Best ETFs in Canada 2026
Low-cost, diversified exchange-traded funds for Canadian investors. Build a portfolio that matches your goals.
Why ETFs?
Exchange-traded funds (ETFs) are the easiest, cheapest way to build a diversified investment portfolio. Instead of picking individual stocks, you buy a single fund that holds hundreds or thousands of companies.
Benefits: Low fees (MER as low as 0.05%), instant diversification, easy to buy/sell, and tax-efficient. Perfect for DIY investors using Wealthsimple, Questrade, or your bank's brokerage.
Best All-in-One ETFs (Set It and Forget It)
Single-ticket portfolios with automatic rebalancing. Perfect for hands-off investors.
XGRO
iShares Core Growth ETF Portfolio
Allocation: 80% stocks / 20% bonds
MER: 0.20%
XBAL
iShares Core Balanced ETF Portfolio
Allocation: 60% stocks / 40% bonds
MER: 0.20%
VGRO
Vanguard Growth ETF Portfolio
Allocation: 80% stocks / 20% bonds
MER: 0.24%
VBAL
Vanguard Balanced ETF Portfolio
Allocation: 60% stocks / 40% bonds
MER: 0.24%
Best Canadian Index ETFs
Track the Canadian stock market with low fees.
VCN
Vanguard FTSE Canada All Cap Index ETF
Allocation: 100% Canadian stocks
MER: 0.05%
XIC
iShares Core S&P/TSX Capped Composite
Allocation: 100% Canadian stocks
MER: 0.06%
ZCN
BMO S&P/TSX Capped Composite Index ETF
Allocation: 100% Canadian stocks
MER: 0.06%
Best U.S. Index ETFs
Invest in the S&P 500 and U.S. market.
VFV
Vanguard S&P 500 Index ETF (CAD)
Allocation: 100% U.S. large-cap
MER: 0.09%
XUU
iShares Core S&P U.S. Total Market ETF
Allocation: 100% U.S. total market
MER: 0.07%
VUN
Vanguard U.S. Total Market Index ETF
Allocation: 100% U.S. total market
MER: 0.16%
Best International ETFs
Diversify globally outside North America.
XEF
iShares Core MSCI EAFE IMI Index ETF
Allocation: International developed markets
MER: 0.22%
VIU
Vanguard FTSE Developed All Cap ex North America
Allocation: International developed markets
MER: 0.23%
XEC
iShares Core MSCI Emerging Markets IMI
Allocation: Emerging markets
MER: 0.26%
Best Dividend ETFs
Generate income from dividend-paying stocks.
VDY
Vanguard FTSE Canadian High Dividend Yield
Allocation: Canadian dividend stocks
MER: 0.22%
XDV
iShares Canadian Select Dividend Index ETF
Allocation: Canadian dividend stocks
MER: 0.55%
CDZ
iShares S&P/TSX Canadian Dividend Aristocrats
Allocation: Canadian dividend growers
MER: 0.66%
How to Build a Simple ETF Portfolio
Option 1: All-in-One ETF (Easiest)
Buy a single fund like XGRO or VBAL. Done. It holds everything and rebalances automatically.
Best for: Beginners, hands-off investors, RRSP/TFSA accounts
Option 2: Canadian Couch Potato (3-Fund Portfolio)
Buy 3 ETFs: Canadian stocks (VCN), U.S. stocks (VFV), International stocks (XEF). Rebalance yearly.
Best for: DIY investors who want more control, lower MERs
Option 3: Custom Portfolio
Mix index ETFs, dividend ETFs, and bonds based on your goals and risk tolerance.
Best for: Experienced investors, specific income/growth goals
ETF Investing Tips
- ✓Keep it simple: Most investors are better off with 1-3 ETFs, not 10+.
- ✓Watch the MER: Management expense ratios eat into returns. Aim for under 0.25%.
- ✓Use your TFSA/RRSP: Hold ETFs in registered accounts to avoid capital gains tax.
- ✓Don't chase performance: Past returns don't predict future results. Stick to low-cost index funds.
- ✓Rebalance annually: If you build your own portfolio, rebalance once a year to maintain your target allocation.