Do you want to invest in a US ETF to diversify your Canadian portfolio? Whether you’re looking for the best US dividend ETF you can buy in Canada, the best Nasdaq ETF or the best US ETFs based on performance, these are the funds you should watch.
Four best US ETFs:
Best US ETF by 1-year performance: GraniteShares 2x Long COIN Daily ETF (CONL)
Best US ETF by 5-year performance: Grayscale Bitcoin Trust (GBTC)
Best US dividend ETF: KraneShares China Internet and Covered Call Strategy ETF (KLIP)
Best Nasdaq ETF: GraniteShares 2x Long COIN Daily ETF (CONL)
Best US ETF: 1-year performance
GraniteShares 2x Long COIN Daily ETF (CONL)
The GraniteShares 2x Long COIN Daily ETF has yielded an staggering 620.78% return over the past 12 months. The fund aims for results that are double the daily percentage change of Coinbase Global common stock (Nasdaq: COIN). Its total assets are worth around $350 million, and the expense ratio is 1.15%. Unlike buying cryptocurrency directly, CONL provides indirect exposure to crypto in the form of a professionally managed fund.
The Grayscale Bitcoin Trust ETF—the largest Bitcoin ETF in the world—has yielded a impressive 63.95% return over the past 5 years. The high-risk fund invests exclusively in Bitcoin, providing a convenient way for everyday investors to indirectly invest in Bitcoin without the hassle of direct ownership. Launched in 2013 to private investors, GBTC became publicly available in January 2024. The fund holds more than $24.6 billion in total assets, and it has a 1.50% expense ratio (reduced from 2.00% in January).
KraneShares China Internet and Covered Call Strategy ETF (KLIP)
The KraneShares China Internet and Covered Call Strategy ETF has yielded a strong 62.53% return over the past 12 months. The fund provides exposure to China-based companies in the internet sector, investing in shares of the KraneShares CSI China Internet ETF (NYSEArca: KWEB) and then selling call options on KWEB. The benchmark index for both KLIP and KWEB is the CSI Overseas China Internet Index. KLIP holds around $157 million in total assets and has a 0.95% expense ratio.
These are the 5 best US dividend ETFs you can buy from Canada based on annual dividend yield. We excluded ETFs with negative or nonexistent 1-year returns, so only ETFs with positive 1-year returns are shown.
Symbol
ETF name
Yield
Expense ratio
Total assets
KLIP
KraneShares China Internet and Covered Call Strategy ETF
62.53%
0.95%
157M
OARK
YieldMax Innovation Option Income Strategy ETF
38.69%
1.19%
71M
RATE
Global X Interest Rate Hedge ETF
32.33%
0.47%
2M
FBL
GraniteShares 2x Long META Daily ETF
27.67%
1.15%
78M
RYSE
Vest 10 Year Interest Rate Hedge ETF
23.21%
0.85%
5M
Best Nasdaq ETF
GraniteShares 2x Long COIN Daily ETF (CONL)
Not just our top pick for the best US ETF based on 1Y performance, the GraniteShares 2x Long COIN Daily ETF is also our pick for the best Nasdaq ETF. The cryptocurrency-focused fund holds around $350 million in total assets and yielded a 620.78% return over the past year. It aims for results that are double the daily percentage change of Coinbase Global common stock (Nasdaq: COIN). When you buy shares of CONL, you don’t hold crypto directly, but you get indirect exposure to crypto with the convenience of a professionally managed fund.
Our selection of top picks is based on the same criteria as our annual Stock Trading Platform Awards. This is updated yearly to reflect changes in the market.
"Best for" picks are those we've evaluated to be best for specific product features or categories – you can read our full methodology here. If we show a "Promoted" pick, it's been chosen from among our commercial partners and is based on factors that include special features or offers, and the commission we receive.
This isn't an exhaustive list of all the trading platforms out there. What's best for you depends on your own investing strategy, budget and financial goals.
How to invest in a US ETF
Once you’ve considered the risks of investing in the best US ETFs and worked out your financial goals, you can buy and sell ETF units like any stock on the stock market through a fund manager or an online trading platform.
Here’s how to buy US ETFs through an online trading platform:
There are thousands of US ETFs to choose from, so you’ll need to consider a wide range of factors when deciding where to invest your money.
Your investment time frame. How long are you planning to invest your money? Some US ETFs adopt a high-risk strategy to target high short-term growth, while others are designed for long-term growth to suit investors who plan to buy and hold for a long time.
Your investment strategy. What do you want to achieve by investing in a US ETF? Will you take a conservative approach in the hope of earning steady long-term gains, or will you adopt a high-risk/high-reward strategy to target quick gains? If you prefer lower risk, you could also consider index funds.
How the fund works. Make sure you understand the nature of the product and the risks involved before you invest in an ETF. Read the fund’s prospectus. Is it passively or actively managed? What is the focus index, sector or industry?
Check the returns. How has it performed over a one-year period? How has it performed over several years? How have similar ETFs performed over the same period?
Fees. Find out the management fee and any trading fees your broker charges.
Talk to a financial adviser. If you’re unclear about an investment, how it works or its returns, contact a licensed professional for help.
US ETF fees to consider
High fees can make a big dent in your overall investment returns. Like Canadian ETFs, there are two main costs involved when investing in US funds: management and brokerage fees.
Management expense ratio (MER). Often between 0.05% and 2.5%, this is the percentage of your return that your fund manager charges as a fee. Typically, the more work a fund manager has to do to keep the ETF profitable, the higher the fee. Index ETFs simply follow stocks listed in an index, so management fees are usually low.
Brokerage fees. Like Canadian stocks and ETFs, your broker may charge a fee every time you buy shares of a US ETF. The fee usually ranges from $0 up to $10+ per trade, although some platforms charge percentage fees.
Other possible fees you might encounter include account inactivity fees, quarterly or annual account maintenance fees (sometimes waived with a minimum balance) and money transfer charges.
What are the risks of investing in US ETFs?
As with all investments, buying US ETFs comes with risks:
You could lose money. The value of US ETFs rise and fall like any listed stock.
Non-diversified ETFs are especially vulnerable to industry swings. Funds with varied investments won’t be as heavily impacted if one investment dips. But funds that focus on a single asset class may fall significantly if that industry or sector goes down.
Tracking errors might obscure ETF data. Fees, taxes and other factors can sometimes mean that an ETF doesn’t accurately track the performance of an index.
Leveraged and inverse ETFs are higher risk. Leveraged ETFs are designed to provide higher short-term returns than traditional ETFs, but the risk and fees are higher. Inverse ETFs allow you to hedge against falling markets but come with unique risks and can be confusing for novice investors.
Currency risks and international taxes. If you invest in a global ETF, changes in the value of the US dollar will have a direct impact on the value of your investment. You may also need to pay foreign taxes, so make sure you’re aware of all tax implications of an ETF before committing any funds.
Synthetic ETFs. By investing in derivatives and swaps instead of stocks, synthetic ETFs are riskier than traditional ETFs. The price of futures could differ from the price of an underlying asset.
Where can I view US ETF fund facts?
Basic details about a fund can be found in its prospectus, which (in most cases) must be filed with the US Securities and Exchange Commission (SEC) before an ETF can be publicly traded.
The prospectus breaks down key information about a fund including:
Fees and costs
Investment objectives
Risk level
Performance
View all public filings related to ETFs and other regulated US securities on the SEC website. You can also access an ETF’s prospectus by visiting the issuing company’s website.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
A failed SPAC deal pulled the plug on this vertical farming company’s plans to go public. But you can buy stock in other sustainable farming companies.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
