ETFs (Exchange-Traded Funds) are the simplest and cheapest way to build a diversified investment portfolio. Here are the best Canadian ETFs across key categories for 2026. If you want the broader overview first, start with our ETFs and index funds hub.
Best all-in-one ETFs
All-in-one ETFs hold a globally diversified portfolio of stocks (and sometimes bonds) in a single fund. Buy one ETF and you are done. Our dedicated guide to best all-in-one ETFs in Canada goes deeper on the tradeoffs.
| ETF | Allocation | MER | Holdings | Best For |
|---|---|---|---|---|
| XEQT | 100% equity | 0.20% | 9,000+ stocks | Long-term growth (10+ year horizon) |
| VEQT | 100% equity | 0.24% | 13,000+ stocks | Long-term growth (Vanguard preference) |
| XGRO | 80% equity / 20% bonds | 0.20% | 9,000+ stocks + bonds | Growth with some stability |
| VGRO | 80% equity / 20% bonds | 0.24% | 13,000+ stocks + bonds | Growth with some stability |
| XBAL | 60% equity / 40% bonds | 0.20% | 9,000+ stocks + bonds | Balanced / moderate risk |
| VBAL | 60% equity / 40% bonds | 0.24% | 13,000+ stocks + bonds | Balanced / moderate risk |
| XCNS | 40% equity / 60% bonds | 0.20% | Stocks + bonds | Conservative / near retirement |
| VCNS | 40% equity / 60% bonds | 0.24% | Stocks + bonds | Conservative / near retirement |
How to choose your all-in-one ETF
- 10+ years to invest: XEQT or VEQT (100% equity for maximum growth)
- 5–10 years: XGRO or VGRO (some bonds to smooth out volatility)
- 3–5 years: XBAL or VBAL (balanced approach)
- Less than 3 years: Consider a GIC or HISA instead
Best Canadian dividend ETFs
| ETF | Focus | MER | Yield | Holdings |
|---|---|---|---|---|
| XDV | Canadian dividend large-cap | 0.55% | ~4.0% | 30 stocks |
| VDY | Canadian high dividend | 0.22% | ~4.2% | 60+ stocks |
| CDZ | Canadian Dividend Aristocrats | 0.66% | ~3.8% | 80+ stocks |
| PDC | Canadian Dividend Premium | 0.67% | ~5.0% | 25+ stocks |
Dividend ETFs are popular for retirees and income-focused investors. However, for investors in their accumulation phase, total-return ETFs like XEQT typically outperform dividend-focused strategies over the long term.
Best bond ETFs
| ETF | Focus | MER | Yield | Duration |
|---|---|---|---|---|
| ZAG | Canadian Aggregate Bond | 0.09% | ~3.5% | Medium |
| XBB | Canadian Broad Bond | 0.10% | ~3.5% | Medium |
| ZST | Short-term corporate bonds | 0.11% | ~4.0% | Short |
| ZSDB | Short duration high yield | 0.40% | ~5.5% | Short |
Bond ETFs reduce portfolio volatility and provide steady income. If you are using an all-in-one ETF, bonds are already included — you do not need to add more. If you are unsure how much fixed income you need, see our guide to asset allocation by age.
Best US and international ETFs
| ETF | Focus | MER | Holdings |
|---|---|---|---|
| XUU | Total US market (CAD) | 0.07% | 3,500+ US stocks |
| VUN | Total US market (CAD) | 0.17% | 4,000+ US stocks |
| XEF | International developed (CAD) | 0.22% | 2,800+ stocks |
| XEC | Emerging markets (CAD) | 0.25% | 800+ stocks |
These are useful if you want to build a custom portfolio with specific regional allocations. For most investors, an all-in-one ETF already includes these regions.
How to buy ETFs in Canada
If you need the full beginner walkthrough, see how to buy ETFs in Canada.
- Open a brokerage account (e.g., Wealthsimple, Questrade, or your bank’s brokerage)
- Fund the account with a deposit
- Search for the ETF by ticker symbol
- Place a buy order
Most online brokerages charge $0 commission on Canadian-listed ETF purchases. See our guide to getting started for a step-by-step walkthrough.
What about MER fees?
The MER (Management Expense Ratio) is the annual fee deducted from the fund. It is not charged to you directly — it is built into the fund’s returns. Use our MER calculator to see how fees impact your long-term returns.
| MER | Annual Cost on $100,000 |
|---|---|
| 0.07% (XUU) | $70 |
| 0.20% (XEQT) | $200 |
| 0.24% (VEQT) | $240 |
| 2.00% (typical mutual fund) | $2,000 |
The difference between a 0.20% ETF and a 2.00% mutual fund is $1,800 per year on $100,000 — or $54,000+ over 20 years.
Frequently asked questions
Which ETF is best for a TFSA? For long-term growth, XEQT or VEQT. Both offer global equity exposure at low MER. XEQT costs 0.20%; VEQT costs 0.24%. Either is an excellent choice — pick one and hold it consistently.
What is the best ETF for a beginner in Canada? XEQT or VEQT for a long time horizon (10+ years). XGRO or VGRO (80% equity/20% bonds) if you want slightly lower volatility. Both are one-fund solutions — buy one ETF and you are globally diversified.
Are Canadian ETFs safe? ETFs are as safe as the underlying assets they hold. A broad-market ETF holding 9,000+ stocks is highly diversified — no single company failure can significantly harm the fund. The main risk is market risk (broad declines), which is expected and managed through time in the market. ETFs are regulated by provincial securities commissions and CIRO.
How do I buy ETFs in Canada? Open an account at a Canadian brokerage (Wealthsimple, Questrade, TD Direct, etc.), deposit funds, search for the ETF ticker (e.g., XEQT), and place a buy order. Commission-free ETF purchases are available at Wealthsimple and (for buys) at Questrade.
Should I buy Canadian or US-listed ETFs? For most Canadians in a TFSA, Canadian-listed ETFs are simpler — no currency conversion, no US tax forms. For large RRSP balances, US-listed ETFs (VOO, VTI) eliminate the embedded US withholding tax. See best account type for US stocks for the full breakdown.