A method for fabricating a magnetoresistive device having at least one active region, which may be formed into a magnetic memory bit, sensor element and/or other device, is provided. In forming the magnetoresistive device, a magnetoresistive stack, such as a giant magnetoresistive stack, is formed over a substrate. In addition, a substantially antireflective cap layer formed from titanium nitride, aluminum nitride, and/or other substantially antireflective material, as opposed to the materials commonly used to form a cap layer, is formed over the magnetoresistive stack. The substantially antireflective cap layer is usable as an etch stop for later processing in forming the magnetic memory bit, sensor element and/or other device.