

5. Telus Corporation (TSX: T)

Telus provides mobile, internet, and television services across Canada. People continue to rely on internet and mobile access regardless of the broader economy. That ongoing demand makes telecom one of the more recession-resistant industries, and Telus remains a key name in the space.

Beyond telecom, Telus also invests in healthcare technology through its Telus Health division. This part of the business focuses on digital health records, virtual care, and pharmacy services. It brings in recurring revenue and adds an extra layer of stability. This mix of services gives Telus more than one stream of strength.

When considering to prepare for a recession, Telus offers a combination of essential services and a long-term vision. Its dividends, growth potential, and role in everyday connectivity make it a company worth keeping on your watchlist.

6. BCE Inc. (TSX: BCE)

BCE is one of Canada’s largest communications companies, offering mobile, internet, TV, and media services under the Bell brand. It serves millions of Canadians and plays a significant role in the country’s digital infrastructure. BCE earns consistent revenue from its telecom services, which people use in all economic conditions. Its network investments help it maintain a competitive edge and connect customers nationwide.

The company also offers one of the highest dividend yields among large Canadian firms. That makes it especially appealing to income-focused investors looking for steady cash flow. While its media division can experience more ups and downs, BCE’s telecom segment remains its core strength. If you aim to add a dependable name to your portfolio, BCE stands out as a well-established company with strong roots and ongoing relevance. Consider it as you prepare for a recession.

7. Healthcare Leaders Income ETF (TSX: HHL)

HHL gives investors access to a collection of large North American healthcare companies. It focuses on pharmaceuticals, medical devices, and healthcare services leaders, including names like Johnson & Johnson, Merck, and UnitedHealth Group. These businesses continue to operate at full strength during economic slowdowns because demand for healthcare rarely drops. That makes HHL a practical option if you aim to keep your investments steady during periods of uncertainty.

The ETF also distributes income monthly, which can add predictability to your investment returns. It suits those who prefer a hands-off approach while still benefiting from dividend payments and sector diversification. HHL’s design supports long-term income generation and offers exposure to a defensive sector that rarely loses relevance. If you’re looking for a straightforward way to invest in reliable healthcare names, HHL simplifies the process.

8. iShares Canadian Select Dividend Index ETF (TSX: XDV)

XDV holds a collection of Canadian companies that pay strong and consistent dividends. These firms come from financials, utilities, and telecommunications sectors, which often generate stable earnings. That makes this ETF appealing for those who want to earn a regular income while holding on to well-established businesses.

The ETF focuses on quality over quantity. It includes companies with a track record of sustainable dividends, so you’re getting high yields and reliability. It’s designed to provide monthly distributions, adding consistency that many investors appreciate during uncertain times.

You can use XDV to build a steady foundation in your portfolio. It’s a way to stay invested in Canadian companies prioritising shareholder returns. If you’re looking for dependable income and broad exposure to dividend-focused names, XDV offers a clear path.

9. iShares Core Canadian Universe Bond Index ETF (TSX: XBB)

XBB is a broad-based bond ETF that tracks a mix of Canadian government and investment-grade corporate bonds. It’s designed to offer stability and reduce risk, especially when equity markets become more volatile. This ETF helps balance your portfolio by providing a consistent source of income through interest payments. Bonds included in XBB tend to be higher quality, which supports capital preservation even when other asset classes experience stress.

By holding XBB, you can access a professionally managed selection of fixed-income investments, all within a single product. You don’t need to pick individual bonds or worry about maturity dates. The ETF automatically manages those decisions for you, making it easier to stay diversified and protected. If you’re interested in keeping your portfolio grounded and less exposed to sudden swings as you prepare for a recession, XBB remains a trusted option.

10. Vanguard Consumer Staples ETF (NYSE: VDC)

VDC includes major U.S. companies that produce everyday goods like food, beverages, and household items. People continue to buy these products in any economy, which helps the ETF hold its value when markets shift. Brands like Procter & Gamble, Coca-Cola, and Walmart comprise a large part of its holdings.

This ETF provides broad exposure to the consumer staples sector without requiring the purchase of individual stocks. It distributes dividends quarterly, offering a steady income stream while maintaining exposure to companies with a long-standing global presence.

If you’re thinking about balance, VDC adds a layer of dependability. It holds companies that have proven their resilience over decades. You can use this ETF to round out your portfolio with exposure to goods that stay in demand no matter what changes in the market.

Exploring Other Reliable Investment Options in a Downturn

Several other investment options can help you stay steady when the economy starts to contract. Government bonds remain a popular choice. The federal or provincial government backs them and tends to offer stable returns with lower risk. GICs, or Guaranteed Investment Certificates, work similarly. You lock in your money for a set period, and in return, you receive a fixed interest rate. These two options don’t move with the stock market and can bring calm during periods of high volatility.

Real Estate Investment Trusts, or REITs, expose you to property markets without the need to own or manage buildings yourself. Many REITs focus on residential or commercial properties that generate income even when markets slow. At the same time, keeping some of your assets in cash or cash equivalents, like high-interest savings accounts or money market funds, can help you manage short-term needs. This approach also gives you flexibility if opportunities to buy quality investments at a discount arise.

Before moving money around, it helps to start by taking stock of your finances with an inventory. Also, look at your current margin loan or mortgage situation. Knowing where you stand enables you to make thoughtful decisions without rushing to prepare for a recession. The goal is to keep your portfolio working for you, even when the economy shifts course.

Recession-Proof Your Investment Portfolio with Wealthica

Recession-proofing your investment portfolio starts with knowing exactly where you stand, and Wealthica gives you that clarity. It brings all your investment accounts together in one place so you can monitor your holdings, track performance, and spot shifts early. You can review your exposure across sectors, watch for dividend changes, and compare trends over time as you prepare for recession, all without logging into multiple platforms. As markets change, Wealthica helps you make timely adjustments, rebalance your portfolio, and stay aligned with your long-term goals. It’s a simple, powerful way to stay informed and in control.

Who Benefits From a Recession?

Specific sectors and individuals may benefit from the economic downturn during a recession. For example, companies in the discount retail, consumer staples, and healthcare sectors often see steady demand as consumers cut back on discretionary spending but still need essential goods and services. Additionally, investors with cash can take advantage of lower asset prices, buying stocks, real estate, or bonds at a discount. People with jobs in industries less impacted by economic cycles, such as utilities or government services, also tend to have more stability during tough times.

Will the Canadian Economy Recover in 2025?

Economic growth in Canada is expected to rise to around 1.8% in 2025 and 2026, which is a positive outlook following the challenges faced in previous years. This growth is anticipated to outpace the economy’s potential output as excess supply is gradually absorbed. Inflation is expected to remain close to the Bank of Canada’s 2% target, signaling a stable recovery. While challenges may be ahead, the overall trajectory points to a steady recovery, positioning Canada for a more balanced economic environment in the coming years.

What are the Most Volatile Canadian Stocks?

The most volatile Canadian stocks often have smaller market capitalizations or operate in high-risk sectors. Stocks like ARWY, with a volatility of 57.14% and a price of 0.035 CAD, and MMUZU, with a volatility of 53.85% at 0.065 CAD, demonstrate significant price fluctuations. FNQ, priced at 0.010 CAD and with a volatility of 50%, also shows high volatility. These stocks can present opportunities for high-risk, high-reward trading, but investors should be cautious of the potential for rapid price swings in either direction.