Start your ETF research with our list of the best ETFs to buy and hold, for young investors, for long term, growth ETFs, Income ETFs, and more. We have sections for each theme with real-time data for each of these ETFs to help you buy ETFs and grow your health.
Top-performing ETFs (January to March 2025)
As of May 2025, several Canadian ETFs have demonstrated strong performance since January. Notably, ETFs focused on precious metals and materials sectors have led the gains.
Here's a summary of the top-performing Canadian ETFs year-to-date:
- 1 iShares S&P/TSX Global Gold Index ETF (XGD): +36.26%
- 2 Global X Gold Producer Equity Covered Call ETF (GLCC): +35.28%
- 3 BMO Equal Weight Global Gold Index ETF (ZGD): +34.31%
- 4 Harvest Global Gold Giants Index ETF (HGGG): +31.10%
- 5 BMO Junior Gold Index ETF (ZJG): +29.34%
- 6 BMO MSCI China Selection Equity Index ETF (ZCH): +21.39%
- 7 iShares S&P/TSX Capped Materials Index ETF (XMA): +20.10%
Top-performing Canadian ETFs in April
Several Canadian ETFs have continued to perform well since April 1, particularly those focused on gold and cryptocurrency sectors.
- iShares S&P/TSX Global Gold Index ETF (XGD): +26.3% over the past 3 months
- Global X Gold Producer Equity Covered Call ETF (GLCC): +21.7% over the past 3 months
- iShares Gold Bullion ETF (CGL): +19% over the past 3 months
- Purpose Bitcoin Yield ETF (BTCY): +45.5% over the past 6 months
- Fidelity Advantage Bitcoin ETF (FBTC): +42.1% over the past 6 months
Best ETFs to buy now (click each section to open)
These ETFs combine stocks and bonds, making them great for hands-off investors.
| ETF | Management expense ratio (MER) | Why we like it |
|---|---|---|
| Vanguard Growth ETF (VGRO) | 0.24% | A balanced mix of global equities and fixed income. Ideal for long-term growth. |
| iShares Core Equity ETF (XEQT) | 0.20% | Similar to VGRO but slightly lower fees. It offers global exposure in one fund. |
| BMO Balanced ETF (ZBAL) | 0.20% | BMO's four allocation exchange-traded funds features global stocks and North American bonds at a low cost |
💡Management expense ratio (MER) are annual fees payable to the company that manages the ETF.
We display the MER as a percentage. If an ETF has an MER of 0.50%, you'll pay $5 each year for every $1,000 you have invested in the fund. Lower MERs mean more of your money stays invested and grows.
A mutual fund typically charges 2% or much more than an ETF.
Click the ticker symbol at the top of the graph to see each ETF.
The 100-per-cent focus on stocks means these funds will be hit hard in the next correction. Unless you consider yourself a trader, they’re best for people with at least five and preferably 10 years or more until they might need their money.
Rob Carrick, personal finance columnist, Globe & Mail
Read more: Best all-in-one ETFs in Canada
Perfect for income-focused investors who want to generate passive income.
| ETF | Fast facts | Why we like it |
|---|---|---|
| iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ) |
MER: 0.66%
Dividend yield: ~4% |
Invests in established Canadian companies with consistent dividend growth. |
| BMO Canadian Dividend ETF (ZDV) |
MER: 0.39%
Dividend yield: ~5% |
A reliable pick for high-yield Canadian dividends at a lower cost. |
| Invesco KBW Premium Yield Equity REIT ETF (KBWY) |
MER:
Dividend yield: ~7.5% |
Invests at least 90% if its assets in small- and mid-cap equity REITs with competitive dividend yields |
Click the ticker symbol at the top of the graph to see each ETF.
2 Canadian ETFs to buy and hold forever in your TFSA (talking about CDZ)
Tony Dong, MSc, CETF, The Motley Fool
These ETFs track major indexes with minimal fees.
| ETF | MER | Why we like it |
|---|---|---|
| Vanguard FTSE Canada All Cap Index ETF (VCN) | 0.06% | Provides exposure to Canadian stocks with rock-bottom fees. |
| iShares Core S&P 500 ETF (IVV) | 0.03% | Tracks the S&P 500 for strong U.S. market exposure at an ultra-low cost. |
| iShares Core MSCI Total International Stock ETF (IXUS) | 0.07% | IXUS covers large, medium and small companies across more than 40 countries for international diversification |
Click the ticker symbol at the top of the graph to see each ETF.
VCN is a go-to pick for several compelling reasons, earning its place as a top recommendation for those looking to invest in the Canadian market.
Tony Dong, MSc, CETF® at The Motley Fool Canada
Growing in popularity as investors focus on environmental, social, and governance factors.
| ETF | MER | Why we like it |
|---|---|---|
| iShares ESG Aware MSCI USA ETF (ESGU) | 0.15% | Exposure to U.S. companies that meet ESG criteria while maintaining solid returns. |
| BMO MSCI Canada ESG Leaders Index ETF (ESGA) | 0.17% | Focuses on Canadian companies leading in sustainability. |
| Vanguard ESG U.S. Stock ETF (ESGV) | 0.09% | Good for those interested in social impact and investing in U.S. companies like Apple, Microsoft, Google, Amazon and Tesla. |
Click the ticker symbol at the top of the graph to see each ETF.
ESGU’s POWR Ratings reflect its strong prospects. The fund has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
Aanchal Sugandh of stocknews.com
For investors who want exposure to specific sectors, themes and trends.
| ETF | MER | Why we like it |
|---|---|---|
| ARK Innovation ETF (ARKK) | 0.75% | Focuses on disruptive innovations like AI, biotech, and fintech. Higher risk but high reward potential. |
| iShares Global Clean Energy ETF (ICLN) | 0.42% | Provides access to clean energy companies worldwide, riding the renewable energy trend. |
| Xtrackers Artificial Intelligence and Big Data ETF (XAIX) | 0.35% | Low-cost, all-in ETF that selects companies for machine learning, image and speech recognition and NLP patents filed. |
Click the ticker symbol at the top of the graph to see each ETF.
Of the 119 ETFs in the A-rated Technology Equities ETFs group, ARKK is ranked #8.
Shreya Rathi of stocknews.com
For exposure to international markets.
| ETF | MER | Why we like it |
|---|---|---|
| Vanguard FTSE Developed All Cap ex North America Index ETF (VIU) | 0.23% | Diversifies your portfolio with developed markets outside Canada and the U.S. |
| iShares MSCI Emerging Markets ETF (IEMG) | 0.11% | Invests in high-growth emerging markets like India, China, and Brazil. |
| BMO MSCI EAFE Index (ZEA) | 0.20% | Investes in mid- and large-cap issuers in the European, Asian and Far East regions. |
Click the ticker symbol at the top of the graph to see each ETF.
[VIU] is nearly as tax-efficient as other comparable U.S.-based ETFs. And there is no perfect U.S.-based substitute for it.
Justin Bender of PWL Capital
Pro tip
Combine 2–3 ETFs to match your growth, income, and risk preferences. Diversifying across Canada, the U.S., and global markets gives your portfolio the best balance.
Buy your first ETF with one of Canada's top online brokerages
How to evaluate and choose the best ETFs
When evaluating the best Canadian ETFs, it's important to consider a range of factors to ensure that the ETF aligns with your investment goals, risk tolerance, and financial strategy.
Here are the top three aspects to consider:
Best Canadian ETFs 🇨🇦
Canadian ETFs are listed and traded on the Toronto Stock Exchange (TSX), which means you can buy them using Canadian dollars (CAD). When you purchase these ETFs through a Canadian brokerage account, the entire transaction happens in Canadian currency, so there’s no need to worry about converting your money into U.S. dollars or paying extra currency conversion fees.
Many Canadian ETFs hold shares of Canadian companies, so if those companies pay dividends, you’ll receive them in Canadian dollars. Those dividends often qualify for the Canadian dividend tax credit, which can reduce the amount of tax you owe on your investment income.
For new investors, this makes Canadian ETFs an easy, tax-efficient, and cost-effective way to start investing without dealing with exchange rates or foreign currency.
| ETF | MER | Why we like it |
|---|---|---|
| Vanguard FTSE Canada All Cap Index ETF (VCN) | 0.06% |
â—¦ Tracks the performance of the Canadian stock market, including large-, mid-, and small-cap companies.
â—¦ Provides broad exposure to the Canadian economy at an ultra-low cost. â—¦ A solid core holding for investors looking for long-term growth in Canadian equities. |
| iShares S&P/TSX 60 Index ETF (XIU) | 0.18% |
â—¦ Holds the 60 largest companies on the TSX, such as banks, energy companies, and telecoms.
â—¦ Offers exposure to Canada's blue-chip companies with strong dividends and stable growth. â—¦ Highly liquid and one of the oldest, most reliable ETFs in Canada. |
| BMO Canadian Dividend ETF (ZDV) | 0.39% |
â—¦ Focuses on Canadian companies that pay consistent dividends, providing steady income.
â—¦ Ideal for income-seeking investors looking for cash flow and stability. â—¦ Combines the safety of top Canadian stocks with a higher dividend yield. |
Click the ticker symbol at the top of the graph to see each ETF.
With these ETFs, you get a good balanced mix: VCN for overall Canadian market exposure, XIU for blue-chip stocks and stability and ZDV for reliable dividend income. An added bonus, XIU and VCN are also top Canadian index ETFs that track the TSX index. The Vanguard FTSE Canada All Cap Index ETF (VCN) tracks the FTSE Canada All Cap Domestic Index.
Related: Best commission-free trading platforms in Canada
These ETFs are perfect for investors who want to take advantage of Canada’s stable banking system, strong dividends, and consistent long-term growth.
| ETF | MER | Why we like it |
|---|---|---|
| BMO Equal Weight Banks Index ETF (ZEB) | 0.28% |
◦ Holds an equal-weighted portfolio of Canada’s "Big Six" banks (RBC, TD, BMO, Scotiabank, CIBC, and National Bank).
◦ Equal weighting means every bank gets the same share in the fund, reducing the risk of one bank dominating the portfolio. ◦ It provides solid exposure to the stability and dividends of Canada’s major banks, which have a strong track record of performance. |
| iShares S&P/TSX Capped Financials Index ETF (XFN) | 0.61% |
â—¦ Tracks the performance of Canadian financial companies, including the Big Six banks as well as insurance and other financial firms.
â—¦ Offers slightly broader exposure beyond just banks by including insurers like Manulife and Sun Life. â—¦ A solid pick for those who want diversified financial sector exposure while still benefiting from Canadian banks. |
| CI Canadian Banks Covered Call Income ETF (BKCC) | 0.71% |
â—¦ Invests in Canadian banks and uses a covered call strategy to generate additional income.
◦ Provides exposure to Canada’s top banks while enhancing income through option premiums. ◦ Ideal for income-focused investors looking for higher yields in addition to regular dividends. |
Click the ticker symbol at the top of the graph to see each ETF.
Over the past decade, several Canadian ETFs have delivered impressive returns. Here are three top performers:
| ETF | Fast facts | Why we like it |
|---|---|---|
| BMO Nasdaq 100 Equity Hedged to CAD Index ETF (ZQQ) |
10-year performance: Approximately 370% total return.
MER: 0.39% |
This ETF provides exposure to the 100 largest non-financial companies listed on the Nasdaq, with currency hedging to mitigate U.S. dollar fluctuations. |
| Vanguard S&P 500 Index ETF (VFV) |
10-year performance: Approximately 260% total return.
MER: 0.08% |
VFV seeks to track the performance of the S&P 500 Index, providing exposure to large-cap U.S. equities without currency hedging. |
| Vanguard US Total Market Index ETF (VUN) |
10-year performance: Approximately 247% total return.
MER: 0.16% |
VUN aims to replicate the performance of the CRSP US Total Market Index, covering nearly all of the U.S. equity market, including small-, mid-, and large-cap stocks. |
Click the ticker symbol at the top of the graph to see each ETF.
These ETFs have demonstrated strong performance over the past decade, offering Canadian investors diversified exposure to U.S. markets. It's important to note that past performance does not guarantee future results. Do your due diligence and consider your financial goals and risk tolerance before making investment decisions.
Investing in Canadian bond ETFs can provide stability and income to your portfolio. Here are some top options to consider:
| ETF | MER | Overview |
|---|---|---|
| iShares Core Canadian Universe Bond Index ETF (XBB) | 0.10% | XBB offers exposure to a broad range of Canadian bonds, including government and corporate issues, representing the overall Canadian bond market. |
| BMO Aggregate Bond Index ETF (ZAG) | 0.09% | ZAG seeks to replicate the performance of the FTSE Canada Universe Bond Index, providing exposure to a diversified portfolio of Canadian investment-grade bonds. |
| Vanguard Canadian Aggregate Bond Index ETF (VAB) | 0.09% | VAB aims to track the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index, offering exposure to a wide spectrum of public, investment-grade, fixed-income securities in Canada. |
Click the ticker symbol at the top of the graph to see each ETF.
When selecting a bond ETF, consider factors such as the types of bonds held (government vs. corporate), the fund's duration, credit quality, and your individual investment goals and risk tolerance.
Canadian investors seeking exposure to the NASDAQ-100 Index, which comprises the 100 largest non-financial companies listed on the NASDAQ stock market, have several ETF options available. Here are three notable Canadian-listed NASDAQ-100 ETFs:
| ETF | Fast facts | Why we like it |
|---|---|---|
| iShares NASDAQ 100 Index ETF (XQQ) |
MER: 0.39%
Currency hedging: Yes, hedged to Canadian dollars. |
XQQ aims to replicate the performance of the NASDAQ-100 Index while mitigating the impact of currency fluctuations between the U.S. dollar and the Canadian dollar. This ETF provides exposure to major tech companies like Apple, Microsoft, and Amazon. |
| BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ) |
MER: 0.39%
Currency hedging: Yes, hedged to Canadian dollars. |
ZQQ seeks to replicate the performance of the NASDAQ-100 Index by investing in its constituent companies and employs currency hedging to reduce exposure to U.S. dollar fluctuations. It offers investors a way to gain exposure to the U.S. tech sector with reduced currency risk. |
| Horizons NASDAQ-100 Index ETF (HXQ) |
MER: 0.28%
Currency hedging: No, unhedged. |
HXQ aims to replicate the performance of the NASDAQ-100 Index without employing currency hedging strategies, meaning returns are subject to U.S. dollar to Canadian dollar exchange rate movements. This ETF may be suitable for investors who prefer unhedged exposure to the U.S. tech sector. |
Click the ticker symbol at the top of the graph to see each ETF.
When choosing among these ETFs, consider factors such as management fees, currency hedging preferences, and your investment objectives. Currency-hedged ETFs like XQQ and ZQQ can help reduce the impact of currency fluctuations, while unhedged options like HXQ expose you to both the performance of the underlying securities and changes in exchange rates.
These ETFs provide a simple way to invest in the Nasdaq-100, giving Canadian investors access to some of the world's most innovative and growth-oriented companies.
Canadian investors seeking exposure to the S&P 500 Index, which represents 500 of the largest U.S. companies, have several ETF options available on the Toronto Stock Exchange (TSX). Here are some of the top Canadian-listed S&P 500 ETFs:
| ETF | Fast facts: | Overview |
|---|---|---|
| Vanguard S&P 500 Index ETF (VFV) |
MER: 0.09%
Currency hedging: No, unhedged |
VFV aims to replicate the performance of the S&P 500 Index by directly investing in U.S. large-cap stocks. As an unhedged ETF, its returns are subject to fluctuations between the U.S. and Canadian dollars. |
| BMO S&P 500 Index ETF (ZSP) |
MER: 0.09
Currency hedging: No, unhedged |
ZSP seeks to replicate the performance of the S&P 500 Index by holding the constituent securities in the same proportion as the index. It provides exposure to U.S. large-cap companies without currency hedging, making it suitable for investors comfortable with currency risk. |
| Vanguard S&P 500 Index ETF (VSP) |
MER: 0.09%
Currency hedging: Yes |
VSP is similar to VFV but includes currency hedging to mitigate the impact of exchange rate fluctuations between the U.S. and Canadian dollars. This makes it appealing for investors seeking to minimize currency risk. |
When selecting an S&P 500 ETF, consider factors such as management fees, currency hedging preferences, tax implications, and your individual investment goals. Unhedged ETFs like VFV and ZSP expose you to currency risk, which can impact returns based on exchange rate movements. Hedged options like VSP aim to neutralize this risk.
IF you're looking for capital appreciation without regular income, check out the Horizons S&P 500 Index ETF (HXS) because there are some tax efficiencies to be had.
What is currency hedging?
Imagine you’re investing in U.S. stocks, but you’re buying them with Canadian dollars (CAD). The value of the U.S. dollar (USD) compared to the Canadian dollar is constantly changing — this is called the exchange rate.
Here’s where it gets tricky:
If the U.S. dollar gets stronger, your U.S. investments are worth more when converted back into Canadian dollars. That's the good news.
If the U.S. dollar gets weaker, your U.S. investments are worth less in Canadian dollars. That’s not so great.
Currency hedging is like a safety net. It protects your investments from those ups and downs in the exchange rate. It locks in the value of the U.S. dollar relative to the Canadian dollar, so you’re not affected by currency fluctuations.
It’s like choosing between wearing a seatbelt when driving on a rollercoaster. The seatbelt (hedging) keeps you steady and secure, but if the rollercoaster (currency) goes up, you don’t get the thrill of soaring higher.
How to invest in ETFs
Now you have a list of the best Canadian ETFs, but how do you go about investing in them? That depends on whether you want to be a do-it-yourself investor or want to take a more hands-off approach to investing in ETFs. Either way, here’s a brief explanation of how to invest.
For DIY investors, open one of the best trading platforms in Canada.
The lowest cost options are Wealthsimple or Questrade where you can buy and sell stocks and ETFs for free. Read our comparison: Questrade vs Wealthsimple
Invest with Wealthsimple Invest with QuestradeOnce your discount brokerage account is set up, you’ll need to fund the account with a contribution from your bank. You can do this with a one-time lump sum or with regular automatic contributions.
From there you’ll want to select your ETF, or portfolio of ETFs, by entering the ticker symbol(s) and purchasing the appropriate number of units. Unless you hold an all-in-one balanced ETF, you’ll need to do your own portfolio rebalancing.
Decide on some rules. Let’s say your target allocation is 33% Canadian, 33% U.S., and 33% International. You can either rebalance whenever you add new money by contributing to the fund that is lagging behind. Or you can rebalance once or twice a year by selling some of the top-performing funds and buying more of the fund with the poorest returns. Buy low, sell high. That’s the name of the game.
Need more? Read how to invest in ETFs
ETFs offer plenty of benefits for self-directed investors and advisors alike. Besides the ability to trade ETFs just as easily as stocks and the diversification investors can get with just one or two ETFs, the biggest advantage is how cheap ETFs are compared to mutual funds. Yet, the amount of assets held in ETFs is still tiny compared to the amount of assets held in mutual funds. Indeed, the total amount invested in ETFs is around $278 billion, while there is more than $1.85 trillion invested in mutual funds.
Read more about ETF vs. mutual funds
For investors looking for some hand-holding through the process but who still want to save on fees, a robo-advisor is worth a look.
Robo-advisors, or digital advisors, allow investors to build a portfolio of low-cost ETFs and will automatically rebalance your portfolio as you add new money or whenever your portfolio drifts away from its target allocation. Most robo-advisors charge a management fee of around 0.40 – 0.50% to monitor your portfolio.
If you want to save that money, you'll have to go the DIY route. To simplify it, Wealthsimple, for example, publishes what asset classes and securities their portfolios represent. You can check out their list of what ETFs they buy in their robo-advisor portfolios, depending on risk tolerance, and buy the same ETFs that are in the Wealthsimple portfolio (many of them are in our list).
Our favourite robo advisors
Is now a good time to invest in ETFs?
Now you know what ETFs are and you’re ready to start investing. But wait—aren’t markets a little shaky right now?
It’s true. The last few years have been a ride: we’ve gone from pandemic panic to AI euphoria, with economic anxiety popping up at every turn. Most recently, U.S. tariffs on Chinese and even Canadian imports has stirred a new trade war. Mark Carney — yes, the former Bank of Canada and Bank of England governor — is back in the political spotlight as our new Prime Minister, so people are rightly to add to speculation around interest rates, inflation, and economic direction in Canada.
Political noise at home hasn’t quieted. And through it all, tech stocks like Nvidia keep breaking records, while gold and crypto are both having a moment.
It can feel overwhelming — but here’s the thing: it always does.
Markets are always uncertain. There’s always a reason to hesitate. But history shows us that staying invested — especially through the noise — is what builds wealth over time. Whether it was the 2008 crash, the COVID meltdown, or the tariff chaos under Trump, markets bounced back. And every single time, the people who stuck to their plan came out ahead.
I’ve seen it in my own portfolio. I kept investing during the 2020 crash, through inflation spikes, and yes, even during the recent interest rate rollercoaster. And over time, those contributions added up—especially when prices were low. That’s the benefit of staying in the game.
So, is now a good time to invest in ETFs? If you’ve got a long-term mindset and a well-diversified plan, then yes. Set up automatic contributions to your TFSA or RRSP. Keep it simple with all-in-one ETFs if you’re just starting out. And remember: investing isn’t about timing the headlines—it’s about staying steady through them.
Which ETF is right for you?
We've listed over 20 of the best ETFs for you to invest in. Having trouble deciding which one?
When it comes to ETFs, the specific one you choose matters less than simply getting started. Most ETFs offer instant diversification, low fees, and solid long-term growth potential. The key is to begin investing early, allowing your money to grow over time, rather than overthinking which ETF is "perfect." Time in the market beats timing the market every time.
The magic 8-ball offers a solid mix of Canadian-focused ETFs, U.S. market exposure, sector-specific ETFs, and fixed-income options, covering a range of investor needs, from income to growth to diversification.
Note: This is for fun. It's a cool widget, but not financial advice.
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