Best ETFs in Canada ● TSX · Updated April 2026
Top 10 Best ETFs in Canada
for High Returns (2026 Guide)
A complete data-driven guide to the best ETFs in Canada — with performance bars, MER fees, investor figures, return data, and expert insights on every top TSX-listed fund.
Why Invest in the Best ETFs in Canada in 2026?
The best ETFs in Canada offer one of the most powerful, low-cost ways for Canadians to build wealth. Unlike individual stocks, ETFs give you instant diversification across hundreds or thousands of companies in a single trade. The S&P/TSX Composite delivered ~32% in 2025, and broad-market Canadian ETFs captured most of that gain at fees as low as 0.04% MER.
Whether you’re a first-time TFSA investor or an experienced trader, this guide breaks down the top 10 best ETFs in Canada — with real performance data, MER fees, investor counts, return summaries, and key risks for 2026.
📌 Jump to any ETF
01
XEQT — iShares Core Equity ETF Portfolio
02
VEQT — Vanguard All-Equity ETF Portfolio
03
VFV — Vanguard S&P 500 Index ETF
04
XIU — iShares S&P/TSX 60 Index ETF
05
VCN — Vanguard FTSE Canada All Cap ETF
06
ZEB — BMO Equal Weight Banks ETF
07
XEI — iShares S&P/TSX High Dividend ETF
08
ZWC — BMO Canadian High Dividend Covered Call
09
ZJG — BMO Junior Gold Index ETF
10
XIC — iShares Core S&P/TSX Capped Composite
iShares Core Equity ETF Portfolio
TSX: XEQT
🌍 Global Equity · All-in-One
XEQT (iShares Core Equity ETF Portfolio) is the #1 best-performing large Canadian ETF of 2025, returning +20.45% according to Morningstar Canada. It’s managed by BlackRock and holds over 9,500 global stocks through four underlying iShares ETFs covering Canada, the US, developed markets, and emerging markets. With an AUM of ~$12.7 billion CAD, it is one of the most trusted all-in-one ETFs for long-term investors.
In November 2025, BlackRock cut XEQT’s MER from 0.18% to 0.17%, matching Vanguard’s VEQT. It’s 100% equity — no bonds — making it ideal for younger investors with a long time horizon. Top holdings include Apple, Microsoft, Amazon, Royal Bank, and TD Bank. Morningstar’s 3-year annualized return: +20.68%.
+20.45%
+20.68%
0.17% (Excellent)
Excellent
Medium (100% Equity)
Global Equity
TFSA / RRSP
Beginner Friendly
100% equity — can drop sharply in bear markets. Heavy US exposure (~45%) means susceptibility to USD/CAD currency fluctuations. Short-term volatility expected. Not suitable for investors needing income.
📊 Morningstar ETF Performance Data →
📈 New to investing? Top 10 Best Canadian Stocks for Beginners →
Vanguard All-Equity ETF Portfolio
TSX: VEQT
🌍 Global Equity · All-in-One
VEQT (Vanguard All-Equity ETF Portfolio) is XEQT’s closest rival and arguably the most recommended all-in-one ETF for young Canadian investors. Managing approximately $10 billion CAD, it holds four underlying Vanguard ETFs — VCN (Canada), VUN (US), VIU (developed markets), and VEE (emerging markets). It returned +20.45% in 2025, identical to XEQT.
The key difference: VEQT gives Canada a ~30% weighting (vs XEQT’s ~25%), which reduces currency risk and boosts local market exposure. Vanguard cut the fee to 0.17% MER in November 2025. Financial advisors across Canada consistently name it the #1 recommendation for beginner investors who want a single, set-and-forget ETF.
+20.45%
~30%
0.17% (Excellent)
Maximum
Medium (100% Equity)
Global Diversification
#1 Beginner Pick
TFSA / RRSP
100% equity — no bonds for cushioning during downturns. 30% Canada bias means significant TSX concentration risk. No dividend income stream — total return only. Currency swings affect non-CAD holdings.
📊 2025 All-Equity ETF Returns Analysis →
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Vanguard S&P 500 Index ETF
TSX: VFV
🇺🇸 US Equity · S&P 500
VFV (Vanguard S&P 500 Index ETF) is the most popular way for Canadians to invest in the US market without leaving the TSX. It tracks the S&P 500 index — 500 of the world’s largest US companies including Apple, Microsoft, Amazon, Nvidia, and Alphabet — all in Canadian dollars at a rock-bottom MER of just 0.09%.
The S&P 500 has historically delivered around 10% annual returns over 30+ years. VFV makes this accessible from any Canadian brokerage, making it the #1 recommended US equity ETF for Canadians on platforms like Wealthsimple and Questrade. Note: in an RRSP, holding VOO (US-listed) avoids the 15% dividend withholding tax.
~10%/yr (30-yr)
0.09% (Excellent)
100% (Full)
Medium-High
US Equity
Ultra-Low Fee
TFSA Favourite
100% US concentration — no international or Canadian diversification. CAD/USD currency risk can add or subtract returns. Tech-heavy (Apple, Nvidia, Microsoft = ~25% of index). Not suitable as a standalone Canadian portfolio.
📊 Full ETF Analysis 2026 — GrowSimple →
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iShares S&P/TSX 60 Index ETF
TSX: XIU
🍁 Canadian Equity · Blue Chip
XIU (iShares S&P/TSX 60 Index ETF) is Canada’s largest ETF by AUM (~$21.4B), launched in 1999. It tracks the 60 largest companies on the TSX, including all the Big Six banks, energy majors (Suncor, CNQ), railways (CNR, CP), telecoms (BCE, Telus), and utilities. Its 1-year return of +28.29% beat the category average of 26.09%.
XIU stands out for its ~3% dividend yield — the highest among the major Canadian broad-market ETFs — making it a dual income-and-growth play. 3-year annualized return: +19.18%; 5-year: +15.35%. Motley Fool and Morningstar consistently rate it as a core Canadian portfolio holding.
+28.29%
+19.18%
~3%
Low-Medium
Dividend + Growth
25-Yr Track Record
TFSA Core Hold
Only 60 holdings — less diversified than XIC or VCN. Heavily concentrated in financials (~40%) and energy (~20%). No international exposure. Higher MER (0.17%) than some rivals. Concentration in Canadian economy only.
📊 Morningstar Best Canadian ETFs 2026 →
📈 Top 10 Best Canadian Stocks for Beginners (2026) →
Vanguard FTSE Canada All Cap ETF
TSX: VCN
🍁 Canadian All-Cap · Broad Market
VCN (Vanguard FTSE Canada All Cap ETF) was voted #1 best Canadian equity ETF by the MoneySense expert panel for 2026. With an ultra-low 0.06% MER, it tracks the FTSE Canada All Cap Index — broader than XIU or XIC because it includes small-cap stocks that those indices exclude. This makes it the most complete slice of the Canadian market available.
VCN is a core component of both VEQT and VGRO, used as the Canadian equity sleeve in Vanguard’s all-in-one lineup. It’s ideal as a standalone Canadian equity position when combined with VFV (US) and VIU (international) for a complete DIY portfolio.
0.06% (Top Tier)
Full (All Cap)
Strong
Low-Medium
#1 MoneySense Pick
Ultra-Low Fee
Canada-only — heavy financials and energy concentration (~60% combined). No international diversification. Small-cap Canadian stocks add exposure to less liquid, higher-risk companies.
📰 MoneySense Best ETFs Canada 2026 →
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BMO Equal Weight Banks Index ETF
TSX: ZEB
🏦 Canadian Banks · Sector ETF
ZEB (BMO Equal Weight Banks Index ETF) is the most popular way to invest in all six major Canadian banks at equal weight — RBC, TD, BNS, BMO, CIBC, and National Bank. By weighting each bank equally rather than by market cap, ZEB avoids heavy concentration in RBC and TD alone, and gives smaller banks more influence on returns.
Canadian banks are globally recognized for their stability, strong regulation, and consistent dividends. ZEB has risen sharply in 2025–2026 on the back of the Canadian banking sector’s strong performance. It offers a ~2.9% dividend yield with quarterly distributions — ideal for income-focused investors who want bank exposure without stock-picking.
Strong (Banks up)
~2.9%
High
Low-Medium
Dividend Income
Sector ETF
100% concentrated in 6 Canadian banks — no diversification outside the sector. Housing market downturns could hit all 6 holdings simultaneously. Interest rate sensitivity. No international or tech exposure.
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iShares S&P/TSX Composite High Dividend ETF
TSX: XEI
💰 High Dividend · Income Focus
XEI (iShares S&P/TSX Composite High Dividend Index ETF) is one of the best ETFs in Canada for passive income, consistently yielding ~4% annually with monthly distributions. It invests in the highest-yielding companies on the TSX Composite — primarily banks, pipelines, utilities, and telecom companies that generate stable cash flows.
Motley Fool named XEI a top choice for passive income in 2026. Unlike covered call ETFs, XEI doesn’t cap upside — you get dividend growth over time in addition to the near-4% yield. A strong core holding for RRIF investors, retirees, or anyone wanting monthly cash flow.
~4%
Consistent
Very High
Low
Monthly Income
RRIF Favourite
Canada-only, sector-concentrated (financials, energy, telecoms). Yield is strong but lower than covered call ETFs. Limited growth potential compared to broad-market ETFs. No international exposure.
📰 Motley Fool — Best High-Yield ETFs 2026 →
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BMO Canadian High Dividend Covered Call ETF
TSX: ZWC
📈 Covered Call · High Income
ZWC (BMO Canadian High Dividend Covered Call ETF) is one of the best ETFs in Canada for high monthly income, yielding over 6%. It holds a portfolio of Canada’s highest-dividend stocks while also using a covered call options strategy to generate additional premium income. This combination significantly boosts the yield compared to pure dividend ETFs like XEI.
Motley Fool Canada named ZWC a top pick for passive income investors in 2026. The trade-off: the covered call strategy caps some upside if stocks rally sharply. In sideways or moderate growth markets, the higher yield more than compensates. Best for income-focused investors, retirees, or RRIF drawdown phases.
~6%+
High
Capped
Low-Medium
High Monthly Income
Retiree Friendly
Covered calls cap upside — in strong bull markets you miss gains. Canada-only sector concentration. The higher yield comes from options premiums, which are not guaranteed to persist. More complex strategy than simple index ETFs.
📰 Motley Fool — Best High-Yield ETFs 2026 →
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BMO Junior Gold Index ETF
TSX: ZJG
🥇 Gold Mining · Top Performer 2026
ZJG (BMO Junior Gold Index ETF) was the #1 best-performing Canadian ETF in February 2026 according to Morningstar Canada, and has gained over 221% in the past year. It tracks junior gold mining companies — smaller explorers and producers that have much higher leverage to gold price moves than established majors like Agnico Eagle.
With gold prices soaring above $3,300 USD/oz in 2026, junior miners have generated massive returns. However, ZJG is a high-risk, high-reward play — junior miners can fall just as sharply when gold prices correct. Best suited as a small tactical allocation for investors who believe the gold bull market continues.
221%+
Very High
$3,300+ USD/oz
Very High
Very High Risk
Inflation Hedge
Extremely volatile — junior miners can lose 50%+ quickly when gold falls. Not suitable as a core holding. Past 1-year performance was exceptional but not sustainable. Only appropriate as a small tactical position.
📊 Morningstar Best Performing ETFs 2026 →
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iShares Core S&P/TSX Capped Composite ETF
TSX: XIC
🍁 Canadian Broad Market · Core Hold
XIC (iShares Core S&P/TSX Capped Composite ETF) is one of Canada’s most widely held ETFs with ~$25.2 billion in AUM, launched in 2001. It tracks the S&P/TSX Capped Composite Index — approximately 240+ of the largest companies on the TSX — providing broad Canadian equity exposure at an ultra-low 0.06% MER.
XIC delivered a +32.94% return over the past year, outperforming the average fund in its category (+26.09%). It has climbed +20.74% annualized over 3 years and +15.77% over 5 years. Morningstar rates it with a Silver or Gold Medalist rating. Used as the Canadian sleeve inside XEQT.
+32.94%
+20.74%
0.06% (Top Tier)
Low-Medium
Broad Market
Ultra-Low Fee
25-Yr Track Record
Canada-only exposure — heavy in financials and energy (~60%). No international or US diversification. Slightly narrower coverage than VCN (excludes smallest-cap stocks). Canadian economy risk.
📊 Morningstar Best Canadian ETFs 2026 →
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📊 Full Comparison Table — All 10 ETFs
← Swipe left to right on mobile. Data as of April 2026. All figures approximate.
| ETF Name | Ticker | Type | MER | Return | Dividend | AUM | Risk | Best For |
|---|---|---|---|---|---|---|---|---|
| iShares All-Equity (XEQT) | XEQT | All-in-One Global | 0.17% | +20.45% (2025) | None | ~$12.7B | MED | Long-term Growth |
| Vanguard All-Equity (VEQT) | VEQT | All-in-One Global | 0.17% | +20.45% (2025) | None | ~$10B | MED | Beginners |
| Vanguard S&P 500 (VFV) | VFV | US Equity | 0.09% | ~10%/yr (30-yr) | Small | Large | MED-HIGH | US Exposure |
| iShares TSX 60 (XIU) | XIU | Canadian Blue Chip | 0.17% | +28.29% | ~3% | ~$21.4B | LOW-MED | Income + Growth |
| Vanguard Canada All Cap (VCN) | VCN | Canadian All-Cap | 0.06% | Strong | Small | Large | LOW-MED | Canadian Core |
| BMO Equal Banks (ZEB) | ZEB | Sector (Banks) | 0.28% | Strong 2025 | ~2.9% | Large | LOW-MED | Bank Dividend |
| iShares High Div (XEI) | XEI | Dividend Income | 0.22% | Steady | ~4% | Mid | LOW | Monthly Income |
| BMO Covered Call (ZWC) | ZWC | Covered Call | 0.72% | Capped | ~6%+ | Mid | LOW-MED | High Income |
| BMO Junior Gold (ZJG) | ZJG | Gold Sector | 0.61% | +221%+ (1-yr) | None | Small | V.HIGH | Gold Tactical |
| iShares TSX Comp (XIC) | XIC | Canadian Broad | 0.06% | +32.94% | Small | ~$25.2B | LOW-MED | Canadian Core |
❓ FAQ — Best ETFs in Canada
What are the best ETFs in Canada for 2026?
The best ETFs in Canada in 2026 include XEQT and VEQT (all-in-one global), VFV (S&P 500), XIU (Canadian blue chip), VCN (Canadian all-cap), and XEI (high dividend). The right choice depends on your investment goals, time horizon, and income needs.
What is the best single ETF for a Canadian beginner?
Most financial advisors recommend VEQT or XEQT — you buy one ETF, own over 9,000+ stocks globally, pay only 0.17% MER, and automatic rebalancing is handled for you. Both returned +20.45% in 2025. Simply buy and hold in your TFSA monthly.
Which Canadian ETF pays the highest dividend?
For the best ETFs in Canada by dividend yield, ZWC (BMO Covered Call) leads at ~6%+ monthly, followed by XEI (iShares High Dividend) at ~4%, and ZEB (BMO Banks) at ~2.9%. The higher the yield, the more trade-offs to understand (like capped upside with ZWC).
What is the cheapest ETF in Canada by MER?
The cheapest broad-market ETFs are VCN, XIC, and ZCN at 0.06% MER. For US exposure, VFV at 0.09% is excellent. The all-in-ones VEQT and XEQT both charge 0.17% — very competitive given they own 4 ETFs inside them and auto-rebalance.
Can I buy ETFs in a TFSA or RRSP?
Yes — all of the best ETFs in Canada listed here are eligible for TFSA, RRSP, RESP, and non-registered accounts. Holding Canadian-listed ETFs like VFV in a TFSA means US dividends face a 15% withholding tax. In an RRSP, US-listed ETFs like VOO avoid this tax entirely.
How many ETFs do I need in my portfolio?
Most Canadians do well with 1 to 5 ETFs. One all-in-one like XEQT or VEQT covers the entire world. A DIY approach might use 3: VCN (Canada) + VFV (US) + VIU (international). More than 10 ETFs usually adds overlap without better diversification.
⚠️ Important Legal Disclaimer
This article is for informational and educational purposes only. Rank10.ca does not recommend, endorse, or advise the purchase or sale of any specific ETF or investment product on your behalf. Nothing here constitutes financial, investment, tax, or legal advice.
All performance data, MER figures, AUM, and investor estimates are approximate and sourced from publicly available third-party sources including Morningstar Canada, MoneySense, Motley Fool Canada, Vanguard Canada, BlackRock iShares, and Canadian Portfolio Manager Blog. We do not guarantee accuracy or completeness.
Investing in ETFs involves risk, including possible loss of principal. Past performance does not guarantee future results. Always consult a registered financial advisor before making investment decisions.
