With hundreds of ETFs trading on Canadian exchanges, choosing the right index fund can be paralyzing. This guide cuts through the noise and highlights the best options for 2026, organized by category and investor type. All picks prioritize low costs, broad diversification, and strong liquidity.
Best All-in-One ETFs (Easiest Option)
All-in-one ETFs are portfolios inside a single fund. You buy one ticker and own a globally diversified mix of stocks and bonds. They automatically rebalance. No decisions required after purchase.
XEQT — iShares Core Equity ETF Portfolio
Holds four underlying iShares ETFs covering Canadian, US, international, and emerging market equities. Over 9,000 individual securities. No bonds — ideal for investors with 20+ year horizons who can tolerate volatility. Our top pick for young investors.
XGRO — iShares Core Growth ETF Portfolio
80% globally diversified equities, 20% Canadian bonds. The single most popular all-in-one ETF for Canadian investors. Appropriate for most people in their 30s–50s who want growth with some stability. Automatically rebalances quarterly.
VGRO — Vanguard Growth ETF Portfolio
Vanguard's answer to XGRO. Slightly higher MER, similar allocation. Holds Vanguard's underlying ETFs. Some investors prefer the Vanguard brand for its founder-owned, investor-focused governance model. Both XGRO and VGRO are excellent choices.
XBAL — iShares Core Balanced ETF Portfolio
60/40 portfolio — the classic balanced allocation. Less volatile than XGRO. Good for investors within 5–10 years of retirement or those with lower risk tolerance. Historically the decline in a major market crash is about 20–25% vs 35–40% for equity-heavy funds.
Best Canadian Equity ETFs
VCN — Vanguard FTSE Canada All Cap Index ETF
The best low-cost Canadian equity ETF. Covers large, mid, and small-cap Canadian companies. MER of just 0.05% is among the lowest available. Ideal for the Canadian equity portion of a three-fund portfolio.
Best US Equity ETFs
XUU — iShares Core S&P US Total Mkt Idx ETF
Holds US total market exposure in Canadian dollars. No currency conversion needed at purchase. Covers ~3,500 US companies. Best US equity ETF for TFSA holders.
Best International Equity ETFs
XAW — iShares Core MSCI All Country World ex Canada
Everything except Canada — US, Europe, Asia, and emerging markets. Pairs perfectly with VCN for a two-fund global equity portfolio. The most diversified single-country-exclusion ETF available to Canadians.
Best Bond ETF
VAB — Vanguard Canadian Aggregate Bond Index ETF
The go-to Canadian bond ETF. Holds federal, provincial, and corporate bonds. Provides stability and income. When stocks decline, bonds often hold value or appreciate, reducing portfolio volatility.
Quick Comparison
| ETF | Allocation | MER | Best Account |
|---|---|---|---|
| XEQT | 100% equity | 0.20% | TFSA (young investors) |
| XGRO | 80/20 | 0.20% | TFSA / RRSP |
| VGRO | 80/20 | 0.24% | TFSA / RRSP |
| XBAL | 60/40 | 0.20% | Conservative / near-retirement |
| VCN | Canada equities | 0.05% | Taxable (DTC benefit) |
| XUU | US equities | 0.07% | TFSA / RRSP |
| VAB | Bonds | 0.09% | RRSP / TFSA |
Ready to Start Investing?
Build your emergency fund with KOHO first, then put your savings to work in index ETFs.