4 Best US ETFs for 2026

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: Breakwave Tanker Shipping ETF (BWET)
• Best US ETF by 5-year performance: ProShares Ultra Semiconductors (USD)
• Best US dividend ETF: GraniteShares YieldBOOST HOOD ETF (HOYY)
• Best Nasdaq ETF: Direxion Daily MU Bull 2X ETF (MUU)

Best US ETF: 1-year performance

5 best US ETFs by 1Y performance

Best US ETF: 5-year performance

5 best US ETFs by 5Y performance

Best US dividend ETF

5 best US dividend ETFs

These are the five best US dividend ETFs you can buy from Canada based on annual dividend yield. We excluded ETFs with negative or nonexistent one-year returns, so only ETFs with positive one-year returns are shown.

Best Nasdaq ETF

5 best Nasdaq ETFs

These are the five best Nasdaq ETFs you can buy from Canada based on one-year performance. Learn more about investing in Nasdaq stocks.

Our top picks for online investment platforms

Best Welcome Bonus

Qtrade Direct Investing

$80 Reward

Go to site

T&Cs apply

• $0 commissions
• Supports advanced order types
• Advanced technical charting
• Highly-rated customer support

Best for $0 Commission Trades

Questrade

Go to site

• $0 commissions
• Dual currency USD/CAD accounts
• Advanced order types
• Sophisticated charting and trading tools

Best for Beginners

CIBC Investor's Edge

Go to site

• Easy-to-use platform
• Low fees compared to other Big Bank platforms
• Wide range of research tools and order types
• Discounts for young investors and active traders

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:

1. Sign up with a trading platform that suits your investment needs.
2. Sign up by providing personal details, proof of citizenship and proof of ID.
3. Log in to your trading account.
4. Deposit money into your trading account through a bank transfer.
5. Search for the ETF on your platform, and place a buy order.

A beginner’s guide to ETFs

How to choose the best US ETF

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.
How to buy US stocks in Canada

FAQs about the US ETFs

• Can Canadians buy US ETFs?

  Yes, investors in Canada can buy US ETFs through Canada-based brokerages that offer access to US securities, although currency conversion costs may apply. Alternatively, Canadians can invest in Canadian ETFs that hold US securities.

• Do I need US dollars to buy US ETFs?

  ETFs listed on US exchanges like the NYSE or Nasdaq trade in US dollars, so your investment platform will need to convert your Canadian dollars before you can purchase any shares. Some platforms like Scotia iTrade offer USD accounts that let you invest in US securities without needing to convert your CAD first.

• Do Canadians have to pay US withholding tax on earnings from US ETFs?

  Yes, if Canadian investors receive dividend income from US ETFs, a 15% withholding tax may be charged by the US Internal Revenue Service (IRS). However, the types of accounts in which US ETFs are held and other factors can affect the tax rules that apply, so check with a tax professional to understand your obligations.

More investment guides

Stock Trading

Guide to buying SpaceX stock in Canada

Learn how to buy SpaceX stock in Canada and see stock performance history over time.

Stock Trading

Ethereum treasury companies

We break down which companies hold Ethereum, why they’re doing it and what ETH treasuries mean for markets and investors.

Stock Trading

How to invest in the EURO STOXX 50

Want to invest in the Euro Stoxx 50 in Canada? Explore investment platforms and popular Euro Stoxx 50 index funds.

Written by

Tim Falk

Writer

Add to Preferred Sources

Tim Falk is a freelance writer for Finder. Over the course of his 20-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. See full bio

Tim's expertise

Tim has written 597 Finder guides across topics including:

• Banking
• Personal Loans
• Car Loans
• Stock Trading
• Cryptocurrency

Co-written by

Stacie Hurst

Editor

Stacie Hurst is an editor at Finder, specializing in loans, banking, investing and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she has completed FP Canada Institute's Financial Management Course. Before working in the publishing industry, Stacie completed one year of law school in the United States. When not working, she can usually be found watching K-dramas or playing games with her friends and family. See full bio

Stacie's expertise

Stacie has written 233 Finder guides across topics including:

• Banking
• Stock Trading
• Cryptocurrency
• Personal Loans
• Car Loans
• Credit Cards