Investing in ETFs (Exchange Traded Funds) has become an increasingly popular option for Canadian investors. ETFs offer a way to diversify your portfolio, gain exposure to specific sectors or markets, and potentially earn higher returns with lower fees compared to mutual funds. In this post, we’ll take a look at the top Canadian ETFs and everything you need to know about them.

  1. Vanguard FTSE Canada All Cap Index ETF (VCN): The Vanguard FTSE Canada All Cap Index ETF is one of the most popular ETFs in Canada. It tracks the performance of the FTSE Canada All Cap Index, which includes the largest companies in Canada. The ETF has a low management fee of 0.05% and provides exposure to a diverse range of industries, including financials, energy, and materials.
  2. iShares Core S&P/TSX Capped Composite Index ETF (XIC): The iShares Core S&P/TSX Capped Composite Index ETF is another popular ETF in Canada. It tracks the performance of the S&P/TSX Capped Composite Index, which includes 250 of the largest companies in Canada. The ETF has a low management fee of 0.06% and provides exposure to a diverse range of industries, including financials, energy, and materials.
  3. BMO S&P/TSX Capped Composite Index ETF (ZCN): The BMO S&P/TSX Capped Composite Index ETF is similar to the iShares Core S&P/TSX Capped Composite Index ETF. It tracks the performance of the S&P/TSX Capped Composite Index and has a low management fee of 0.06%. The ETF provides exposure to a diverse range of industries, including financials, energy, and materials.
  4. Horizons S&P/TSX 60 Index ETF (HXT): The Horizons S&P/TSX 60 Index ETF tracks the performance of the S&P/TSX 60 Index, which includes 60 of the largest companies in Canada. The ETF has a low management fee of 0.03% and provides exposure to a diverse range of industries, including financials, energy, and materials.
  5. iShares Canadian Select Dividend Index ETF (XDV): The iShares Canadian Select Dividend Index ETF tracks the performance of the Dow Jones Canada Select Dividend Index, which includes companies in Canada that have a history of paying dividends. The ETF has a management fee of 0.55% and provides exposure to a diverse range of industries, including financials, utilities, and telecommunications.
  6. iShares MSCI EAFE IMI Index ETF (XEF): The iShares MSCI EAFE IMI Index ETF provides exposure to international equity markets, including Europe, Australia, and Asia. The ETF has a management fee of 0.22% and provides exposure to a diverse range of industries, including financials, healthcare, and consumer discretionary.
  7. BMO Aggregate Bond Index ETF (ZAG): The BMO Aggregate Bond Index ETF tracks the performance of the FTSE Canada Universe Bond Index, which includes Canadian investment-grade bonds. The ETF has a management fee of 0.09% and provides exposure to a diverse range of bonds, including government and corporate bonds.

In conclusion, investing in ETFs is a great way to diversify your portfolio and potentially earn higher returns with lower fees. The top Canadian ETFs mentioned above are just a few options to consider when investing. It’s important to do your own research and consult with a financial advisor to determine what ETFs are best for your investment goals and risk tolerance.