Exchange-traded funds (ETFs) have moved from a niche choice for cost-conscious investors a decade ago to a mainstream investment vehicle today. While many Canadians still prefer mutual funds for retail investing, ETFs now account for more than one-quarter of all investment fund assets and captured the bulk of new inflows—a net $122 billion in 2025, a 62% increase over the prior year.
ETFs are popular primarily because they are inexpensive to own compared with most other investment products. Annual management fees and other ownership costs typically fall well below 1% of assets, with some funds charging as little as 0.03%. Intense competition—especially among asset-allocation and index funds—continues to push fees lower. Trading costs have dropped as well: almost all of Canada’s major online brokerages now offer at least some ETFs with zero commissions, making ETF investing more accessible and affordable for self-directed investors.
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MoneySense is an award-winning personal finance magazine serving Canadians since 1999. Our editorial team of trained journalists collaborates with leading Canadian financial experts to evaluate products and explain complex money issues. To help readers find the best options, we compare offerings from major banks, credit unions and card issuers. Learn more about our advertising policies and trusted partners on our disclosures page.
The best ETFs in Canada for 2026
| ETF | Ticker | Mgt. fee | MER | Holdings | Description |
|---|---|---|---|---|---|
| Vanguard FTSE Canada All-Cap Index ETF | VCN | 0.05% | 0.06% | 205 | Very low fees and strong liquidity |
| iShares CORE S&P/TSX Capped Composite Index ETF | XIC | 0.05% | 0.06% | 218 | A reliable choice with a long track record |
| iShares S&P/TSX 60 Index ETF | XIU | 0.15% | 0.18% | 61 | Higher distribution yield (around 3%) and long-term growth potential |
| Vanguard Total Stock Market ETF | VTI | NA | 0.03% | 3608 | U.S.-listed broad-market ETF with an extremely low MER |
| Vanguard S&P 500 Index ETF | VFV | 0.08% | 0.09% | 506 | Canadian-listed S&P 500 exposure, unhedged for currency diversification |
| iShares Core S&P U.S. Total Market Index ETF | XUU | 0.07% | 0.07% | 2488 u/l | Canadian-listed U.S. total market fund, cap-weighted and unhedged |
| iShares Core S&P 500 Index ETF | XUS | 0.08% | 0.09% | 503 u/l | Unhedged S&P 500 exposure on the TSX |
| Vanguard US Total Market Index ETF | VUN | 0.15% | 0.17% | 3503 | Includes mid-cap exposure beyond the S&P 500, Canadian listing |
| iShares Core S&P Total U.S. Stock Market ETF | ITOT | 0.03% | 0.03% | 2482 | U.S.-listed fund providing broad exposure to the U.S. market |
| Vanguard FTSE Developed All-Cap ex-North America index ETF | VIU | 0.20% | 0.23% | 3,914 | Tracks FTSE Developed All Cap ex-North America, including South Korea |
| TD International Equity Index ETF | TPE | 0.17% | 0.19% | 908 | Tracks the Solactive GBS Developed Markets ex North America Large & Mid Cap CAD Index |
| Vanguard FTSE Developed All-Cap ex-North America index ETF CAD-hedged | VI | 0.20% | 0.22% | 3,733 | CAD-hedged version of VIU with comparable fees |
| Vanguard Canadian Aggregate Bond Index ETF | VAB | 0.08% | 0.09% | 1,257 | Tracks Bloomberg Global Aggregate Canadian Float Adjusted Bond Index |
| TD Canadian Aggregate Bond Index ETF | TDB | 0.07% | 0.08% | 1210 | Broad Canadian aggregate bond exposure with a low MER |
| BMO Aggregate Bond Index ETF | ZAG | 0.08% | 0.09% | 1,685 | Most liquid Canadian aggregate bond ETF, tracks FTSE Canada Universe Bond Index |
| iShares Core Equity ETF Portfolio | XEQT | 0.17% | 0.20% | 5 ETFs/8,425 u/l | Globally diversified equity fund: ~45% U.S., 25% Canada, 25% EAFE |
| iShares Core Growth ETF Portfolio | XGRO | 0.17% | 0.20% | 8 ETFs/21,875 u/l | Growth-oriented asset mix with roughly 80% equities and 20% bonds |
| iShares Core Balanced ETF Portfolio | XBAL | 0.17% | 0.19% | 8 ETFs | Classic balanced 60/40 stock/bond allocation in a single fund |
| Vanguard Balanced ETF Portfolio | VBAL | 0.22% | 0.24% | 9 ETFs/>30,000 u/l | Original Canadian all-in-one asset allocation fund, ~2.54% yield |
| Global X 0-3 Month T-Bill ETF | CBIL | 0.10% | 0.11% | 6 | Holds Government of Canada T-bills maturing in under three months; distribution yield ~2.42% |
| BMO Money Market Fund ETF | ZMMK | 0.12% | 0.13% | 420 | Short-term government and corporate paper; trailing distribution yield ~2.28% |
| Global X High Interest Savings ETF | CASH | 0.10% | 0.11% | 5 | High-interest savings holdings; trailing yield ~2.38%, current annualized ~1.7% |
A recent survey of more than 3,000 Canadians conducted on behalf of the Canadian Exchange Traded Fund Association (CETFA) found that 22% of Canadians now own at least one ETF, with adoption strongest among younger adults. Issuers and advisors are responding: as of December 31, 2025 there were 1,848 ETFs from 48 issuers listed on Canadian exchanges, according to TD Securities. ETF assets under management fluctuate month to month, but they are projected to exceed $1 trillion in the coming years.
With rapid growth has come an explosion of choices—some highly useful and others of questionable value. The industry’s proliferation of novelty-themed funds has prompted critics to coin the term “ETF slop” for low-quality or unnecessary offerings. That makes careful selection important: investors should prioritize liquidity, low costs, and appropriate asset exposure when choosing ETFs for their portfolios.
Our methodology: How we choose the Best ETFs in Canada
To identify top ETFs for Canadian investors, we convened a panel of 10 experienced advisors, analysts and independent creators from across Canada (see bios below). The panel nominated and voted on funds across seven categories designed to cover the building blocks needed for a diversified, self-directed portfolio.
Judges evaluated funds for accurate exposure to the intended asset class, low fees and MERs, strong liquidity, and ease of use for Canadian investors. Where appropriate, index-based funds were preferred because they tend to offer transparent, low-cost access to markets; index funds still represent more than two-thirds of ETF assets under management in Canada.
After discussion and debate, the panel reached consensus on the 23 funds listed above. We present the top three vote-getters in each category (and include additional ties where relevant) so you have a manageable set of options without being overwhelmed. For portfolio decisions, consult fund documents such as prospectuses and fund fact sheets for the latest holdings and performance before investing.
One returning category this year—Desert-island ETFs—asks panelists to nominate funds they’d want if they could only hold a few choices indefinitely. These picks highlight ETFs with potential for long-term wealth building or downside resilience.
- Best Canadian ETFs
- Best U.S. ETFs
- Best international ETFs
- Best fixed-income ETFs
- Best all-in-one ETFs
- Best cash-alternative ETFs
- Desert-island ETF picks
Meet the MoneySense “Best ETFs in Canada” panel
Tony Dong is the founder of ETF Portfolio Blueprint. He holds a Master’s in Risk Management from Columbia University (2023), the Certified ETF Advisor (CETF) designation, and has completed the Canadian Securities Course and FINRA’s Securities Industry Essentials.
Alain Guillot is a retired financial advisor who now writes about personal finance on his blog, sharing practical guidance for everyday investors.
Travis Koivula is a senior wealth advisor with Island Savings Wealth Management and Aviso Wealth in Victoria. He advises business owners and executives on financial planning and portfolio decisions.
Mark McGrath is a retired financial planner who spent much of his career working with Canadian physicians and their families on retirement, tax and estate planning.
Aman Raina is an investment coach and founder of Sage Investors. He teaches individual investors how to make better decisions when buying and selling stocks and ETFs.
Michelle Robertson is a CPA and financial planner who founded Ms. Money and Math to help women simplify finances and grow net worth with clear, practical strategies.
Sam Rook is a portfolio manager and managing partner at Q Wealth Partners and a founding partner at Bird’s Eye Wealth Planners in Toronto. He incorporates ETFs into his investment approach and advocates their broad use.
Mark Seed is the founder of My Own Advisor, a blog for DIY investors. He follows a hybrid strategy of ETFs and individual securities and has achieved financial independence.
Ioulia Tretiakova is vice-president and director of quantitative strategies at PUR Investing Inc. She specializes in risk management and quantitative portfolio construction and has authored peer-reviewed research on pensions and retirement.
Mark Yamada is CEO of PUR Investing Inc. He writes and speaks about ETF strategies and pensions and publishes research on advanced retirement strategies.
Watch: MoneySense – BMO ETFs – ETFs and Mutual Funds fees
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