City danger men Robbie Mak and Alex Nimely claimed two goals each in a one-way second half after Toronto had created their best chances before the break only to find goalkeeper Joe Clegg in outstanding form.
The Boy Blues will now face either Sao Paulo or Eintracht Frankfurt in the last four after topping supergroup A with 11 goals and maximum points following earlier victories over AC Milan by 4-0 and Mexican side Tigres 3-2.
Keiran Trippier, tipped by many as a future first-team star, was not for the first time the best player on the pitch, but it was the eager strike partnership of Mak and Nimely that left the Toronto defence in tatters.
Slovak-born Mak set the ball rolling with an outstanding solo goal, beating the right-back before drawing the keeper and slotting his shot low into the bottom corner. Then he made the second for Nimely after leaving the Canadian centre-backs in his wake.
Mak made the pair look out of their depth once more before curling City’s third beyond the hapless keeper, then in the dying minutes Nimely rounded off a satisfying victory with a routine fourth goal.