Best ETFs in Canada 2026

Best All-in-One ETFs in Canada 2026

All-in-one ETFs (also called asset allocation ETFs) hold a globally diversified mix of stocks and bonds in a single fund. They rebalance automatically and are ideal for passive investors who want simplicity.

ETF	Ticker	MER	Asset Mix	Best For
Vanguard All-Equity Most Popular	VEQT	0.24%	100% stocks	Long-term growth (20+ yr)
Vanguard Growth	VGRO	0.25%	80% stocks / 20% bonds	Growth with some stability
Vanguard Balanced	VBAL	0.25%	60% stocks / 40% bonds	Balanced risk/return
iShares All-Equity	XEQT	0.20%	100% stocks	Lowest-cost all-equity
iShares Growth	XGRO	0.20%	80% stocks / 20% bonds	Low-cost growth
BMO All-Equity	ZEQT	0.20%	100% stocks	BMO ecosystem users

Recommendation for most Canadians: XEQT or VEQT for those with 15+ year time horizons. VGRO or XGRO for those 5–15 years from retirement. Hold inside a TFSA for maximum tax efficiency.

Best Canadian Equity ETFs

ETF	Ticker	MER	Focus	Yield
iShares Core S&P/TSX Composite	XIC	0.06%	Broad Canadian market	~2.8%
Vanguard FTSE Canada All Cap	VCN	0.05%	All Canadian stocks	~2.8%
BMO S&P/TSX Capped Composite	ZCN	0.06%	TSX broad market	~2.9%
iShares S&P/TSX 60	XIU	0.18%	Top 60 Canadian companies	~3.0%
Hamilton Enhanced Canadian Bank	HCAL	0.65%	Levered bank ETF	~7.5%

Best US and Global ETFs for Canadians

ETF	Ticker	MER	Index	Currency
Vanguard US Total Market	VUN	0.16%	CRSP US Total Market	CAD (hedged to CAD)
iShares Core S&P 500	XSP	0.10%	S&P 500 (CAD hedged)	CAD
iShares S&P 500 (USD)	IVV	0.03%	S&P 500	USD
BMO MSCI EAFE	ZEA	0.22%	Europe/Asia/Far East	CAD
Vanguard FTSE Developed All Cap	VIU	0.22%	Global ex-N. America	CAD
Vanguard FTSE Emerging	VEE	0.24%	Emerging markets	CAD

Best Canadian Dividend ETFs

ETF	Ticker	MER	Yield	Distribution Frequency
iShares Canadian Dividend	XDV	0.22%	~4.2%	Monthly
Vanguard Canadian High Dividend Yield	VDY	0.22%	~4.5%	Monthly
BMO Canadian Dividend	ZDV	0.39%	~4.0%	Monthly
CI WisdomTree Quality Dividend Growth	DGRC	0.23%	~2.5%	Quarterly

Dividend ETFs are popular with retirees and income-focused investors. Note that high yield doesn't always mean better total returns — reinvesting in a low-MER all-in-one ETF often outperforms dividend-focused strategies over 20+ years.

How to Invest in ETFs in Canada

Open a TFSA or RRSP at a discount broker — Wealthsimple Trade, Questrade, or your bank. Holding ETFs inside registered accounts shelters gains from tax.
Choose your ETF(s) — For most investors, one all-in-one ETF (XEQT or VEQT) is sufficient. No need to build a complex portfolio.
Invest regularly — Set up automatic monthly contributions. Dollar-cost averaging removes the stress of market timing.
Leave it alone — All-in-one ETFs rebalance automatically. Resist the urge to check daily or sell during downturns.

Use our investment calculator to project how regular ETF contributions grow over time.

Frequently Asked Questions

What is the best ETF for a Canadian beginner?

XEQT or VEQT are ideal for beginners. Both are single-fund, globally diversified, automatically rebalanced, and have very low MERs (0.20–0.24%). Buy one, invest regularly, and don't overthink it.

Should I hold ETFs in a TFSA or RRSP?

Canadian ETFs are generally better in a TFSA for most investors. US-listed ETFs (like VTI or IVV) are often better in an RRSP to avoid the US withholding tax on dividends. Consult a tax professional for your specific situation.

Can I buy ETFs for free in Canada?

Yes. Wealthsimple Trade offers commission-free ETF purchases with no trading fees. Questrade allows you to buy ETFs free of charge (sells incur a commission). Both are excellent platforms for ETF investors.

What does MER mean and why does it matter?

MER (Management Expense Ratio) is the annual fee charged by an ETF, expressed as a percentage of assets. A 0.20% MER on $100 costs $20/year. Over 30 years, an ETF with 0.20% MER vs. 1.00% MER means keeping tens of thousands of extra dollars due to compound savings.

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