Best ETFs Canada 2025 — Top 10 for Canadian Investors

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ETFs (Exchange-Traded Funds) are one of the most cost-effective ways for Canadians to invest. Here are the top ETFs available on Canadian exchanges for TFSA, RRSP, and non-registered accounts.

Disclaimer: This page is for educational purposes only. The ETFs listed are not specific investment recommendations. Investing involves risk, including possible loss of principal. Consult a licensed financial advisor before making investment decisions.

Why ETFs Are Popular Among Canadian Investors

Top 10 ETFs for Canadian Investors 2025

TickerNameTypeMERCurrency
XEQTiShares Core Equity ETF PortfolioAll-equity balanced0.20%CAD
XGROiShares Core Growth ETF Portfolio80/20 equity/bond0.20%CAD
XBALiShares Core Balanced ETF Portfolio60/40 equity/bond0.20%CAD
VEQTVanguard All-Equity ETF PortfolioAll-equity balanced0.24%CAD
VGROVanguard Growth ETF Portfolio80/20 equity/bond0.25%CAD
VBALVanguard Balanced ETF Portfolio60/40 equity/bond0.25%CAD
VFVVanguard S&P 500 Index ETFUS large-cap0.09%CAD
VCNVanguard FTSE Canada All Cap IndexCanadian equities0.05%CAD
XIUiShares S&P/TSX 60 Index ETFTop 60 TSX stocks0.18%CAD
ZAGBMO Aggregate Bond Index ETFCanadian bonds0.09%CAD

One-Fund ETF Portfolios — The Easiest Approach

The "one-fund" approach is popular among Canadian DIY investors. XEQT, VEQT, XGRO, and VGRO are diversified across Canadian, US, international, and emerging market equities in a single ETF. You buy one ETF and you're globally diversified.

This approach requires zero rebalancing and works perfectly in a TFSA or RRSP.

TFSA vs. RRSP: Which Account for ETFs?

Account2025 Contribution LimitTax AdvantageBest For
TFSA$7,000/year (cumulative room ~$95,000)Tax-free growth + withdrawalsAny income, flexible access
RRSP18% of prior year income (max $31,560)Tax deduction now; taxed on withdrawalHigh earners, retirement
FHSA$8,000/year (max $40,000 lifetime)Tax deduction + tax-free withdrawal for homeFirst-time home buyers
Strategy Note: Many Canadian investors fill their TFSA first (since withdrawals are fully tax-free), then contribute to their RRSP for the tax deduction. This is a commonly discussed strategy but your personal situation may differ — consult a financial advisor.

Where to Buy ETFs in Canada

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Frequently Asked Questions

What is the best ETF for a TFSA in Canada?

XEQT and VEQT are popular choices for a TFSA for long-term investors seeking global equity exposure in a single fund. For a more conservative approach, XGRO or VGRO (80% equity, 20% bonds) are widely used. This is not a personalized recommendation — your risk tolerance and timeline matter.

Are ETFs safe investments in Canada?

ETFs carry investment risk including the risk of losing money. However, broad-market index ETFs diversify across hundreds or thousands of securities, which reduces the risk of any single company failing. Market downturns can still cause significant losses.

How do I buy ETFs in Canada without paying commissions?

Wealthsimple Trade offers commission-free ETF trading in Canada. Questrade also offers free ETF purchases (but charges $4.95 per sell). Both are popular among Canadian self-directed investors.

What does MER mean for ETFs?

MER stands for Management Expense Ratio — the annual fee charged by the ETF provider, expressed as a percentage of assets. A 0.20% MER means you pay $20 per year on a $100 investment. Lower MER means more of your investment return stays with you.

Can I hold US ETFs like VOO or VTI in my Canadian RRSP?

Yes. US-listed ETFs like VOO (Vanguard S&P 500) can be held in a Canadian RRSP and are exempt from the 15% US withholding tax on dividends within an RRSP. In a TFSA, US-listed ETFs are NOT exempt from withholding tax, making Canadian-listed equivalents like VFV preferable.