ETFs (exchange-traded funds) offer a simple and affordable way to invest in the stock market. But if you want to find the best ETF in Canada, where do you start?
To help you decide where to invest, we’ve compiled a list of some of the best ETFs in Canada. Whether you want broad exposure, low volatility or high dividend income, keep reading to compare some of the best ETFs to buy now in Canada.
What are the best ETFs to buy now in Canada? Well, how long is a piece of string?
The trouble with this question is that it’s subjective. The best ETF for you will depend on factors like why you’re investing, whether you’re investing for the short- or long-term, and how much risk you’re willing to accept. In other words, the best ETF for you might not be the same as the best ETF for someone else.
That said, we’ve compiled a selection of some of the best Canadian ETFs based on factors like performance, sector diversification, risk level, volatility and size. Check them out in more detail below.
| ETF Name | Ticker | Exchange(s) | Risk Level | Sector(s) | Get started |
|---|---|---|---|---|---|
| iShares S&P/TSX 60 Index ETF | XIU.TO | Toronto Stock Exchange | Medium | Large-cap Canadian equities | Buy now |
| BMO S&P/TSX Capped Composite Index ETF | ZCN.TO | Toronto Stock Exchange | Medium | Broad Canadian equities | Buy now |
| Vanguard FTSE Canada All Cap Index ETF | VCN.TO | Toronto Stock Exchange | Medium | Broad Canadian equities | Buy now |
| BMO Low Volatility Canadian Equity ETF | ZLB.TO | Toronto Stock Exchange | Low–Medium | Canadian equities, low-volatility | Buy now |
| iShares Core S&P/TSX Capped Composite Index ETF | XIC.TO | Toronto Stock Exchange | Medium | Broad Canadian equities | Buy now |
| iShares MSCI Canada Minimum Volatility ETF | XMV.TO | Toronto Stock Exchange | Low–Medium | Canadian equities, minimum volatility | Buy now |
| Vanguard FTSE Canada Index ETF | VCE.TO | Toronto Stock Exchange | Medium | Broad Canadian equities | Buy now |
| BMO Canadian Dividend ETF | ZDV.TO | Toronto Stock Exchange | Medium | Canadian equities, dividend-focused | Buy now |
| Global X Enhanced Equal Weight Canadian Banks Covered Call ETF | BKCL.TO | Toronto Stock Exchange | Medium–Higher | Canadian banks, income/covered-call | Buy now |
| Hamilton Enhanced Canadian Bank ETF | HCAL.TO | Toronto Stock Exchange | Medium–Higher | Canadian banks, income-focused | Buy now |
XIU aims to deliver long-term capital growth by tracking the performance of the S&P/TSX 60 Index. Launched in 1990, it provides exposure to some of the largest companies in Canada. It also has competitive fees and has delivered double-digit returns over the past decade.
Top 5 holding allocations:
| Management expense ratio: | 0.18% |
| Number of holdings: | 61 |
| 1-year performance: | 26.71% |
| 3-year performance: | 18.36% |
| 5-year performance: | 17.35% |
| 10-year performance: | 11.70% |
| Distribution frequency: | Quarterly |
| Distribution yield: | 2.60% |
ZCN aims to replicate the performance of the S&P/TSX Capped Composite Index. This index features over 200 Canadian stocks and covers around 95% of the Canadian equities market. Index weights are capped at 10% and this ETF has over $13.2 billion in net assets as of November 2025.
Top 5 holding allocations:
| Management expense ratio: | 0.06% |
| Number of holdings: | 213 |
| 1-year performance: | 28.64% |
| 3-year performance: | 19.43% |
| 5-year performance: | 17.58% |
| 10-year performance: | 11.68% |
| Distribution frequency: | Quarterly |
| Distribution yield: | 2.28% |
This Vanguard ETF aims to replicate the performance of the FTSE Canada All Cap Domestic Index. The fund is passively managed and provides exposure to a wide range of large-, mid- and small-cap stocks. It’s worth a look if you want to invest in a diversified portfolio of Canadian stocks for a low MER of 0.06%.
Top 5 holding allocations:
| Management expense ratio: | 0.06% |
| Number of holdings: | 209 |
| 1-year performance: | 28.66% |
| 3-year performance: | 19.73% |
| 5-year performance: | 17.95% |
| 10-year performance: | 11.62% |
| Distribution frequency: | Quarterly |
| Distribution yield: | 2.32% |
Launched in 2011, ZLB is designed for investors seeking a low-to-medium-risk ETF. ZLB invests in large-cap Canadian stocks with low volatility compared to the rest of the market, with banks, consumer staples, and essential services like utilities featuring heavily. If you value steady returns over more high-risk, high-reward strategies, this ETF is well worth a look.
Top 5 holding allocations:
| Management expense ratio: | 0.39% |
| Number of holdings: | 54 |
| 1-year performance: | 18.95% |
| 3-year performance: | 15.81% |
| 5-year performance: | 14.86% |
| 10-year performance: | 10.56% |
| Distribution frequency: | Quarterly |
| Distribution yield: | 1.93% |
XIC aims to deliver long-term capital growth by replicating the performance of the S&P/TSX Capped Composite Index. It provides exposure to the entire Canadian stock market, ensuring easy access to a diversified portfolio. And with a low MER of 0.06%, it’s one of the best ETFs to buy now in Canada.
Top 5 holding allocations:
| Management expense ratio: | 0.06% |
| Number of holdings: | 214 |
| 1-year performance: | 28.68% |
| 3-year performance: | 19.43% |
| 5-year performance: | 17.58% |
| 10-year performance: | 11.68% |
| Distribution frequency: | Quarterly |
| Distribution yield: | 2.25% |
XMV aims to replicate the performance of the MSCI Canada Minimum Volatility Index (CAD). It invests in stocks with lower levels of volatility in an effort to limit losses during market downturns and also take advantage of rising markets. And while it’s designed to minimize volatility, this fund has still delivered a 10%+ return over the past 10 years.
Top 5 holding allocations:
| Management expense ratio: | 0.34% |
| Number of holdings: | 72 |
| 1-year performance: | 17.29% |
| 3-year performance: | 16.72% |
| 5-year performance: | 16.05% |
| 10-year performance: | 10.26% |
| Distribution frequency: | Quarterly |
| Distribution yield: | 2.44% |
This passively managed fund aims to track the performance of the FTSE Canada Domestic Index. To do this, it invests in a broad range of large- and mid-cap stocks. Its holdings include many of the largest companies in the country, while a competitive MER of 0.06% helps ensure that it’s one of the best ETFs in Canada.
Top 5 holding allocations:
| Management expense ratio: | 0.06% |
| Number of holdings: | 79 |
| 1-year performance: | 26.89% |
| 3-year performance: | 18.99% |
| 5-year performance: | 18.14% |
| 10-year performance: | 11.91% |
| Distribution frequency: | Quarterly |
| Distribution yield: | 2.53% |
If you’re looking for an ETF that can help you maximize your dividend income, the BMO Canadian Dividend ETF could be a good fit for your portfolio. ZDV invests in a broad selection of Canadian dividend-paying stocks across 11 market sectors. Securities are chosen based on their three year dividend growth rate, yield, payout ratio and liquidity, and the fund has over $1.3 billion in net assets as of November 2025.
Top 5 holding allocations:
| Management expense ratio: | 0.39% |
| Number of holdings: | 62 |
| 1-year performance: | 21.63% |
| 3-year performance: | 15% |
| 5-year performance: | 16.91% |
| 10-year performance: | 9.97% |
| Distribution frequency: | Monthly |
| Distribution yield: | 3.11% |
BKCL provides exposure to the performance of the Solactive Equal Weight Canada Banks Index. It invests in the Big Six Canadian banks to provide long-term capital growth as well as a consistent monthly income. This ETF uses 125% leverage and a covered call strategy to deliver the potential for higher growth and distribution yield to investors. Check it out if you’re searching for an ETF that can deliver a higher monthly income.
Top holding allocations:
| Management expense ratio: | 1.68% |
| 1-year performance: | 29.26% |
| 3-year performance: | N/A |
| 5-year performance: | N/A |
| 10-year performance: | N/A |
| Distribution frequency: | Monthly |
| Distribution yield: | 13.23% |
HCAL aims to deliver 1.25 times the returns of the Solactive Equal Weight Canada Banks Index. It uses 25% cash leverage to invest in the Big Six Canadian banks, aiming to deliver a higher monthly income to investors. This means a higher level of risk, but also the potential for higher rewards.
Holding allocations:
| Management expense ratio: | 0.65% |
| Number of holdings: | 6 |
| 1-year performance: | 42.8% (including dividends) |
| 3-year performance: | 23.6% (including dividends) |
| 5-year performance: | 21.5% (including dividends) |
| 10-year performance: | N/A |
| Distribution frequency: | Monthly |
| Distribution yield: | 4.48% |
* ETF performance data in this section gathered in November and December 2025.
Dive deeper: Beginner's guide to investing in ETFs in Canada
Looking to diversify your portfolio by investing in ETFs from the US and around the globe? Check out the table below for some popular options.
| ETF Name | Ticker | Exchange(s) | Risk Level | Sector(s) | Buy now on CIBC Investor's Edge |
|---|---|---|---|---|---|
| iShares MSCI All Country World Minimum Volatility ETF | ACWV | Cboe BZX (USA) | Low–Medium | Global equities | Buy now |
| Vanguard Total Stock Market ETF | VTI | NYSE Arca (USA) | Medium | Broad U.S. equities, total market | Buy now |
| iShares MSCI USA Min Vol Factor ETF | USMV | Cboe BZX (USA) | Low–Medium | U.S. equities | Buy now |
| iShares MSCI ACWI ETF | ACWI | NYSE Arca (USA) / Global | Medium | Global equities, large & mid cap | Buy now |
| Invesco S&P 500 Low Volatility ETF | SPLV | NYSE Arca (USA) | Low–Medium | S&P 500 equities | Buy now |
Based on factors like returns, distribution yield and management fees, some of the best S&P 500 ETFs in Canada are the Vanguard S&P 500 Index ETF (VFV) and the CAD-hedged version (VSP) of the same fund.
Designed to track the USA’s S&P 500 Index, these ETFs provide exposure to some of the largest companies in the world. Both funds have a low MER of 0.09%, and VFV has delivered a 10-year return of 14.74% while VSP has provided a return of 12.97% over the same period.
The difference between the two is that VSP uses derivative instruments to hedge your exposure to the Canadian dollar, protecting you against currency fluctuations.
If you want to gain exposure to the tech-heavy Nasdaq 100, two of the best Nasdaq ETFs in Canada are the iShares NASDAQ 100 Index ETF (CAD‑Hedged) (XQQ) and the Invesco NASDAQ 100 Index ETF (QQC).
XQQ has delivered a 1-year return of 28.29%, a 5-year return of 17.57% and a 10-year return of 17.98%. It has $4.2 billion in net assets as of November 2025, pays semi-annual distributions and has a distribution yield of 0.23%. XQQ’s management expense ratio is 0.39%.
Invesco’s QQC has delivered a 1-year return of 31.26%, a 3-year return of 33.08%, and 19.93% since its inception in 2021. This fund has $1.34 billion in net assets as of November 2025, plus a competitive MER of 0.21%.
Looking for the steady returns and low fees of a bond ETF? The BMO Aggregate Bond Index ETF (ZAG) and the Vanguard Canadian Short-Term Bond Index ETF (VSB) are two of the best bond ETFs in Canada.
BMO’s ZAG aims to mimic the performance of the FTSE Canada Universe Bond Index by investing in long-term debt securities. It has delivered a 3-year return of 4.33% and a 10-year return of 2.02%, and it boasts a competitive management expense ratio of 0.09%.
Vanguard’s VSB aims to track the Bloomberg Global Aggregate Canadian Government/Credit 1–5 year Float Adjusted Bond Index by investing in Canadian fixed income securities. It boasts a 3-year return of 4.76%, a 10-year return of 2.00%, and a management expense ratio of 0.12%.
Take the following factors into account when deciding on the best ETFs to buy now in Canada:
Most brokers offer a wide range of research and analysis tools to help you choose investments, so be sure to make the most of them. Some of these tools are better suited to experienced traders, but there are plenty of useful resources for beginners too.
One of the most important tools you can use is your broker’s ETF screener. Screeners let you filter ETFs based on the features you’re looking for in an investment—just put in your search parameters and away you go.
For example, you could filter ETFs based on their asset classes, whether they’re passively or actively managed, their risk level, specific investment themes, analyst ratings and much more. There are free online screening tools available too, so start comparing ETFs today.
There are two fees to be aware of when investing in ETFs: the management expense ratio (MER) and brokerage fees.
The MER is the annual fee you’ll pay to the fund issuer for managing your fund. It includes the management fee, the fund’s operating expenses and taxes. The MER is expressed as a percentage of the fund’s net assets, so if you invest $10,000 in an ETF with a 0.10% MER, you’ll pay $10 in fees per year.
Whether or not you need to pay brokerage fees when investing in Canadian ETFs depends on the trading platform you choose. Some brokers offer commission-free ETF trades, but others will charge a commission every time you buy or sell units in an ETF. This could be a flat fee per trade or calculated based on the size of your transaction
There are two main costs you may need to be aware of if you buy US ETFs from Canada: brokerage fees and currency conversion costs.
Some brokers offer commission-free trading of US-listed ETFs. But if your broker doesn’t offer $0 commission trading, you’ll need to pay a brokerage fee every time you place a buy or sell trade.
If you’re trading on US exchanges, you’ll also need US dollars to buy US ETFs. So if you deposit CAD, your broker might charge a currency conversion fee when it converts your money to USD. However, some brokers allow you to hold USD in your trading account to avoid currency conversion costs.
When you’ve done all your research and you’re ready to invest in an ETF, here’s what you need to do.
Compare online trading platforms to find a broker that offers all the features you need. Look for a platform that offers low-fee or commission-free stock trading, is easy to use, and provides access to the Canadian and international markets you want to trade.
You can compare features of online brokerages below to find the right platform for you to take the first step to investing in the best ETFs.
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score, the better the platform—it's that simple.
Search for the name or the ticker symbol of the ETF you want to invest in. You can review the current price of the ETF and then click on “buy”.
While many brokers support advanced order types, you have two main options when buying units of an ETF: a market order or a limit order. A market order will buy the ETF immediately at the best price available at the time, while a limit order allows you to specify the maximum price you are willing to pay.
You’ll then need to transfer money over from your bank account so you can start trading. Specify the number of ETF units you want to buy or the amount you want to invest. Make sure you take a moment to review that all transaction details are correct before placing your order.
Like an ETF, a mutual fund is a professionally managed investment fund that can hold a collection of stocks and bonds. There are actively managed funds that try to outperform the market, and passively managed index funds. Mutual funds tend to have slightly higher management fees than ETFs, while there are also differences in terms of how they’re traded and minimum investment requirements. Learn more in our ETFs vs mutual funds guide.
This approach lets you build your own portfolio of stocks based on your investment goals, time horizon and risk tolerance. It gives you complete control over where you invest your money, but it also requires more time and effort. And unless your broker offers $0 commission trading, the brokerage fees will add up.
With thousands of ETFs to choose from across Canadian and global exchanges, finding the best ETFs to buy now requires more than a little research. The ETFs featured here are a good starting point as you search for the right investments, but the best ETFs for you depend on your financial goals and your appetite for risk. Research and compare funds based on your needs before deciding where to invest.
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