Updated March 2025 · 10 min read

Best ETFs for Canadians 2025: Complete Guide

No fee everyday banking

Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.

See how it works

What is an ETF? An Exchange-Traded Fund trades like a stock on a stock exchange but holds a basket of securities — stocks, bonds, or other assets. ETFs combine the diversification of mutual funds with the low cost and tradability of stocks.

ETFs have transformed how Canadians invest. With management expense ratios (MERs) as low as 0.05%, they dramatically outpace the 2%+ fees charged by most Canadian mutual funds. This guide covers the best ETFs across every category for Canadian investors in 2025.

ETF Basics: What Every Canadian Investor Needs to Know

MER (Management Expense Ratio): Annual fee charged by the fund, expressed as a percentage of assets. Lower is better.
Bid-Ask Spread: The difference between buy and sell price. Larger, more liquid ETFs have tighter spreads.
Distribution yield: Annual income paid out (dividends, interest), expressed as a % of price.
Assets Under Management (AUM): Larger AUM generally means better liquidity and lower spreads.
CAD-hedged vs unhedged: Hedged ETFs remove currency risk; unhedged lets you benefit from USD strength.

Best All-in-One ETFs (Simplest Option)

ETF	Provider	Equity/Bond	MER	Best For
XEQT	iShares	100/0	0.20%	Long-term growth, 20+ yr horizon
VEQT	Vanguard	100/0	0.24%	Long-term growth, 20+ yr horizon
XGRO	iShares	80/20	0.20%	Growth with mild cushion
VGRO	Vanguard	80/20	0.24%	Growth with mild cushion
XBAL	iShares	60/40	0.20%	Balanced, 5–15 yr horizon
VBAL	Vanguard	60/40	0.24%	Balanced, 5–15 yr horizon

Best Canadian Equity ETFs

ETF	Index	MER	Yield
VCN	FTSE Canada All Cap	0.05%	~3.0%
XIC	S&P/TSX Capped Composite	0.06%	~3.0%
ZCN	S&P/TSX Capped Composite	0.06%	~3.0%
XIU	S&P/TSX 60	0.18%	~2.8%

Best U.S. Equity ETFs for Canadians

ETF	Index	MER	Notes
VFV	S&P 500	0.09%	Best for RRSP (no withholding tax)
XUS	S&P 500	0.10%	iShares equivalent to VFV
ZSP	S&P 500	0.09%	BMO option
VUN	U.S. Total Market	0.16%	Broader than S&P 500
QQC	NASDAQ-100	0.20%	Tech-heavy growth

Best International ETFs

ETF	Coverage	MER
XEF	Developed markets ex-NA	0.22%
VIU	Developed markets ex-NA	0.23%
XEC	Emerging markets	0.27%
VEE	Emerging markets	0.24%

Best Bond ETFs

ETF	Type	MER	Yield
ZAG	Canadian aggregate bonds	0.09%	~3.5%
VAB	Canadian aggregate bonds	0.09%	~3.5%
XBB	Canadian aggregate bonds	0.10%	~3.5%
ZST	Short-term bonds	0.15%	~4.0%
VSB	Short-term bonds	0.11%	~4.0%

Best Dividend ETFs for Canadians

ETF	Focus	MER	Yield
VDY	Canadian high-dividend stocks	0.21%	~4.5%
XDV	Canadian dividend index	0.22%	~4.3%
ZDV	Canadian dividend index	0.39%	~4.4%
CDZ	Canadian dividend aristocrats	0.66%	~3.8%

How to Buy ETFs in Canada

You need a brokerage account to buy ETFs. Best options for Canadians:

Wealthsimple Trade: Commission-free, beginner-friendly, TFSA/RRSP available
Questrade: Free ETF purchases, $4.95–$9.95 for sells, more advanced tools
National Bank Direct Brokerage: Commission-free ETF trading

ETF vs Mutual Fund Fees: A $100,000 portfolio paying 2% in mutual fund fees costs $2,000/year. The same portfolio in an ETF with 0.20% MER costs $200/year. Over 25 years at 7% growth, the fee difference compounds to over $200,000 in lost wealth.

Free Up More Money to Invest — Zero-Fee Banking

Stop paying $200-$360/year in bank fees. KOHO's no-fee account frees up money you can redirect into your TFSA or RRSP. Use code BREMO2026 for a sign-up bonus.

Get KOHO Free — Use Code BREMO2026