Best Canadian ETFs: 22 Top-Performing Funds for 2024

If you’re looking to spice up your portfolio while keeping those risks in check, diving into the world of Exchange-Traded Funds (ETFs) might just be your ticket to success. Today, I’ll share with you a well-curated list of the best Canadian ETFs to consider adding to your portfolio.

ETFs are known for their low fees, making them an excellent investment option for new and experienced investors. Plus, they offer exposure to various assets, including Canadian and international holdings.

This article will break down the top Canadian ETFs and provide insights into their performance, risk levels, and return potential. By the end of this article, you’ll better understand which Canadian ETFs are best suited for your investment goals and risk tolerance.

Editor’s Choice of 10 Best Canadian ETFs in 2024

1. Best All-Equity ETF: VEQT – Vanguard All-Equity ETF Portfolio
2. Best All-in-one ETF: VGRO – Vanguard Growth ETF Portfolio
3. Best Balanced ETF: VBAL – Vanguard Balanced ETF
4. Best S&P 500 ETF: VFV – Vanguard S&P 500 Index ETF
5. Best Precious Metal ETF: GLD – SPDR Gold Shares
6. Best REIT ETF: ZRE – BMO Equal Weight REITs Index ETF
7. Best Dividend ETF: VDY – Vanguard FTSE Canadian High Dividend Yield Index ETF
8. Best TSX ETF: XIU – iShares S&P/TSX 60 Index ETF
9. Best Halal ETF: WSHR – Wealthsimple Shariah World Equity Index ETF 
10. Best Emerging Market ETF: VEE – Vanguard FTSE Emerging Markets All Cap Index ETF

How We Chose The Best Canadian ETFs

Choosing the best Canadian ETFs for your portfolio requires a comprehensive evaluation of multiple factors such as your investment objective, risk tolerance, performance etc.

However, our team has carefully analysed various aspects to curate a list of the top-performing Canadian ETFs, emphasizing options that will align with your investment objectives and reduce investment costs.

The following are the factors we considered while selecting the best Canadian ETFs:

• Management Expense Ratio (MER): The expense ratio is the management fee charged by an ETF. Our selection process emphasized low-expense ratio ETFs, ensuring minimal investment costs and maximising returns.
• Diversification: Diversification helps reduce the risk of individual stock or bond exposure. Hence, we selected Canadian ETFs with a diversified portfolio of securities to ensure you can benefit from the collective performance of multiple securities.
• Liquidity: ETFs trade like stocks, and their liquidity depends on their trading volume. We chose ETFs with adequate liquidity to ensure you can buy and sell them easily.
• Historical Performance: While past performance cannot guarantee future results, analyzing the historical performance of an ETF can provide insight into its performance over time. We analyzed the performance of all the ETFs on our list, and they all have maintained a great track record over the last few years.

By considering these factors and leveraging our research, you can select the best Canadian ETFs that align with your investment objectives and help you achieve your financial goals.

Disclaimer: Our team has performed extensive research and analysis to identify the best Canadian ETFs that cater to a range of investment goals and risk tolerance levels. However, we recommend consulting a qualified financial professional and taking into account your individual circumstances before making investment decisions.

Our Exclusive List of Best-Performing ETFs in Canada (22 Diverse Categories)

Choosing the best Canadian ETFs is like choosing a new car. You want a safe option that is good value and reliable and suits your needs.

However, just like a new car, identifying the best Canadian ETFs is not always easy. This is due to the multiple numbers of ETFs in Canada. But you don’t have to worry.

Here, we will delve into the world of Canadian ETFs, providing valuable insights on the different types of ETFs available in Canada, their benefits, and their risks to help you make informed investment decisions and maximise your potential returns. 

1. Best All-in-one ETFs: Vanguard Growth ETF Portfolio (VGRO)

• VGRO has an expense ratio of 0.24%
• Assets under management of $3.299 billion
• It has a 4:1 equity-to-fixed-income asset allocation ratio

VGRO is a passively managed, low-cost ETF that invests in a mix of Canadian and international equities and fixed-income securities. It follows a ‘buy-and-hold’ investment approach, and its equity holdings include growth-oriented companies in technology, healthcare, and consumer discretionary sectors. 

As of January 2024, VGRO has provided a strong 5-year average annual return of 6.58%, with a low expense ratio of 0.24%. The ETF is highly liquid and frequently trades on the TSX, allowing investors to adjust their portfolio as needed. 

VGRO’s broad-based diversification across various geographies and industries mitigates the risk of investing in a single security or sector and provides a stable long-term investment. VGRO is an excellent option for investors seeking a low-cost, diversified portfolio with moderate risk exposure.

Other top-rated all-in-one ETFs in Canada include BMO Growth ETF (ZGRO), iShares Core Growth ETF Portfolio (XGRO), and the Vanguard Growth ETF Portfolio (VGRO).

2. Best Growth ETFs: iShares Canadian Growth ETF (XCG)

• XCG has an expense ratio of 0.55%
• Assets under management of $69.1 million
• It pays quarterly dividend yields to its investors.

iShares Canadian Growth ETF (XCG) is an ETF that passively tracks the performance of the FTSE Canada Index, providing investors with a diversified mix of Canadian equities with a history of sustainable growth.

The ETF’s equity holdings are focused on growth-oriented companies in sectors such as technology, healthcare, and financials, with a significant weightage towards the information technology sector.

As of January 2024, XCG has delivered a 5-year average annual return of 10.06%, indicating strong performance. While its expense ratio of 0.55% is higher than VGRO’s, it is still considered relatively low compared to actively managed funds. The ETF’s high liquidity also provides flexibility to investors, with a high trading volume on the Toronto Stock Exchange (TSX).

Furthermore, XCG’s diversification benefits are noteworthy, with its broad-based exposure across various Canadian industries and sectors mitigating the risk of investing in a single security or sector. 

Other top-performing growth ETFs in Canada include CIBC Global Growth ETF (CGLO) and the Franklin Global Growth Active ETF (FGGE).

3. Best All-equity ETFs: Vanguard All-Equity ETF Portfolio (VEQT)

• VEQT has an expense ratio of 0.24%
• Assets under management of $2 billion
• It is more of a long-term passive investing product
• It is largely concentrated in North America, over 70%.

Vanguard All-Equity ETF Portfolio (VEQT) is a passively managed fund that invests in diverse global equities, providing investors with a long-term, high-growth portfolio with a high-risk tolerance. 

Its equity holdings include large, mid-, and small-cap companies across developed and emerging markets, focusing on growth-oriented sectors such as technology, healthcare, and consumer discretionary. 

Recently, VEQT has provided a strong 5-year average annual return of 15.11%. The ETF’s expense ratio of 0.24% is low, making it an attractive choice for cost-conscious investors. VEQT’s liquidity is high, and its diversification benefits significantly reduce the risk of investing in a single security or sector. 

Other top-performing all-equity ETFs in Canada include the BMO All-Equity ETF (ZEQT) and the iShares Core Equity ETF Portfolio (XEQT).

4. Best ETF for Conservative Investors: Vanguard Conservative ETF Portfolio (VCNS)

• VCNS has an expense ratio of 0.24%
• Assets under management of $489.07 million
• It has seven underlying stocks and is fairly concentrated in North American countries according to its geographical allocations.

Vanguard Conservative ETF Portfolio (VCNS) is a passive fund that invests in a mix of global equities and fixed-income securities, designed for investors seeking a low-risk, balanced portfolio focusing on capital preservation. 

The ETF holds large, mid-, and small-cap companies across developed and emerging markets, with a significant weightage towards defensive sectors such as healthcare, consumer staples, utilities, and Canadian and global bonds. 

As of January 2024, VCNS has provided a 5-year average annual return of 3.37.65%, with an expense ratio of 0.24%. VCNS has high liquidity and frequently trades on the Toronto Stock Exchange (TSX), enabling investors to buy and sell shares quickly and providing flexibility to adjust their portfolio as needed. 

The broad-based exposure across various global geographies and industries mitigates the risk of investing in a single security or sector, reducing the portfolio’s volatility while providing a stable long-term investment.

Other top-rated ETFs for conservative investors include BMO Conservative ETF (ZCON), Vanguard Conservative Income ETF Portfolio (VCIP), and the iShares Core Income Balanced ETF Portfolio (XINC).

5. Best Balanced ETFs: Vanguard Balanced ETF (VBAL)

• VBAL has an expense ratio of 0.24%
• Assets under management of $1.9 billion
• It has seven underlying stocks with a conservative 60/40 stock-to-bond split.
• It consists mostly of North American stocks and bonds.

Vanguard Balanced ETF (VBAL) is a passively managed fund that invests in global equities and fixed-income securities, providing a balanced portfolio for investors with moderate risk tolerance and a long-term investment horizon. 

The equity holdings include large, mid, and small-cap companies across developed and emerging markets, focusing on growth-oriented sectors such as technology, healthcare, and consumer discretionary. 

Its fixed-income holdings comprise Canadian and global bonds with varying maturities and credit ratings. VBAL has a 5-year average annual return of 8.11%, an expense ratio of 0.25%, and high liquidity, making it a cost-effective and flexible choice for investors. 

The ETF’s broad-based diversification across global geographies and industries mitigates investment risk and reduces portfolio volatility while providing a stable long-term investment.

Other top-rated balanced ETFs in Canada include the iShares Core Income Balanced ETF Portfolio (XBAL) and the BMO Balanced ETF (ZBAL).

6. Best TSX ETFs: iShares S&P/TSX 60 Index Fund (XIU)

• XIU has an expense ratio of 0.18%
• It tracks the S&P/TSX 60 market index that contains the 60 biggest stocks trading on the TSX.
• It is the oldest Canadian ETF and has the largest equity size.
• It is perfect for long-term investors.

iShares S&P/TSX 60 Index Fund (XIU) is a passively managed ETF that tracks the performance of the S&P/TSX 60 Index, which is composed of the 60 largest and most liquid companies in the Canadian equity market. 

It offers diversified exposure to blue-chip companies across various sectors, including financials, energy, and materials. 

With an expense ratio of 0.18%, XIU is a low-cost option for cost-conscious investors seeking a stable long-term investment. As of January 2024, XIU has provided a 5-year average annual return of 9.46%. 

The ETF’s high liquidity allows investors to trade shares easily, while broad-based exposure across various sectors mitigates risk.

Other top-performing TSX ETFs in Canada include the BMO S&P/TSX Capped Composite Index ETF (ZCN), Horizons Marijuana Life Sciences Index ETF (HMMJ), and the Vanguard FTSE Canada All Cap Index ETF (VCN). 

7. Best REIT ETFs: Vanguard FTSE Canadian Capped REIT Index ETF (VRE)

• VREhas an expense ratio of 0.35%
• Assets under management of $246.23 million
• It has 33% industrial and office REITs for major weightings, 23.1% residential and 19.2% retail.

Vanguard FTSE Canadian Capped REIT Index ETF (VRE) is a passively managed ETF that aims to track the performance of the FTSE Canada Capped REIT Index. The ETF offers investors exposure to a diversified portfolio of Canadian REITs covering different property types, such as residential, commercial, and industrial, focusing on larger-cap REITs. 

VRE has an expense ratio of 0.35% and has provided a 5-year average annual return of 4.87%. Furthermore, the ETF has high liquidity, which allows investors to buy and sell shares of the fund quickly.

VRE’s broad-based diversification benefits mitigate the risk of investing in a single security or sector, providing a stable long-term investment.

Other top-ranking REIT ETFs in Canada include the iShares S&P/TSX Capped REIT Index ETF (XRE) and the BMO Equal Weight REITs Index ETF (ZRE).

8. Best Precious Metal ETFs: SPDR Gold Shares (GLD)

• GLD has an expense ratio of 0.4%
• It is a liquid ETF, so holders can quickly sell their shares and convert them to cash when needed.
• Its sole assets are gold bullion stored in bank vaults and some cash.

SPDR Gold Shares (GLD) is an exchange-traded fund that invests in physical gold bullion, exposing investors to the precious metal. The ETF’s expense ratio of 0.40% is relatively low compared to other gold ETFs, making it cost-effective.

As of January 2024, GLD has delivered a 5-year average annual return of 7.95%, indicating solid performance. The ETF’s high liquidity enables investors to buy and sell shares of the fund quickly, providing flexibility to adjust their portfolio as needed.

The investment in gold provides a hedge against stock market volatility and inflation, offering diversification benefits and serving as a safe-haven asset.

SPDR Gold Shares (GLD) is a suitable investment option for investors seeking exposure to physical gold bullion. Its solid performance, low expense ratio, high liquidity, and diversification benefits make it an attractive choice for long-term investors seeking a safe-haven asset.

Other top-rated precious metals ETFs in Canada include the iShares Gold Bullion ETF (CGL), Horizons Enhanced Income Gold Producers ETF (HEP), Horizons Gold Yield ETF (HGY), and the BMO Equal Weight Global Gold Index ETF (ZGD).

RELATED: Best Silver ETFs in Canada for 2024

9. Best S&P 500 ETFs: Vanguard S&P 500 Index ETF (VFV)

• VFV has an expense ratio of 0.09%
• Assets under management of $6.74 billion
• It uses funds of funds structure by holding another US-listed S&P 500 ETF for its exposure.
• It also has a currency-hedged version – Vanguard S&P 500 Index ETF (CAD-Hedged) – VSP.

Vanguard S&P 500 Index ETF (VFV) is a passive fund that tracks the performance of the S&P 500 Index, providing exposure to a diverse portfolio of 500 large-cap US companies. The ETF boasts an expense ratio of 0.09%, making it cost-effective compared to other US equity ETFs. 

VFV’s portfolio includes reputable companies such as Apple and Amazon, delivering exposure to blue-chip companies in the US market. 

With an average annual return of 11.83% as of January 2024, VFV has shown robust performance. Furthermore, the ETF’s high liquidity allows investors to trade shares swiftly, while its diversification benefits reduce the risk of investing in a single sector. 

VFV is reliable for long-term investors seeking to invest in US large-cap companies.

Other top-ranking S&P 500 ETFS in Canada include the BMO S&P 500 Index ETF (ZSP), iShares Core S&P 500 Index ETF (XSP), and the Horizons S&P 500 Index ETF (HSX).

RELATED: 6 Best S&P 500 ETFs in Canada 2024: Invest in the U.S. today

10. Best Dividend ETFs: iShares US High Dividend Equity ETF (XHU)

• XHU has an expense ratio of 0.33%
• Assets under management of $189.19 million
• It is a passively managed ETF with US stock investments focused on dividend yield
• It tracks the Morningstar Dividend Yield Focus Index
• It has a currency-hedged version – XHD.

iShares US High Dividend Equity ETF (XHU) is a passively managed fund that invests in large and mid-capitalization US companies across various sectors. The ETF seeks to expose investors to high dividend-paying companies such as Coca-Cola, Johnson & Johnson, and ExxonMobil. 

With an expense ratio of 0.33%, XHU is a cost-effective choice for investors looking for dividend ETFs. XHU has provided a 5-year average annual return of 7.93% as of January 2024, indicating solid performance. 

Its high liquidity enables investors to buy and sell shares of the fund quickly. Additionally, XHU’s diversification benefits provide a stable long-term investment. 

iShares US High Dividend Equity ETF (XHU) is a suitable investment option for investors seeking exposure to high dividend-paying US companies with solid performance, low expense ratio, high liquidity, and diversification benefits.

Other top-performing dividend ETFs in Canada include the BMO US Dividend ETF (ZDY), Vanguard U.S. Dividend Appreciation Index ETF (VGG), Manulife Smart Dividend ETF (CDIV), BMO Canadian Dividend ETF (ZDV), and the TD Q Global Dividend ETF (TQGD).

RELATED: 12 Best Dividend ETFs in Canada For 2024

11. Best Bond ETFs: Vanguard Canadian Government Bond Index ETF (VGV)

• VGV has an expense ratio of 0.20%
• Assets under management of $62.9 million
• It is a passive ETF tracking the Bloomberg Barclays Global Aggregate Canadian Government Float-Adjusted Bond Index.

The Vanguard Canadian Government Bond Index ETF (VGV) is a passively managed ETF that offers exposure to Canadian government bonds through tracking the Bloomberg Barclays Global Aggregate Canadian Government Float Adjusted Bond Index. 

VGV has historically provided stable returns with low volatility and has an expense ratio of 0.20%, lower than the average for Canadian bond funds. 

Additionally, VGV offers high liquidity, making it easy for investors to buy and sell shares on the TSX, and diversification benefits by providing exposure to a wide range of Canadian government bonds.

VGV is a cost-effective and reliable ETF that provides investors a suitable option to gain exposure to the Canadian bond market.

Other top-performing bond ETFs in Canada include the iShares High-Quality Canadian Bond Index ETF (XQB) and the iShares 1-5 Year Laddered Government Bond Index ETF (CLF).

12. Best Crypto ETFs: CI Galaxy Bitcoin (BTCX)

• BTCX has an expense ratio of 0.83%
• Assets under management of $240.74 million
• It focuses on tracking the price movement of Bitcoin and does not offer investors any additional features.

CI Galaxy Bitcoin (BTCX) is an actively managed cryptocurrency ETF that aims to expose investors to Bitcoin through futures contracts traded on the CME. Despite its launch in March 2021, BTCX has already shown significant volatility, with its value fluctuating based on the price of Bitcoin. 

As of its last reporting date, BTCX had a YTD return of around 16%. The expense ratio of BTCX is 0.83%, higher than the average ETF but reasonable given the volatile and emerging nature of the cryptocurrency market. 

BTCX is listed on the Toronto Stock Exchange and is highly liquid. Although it offers diversification benefits, investors should be aware that investing in BTCX involves the same risks as investing in cryptocurrencies, such as regulatory and security risks and significant price fluctuations.

Other excellent crypto ETFs in Canada include CI Galaxy Bitcoin ETF (BTCX), Fidelity Advantage Bitcoin ETF (FBTC), 3iQ CoinShares Bitcoin ETF (BTCQ), and the Evolve Bitcoin ETF (EBIT).

13. Best HALAL ETFs: Wealthsimple Shariah World Equity Index ETF (WSHR)

• WSHR has an expense ratio of 0.50%
• Assets under management of $123.64 million
• It trades on the NEO exchange and not on the Toronto Stock Exchange

The Wealthsimple Shariah World Equity Index ETF (WSHR) is a passively managed ETF that adheres to Shariah principles and invests in global equities that meet the requirements of the Accounting and Auditing Organization for Islamic Financial Institutions. 

WSHR offers stable returns and low volatility, with a year-to-date return of around 13%. It has a low expense ratio of 0.50% and high liquidity on the Toronto Stock Exchange. 

WSHR provides diversification benefits by investing in various companies that meet Shariah principles. WSHR is a cost-effective and suitable investment option for those seeking exposure to the global equities market while adhering to their values.

Other top-rated HALAL ETFs in Canada include the SP Funds Dow Jones Global Sukuk ETF (SPSK), SP Funds S&P 500 Shariah Industry Exclusions ETF (SPUS), and the Wahed FTSE USA Shariah ETF (HLAL).

14. Best International Equity ETFs: Vanguard FTSE Developed All Cap Ex North America Index ETF (VIU)

• VIU has an expense ratio of 0.23%
• Assets under management of $2.73 billion
• It is not currency-hedged 
• It has a medium-length performance track record

The Vanguard FTSE Developed All Cap Ex North America Index ETF (VIU) is a passively managed ETF that tracks the FTSE Developed All Cap ex North America Index, consisting of over 3,000 stocks from 23 countries across Europe, Asia, and Australia. 

It has historically provided stable returns with low volatility and, as of its last reporting date, had a year-to-date return of around 12%, with a low expense ratio of 0.23%. 

Also, VIU offers high liquidity, making buying and selling shares on the Toronto Stock Exchange easy. It also provides diversification benefits by offering exposure to a wide range of developed countries, sectors, and companies. 

VIU is a cost-effective and diversified ETF, making it a suitable investment option for those seeking exposure to developed countries outside North America.

Other top-ranking international equity ETFs in Canada include iShares Core MSCI EAFE IMI Index ETF (XEF), TD International Equity Index ETF (TPE) and the Mackenzie International Equity Index ETF (QDX).

15. Best Emerging Market ETFs: Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)

• VEE has an expense ratio of 0.24%
• Assets under management of 1.64 billion
• It is fairly concentrated in Chinese companies and has over 30% geographical allocation to China.

The Vanguard FTSE Emerging Markets All Cap Index ETF (VEE) is a passively managed ETF that offers investors exposure to the equity markets of emerging market countries. The fund tracks the FTSE Emerging Markets All Cap China A Inclusion Index and includes over 5,000 stocks from 27 emerging market countries across Asia, Europe, Africa, and South America. 

Despite higher volatility, VEE has historically offered higher returns than developed market ETFs. As of its last reporting date, VEE had a year-to-date return of around 7%, with a low expense ratio of 0.24%, making it a cost-effective investment option.

Moreover, VEE offers high liquidity, allowing investors to buy and sell shares easily on the Toronto Stock Exchange, and offers diversification benefits through exposure to a wide range of emerging market countries, sectors, and companies.

VEE is a diversified ETF that offers the potential for higher returns and is suitable for investors seeking exposure to emerging market countries.

Other top-rated emerging market ETFs in Canada include the Horizons Emerging Markets Equity Index ETF (HXEM), BMO MSCI Emerging Markets Index ETF (ZEM), and the iShares ESG Aware MSCI Emerging Markets Index ETF (XSEM).

16. Best US Stocks ETFs: Vanguard S&P 500 Index ETF (VFV)

• VFV has an expense ratio of 0.09%
• Assets under management of $6.292 billion
• It has returned an average of 18.27% yearly since its inception.

The Vanguard S&P 500 Index ETF (VFV) is a passively managed ETF that offers exposure to the equity markets of the United States, tracking the performance of the S&P 500 Index, which includes 500 large-cap U.S. stocks from various industries. 

VFV has historically provided investors with stable returns and low volatility, with a year-to-date return of around 16%, higher than the overall performance of global equities. The ETF has a low expense ratio of 0.09%, significantly lower than the average expense ratio of ETFs, and offers high liquidity, making it easy to buy and sell shares on the Toronto Stock Exchange. 

VFV provides diversification benefits, offering exposure to a wide range of U.S. sectors and industries, making it a cost-effective and diversified investment option for those seeking exposure to the U.S. equity market.

Other top-performing US Stock ETFs in Canada include the iShares Core S&P 500 Index ETF (XUS) and the BMO S&P 500 Index ETF (ZSP).

17. Best Total Markets ETFs: iShares Core S&P U.S. Total Market Index ETF (XUU)

• XUU has an expense ratio of 0.07%
• It has the broadest exposure to smaller American stocks

The iShares Core S&P U.S. Total Market Index ETF (XUU) is a passively managed ETF that tracks the performance of the S&P Total Market Index, comprising over 3,000 U.S. stocks with various market capitalisations.

XUU has provided stable returns and low volatility, with a year-to-date return of around 17% and a low expense ratio of 0.07%. The ETF offers high liquidity, making buying and selling shares on the Toronto Stock Exchange easy. 

It provides diversification benefits by offering exposure to various U.S. sectors, industries, and market capitalisations. XUU is a cost-effective and diversified ETF suitable for investors seeking exposure to the U.S. equity market.

Another top-performing total market ETF in Canada is the VUS Vanguard US Total Market Index ETF (CAD-hedged).

18. Best Small Cap ETFs: iShares S&P/TSX Small-Cap Index ETF (XCS)

• XCS has an expense ratio of 0.60%
• Assets under management of $134.31 million
• It provides long-term capital growth by emulating the performance of the S&P/TSX Small-Cap Index.
• It allocates its entire assets to 235 small-cap Canadian equity securities.

The iShares S&P/TSX Small-Cap Index ETF (XCS) is an exchange-traded fund that invests in Canadian small-cap companies and tracks the performance of the S&P/TSX Small Cap Index. 

It has a low expense ratio of 0.60% and offers liquidity as it trades on the Toronto Stock Exchange. Over the past five years, the XCS ETF has returned an average annual return of 8.94%, but small-cap stocks are generally more volatile. 

The XCS ETF provides diversification benefits by investing in a basket of small-cap stocks across various sectors, reducing the risk of investing in a single stock. 

Overall, the XCS ETF is suitable for investors seeking exposure to Canadian small-cap stocks. Other small-cap ETFs in Canada include the Vanguard Small-Cap Value ETF (VBR) and the WisdomTree US SmallCap Dividend Fund (DES).

19. Best Mid-Cap Index Fund ETFs: Vanguard S&P Mid-Cap 400 Growth ETF (IVOG)

• IVOG has an expense ratio of 0.15%
• Assets under management of $728.12 million
• It seeks to track the performance of a benchmark index that measures the investment return of mid-cap growth stocks in the U.S.

The Vanguard S&P Mid-Cap 400 Growth ETF (IVOG) is an exchange-traded fund that invests in mid-sized US growth companies. The IVOG ETF tracks the performance of the S&P MidCap 400 Growth Index, providing investors with potential growth opportunities. 

The ETF has a low expense ratio of 0.15%, making it cost-effective for investors. It is also highly liquid, with many shares traded daily, making it easy to buy and sell. 

The IVOG ETF has a strong track record, returning an average annual return of 16.84% over the past five years. It invests in companies across various sectors, offering diversification benefits and reducing the risk of investing in a single stock. 

Overall, the IVOG ETF is an attractive investment option for investors looking for growth potential.

Other mid-cap index funds ETFs include BMO S&P US Mid Cap Index ETF (ZMID) and the iShares S&P U.S. Mid-Cap Index ETF (CAD-Hedged) (XMH.

20. Best ESG ETFs: iShares ESG Advanced MSCI Canada Index ETF (XCSR)

• XCSR has an expense ratio of 0.17%
• Assets under management of $155.58 million
• It provides exposure to the performance of an ESG-oriented index selected by BlackRock.

The iShares ESG Advanced MSCI Canada Index ETF (XCSR) is an exchange-traded fund that invests in Canadian companies with strong environmental, social, and governance (ESG) performance. 

The XCSR ETF tracks the performance of the MSCI Canada Extended ESG Focus Index and has an expense ratio of 0.17%. It has a strong track record of performance, with an average annual return of 14.27% over the past five years, and offers liquidity as it trades on the Toronto Stock Exchange. The ETF invests in companies across various sectors, providing diversification benefits. 

The XCSR ETF is an affordable option for socially responsible investors seeking exposure to Canadian companies with strong ESG practices. 

Other top-ranking ESG ETFs in Canada include the BMO MSCI Canada ESG Leaders Index ETF (ESGA) and the Desjardins RI Canada – Low CO2 Index ETF (DRMC).

21. Best Technology ETFs: Invesco NASDAQ 100 Index ETF (QQC)

• QQC has an expense ratio of 0.20%
• Assets under management of $674.21 million
• It offers inexpensive access to one of the US top indices, the NASDAQ 100 and QQC passively tracks the index in Canada.

The Invesco NASDAQ 100 Index ETF (QQC) is an ETF that invests in the top 100 non-financial companies listed on the NASDAQ stock exchange across various sectors. It tracks the NASDAQ-100 Index and has an expense ratio of 0.20%. 

QQC ETF has had a strong performance over the past five years, returning an average annual return of 26.89% and outperforming the S&P 500 Index. It offers high liquidity and a low expense ratio, making it an attractive investment option. 

In terms of diversification, QQC ETF provides exposure to various sectors, reducing the risk associated with investing in a single stock or industry.

Other top-rated technology ETFs in Canada include the BMO NASDAQ 100 Equity Index ETF (ZNQ), iShares S&P/TSX Capped Information Technology Index ETF (XIT), and the TD Global Technology Leaders Index ETF (TEC).

22. Best Clean Energy ETFs: Harvest Clean Energy ETF (HCLN)

• HCLN has an expense ratio of 0.40%
• Assets under management of $45.55 million
• It invests in a portfolio of the 40 largest Clean Energy Issuers from the Clean Energy Investable Universe.

The Harvest Clean Energy ETF (HCLN) is an exchange-traded fund that invests in 40 equally weighted clean energy companies from North America, Europe, New Zealand, and Asia. It is traded on the Toronto Stock Exchange, has a management fee of 0.40%, and an MER of 0.68%. 

The ETF provides investors with a pure play on the clean energy industry and offers diversification in various global clean energy organisations. 

Since its inception, the HCLN ETF has returned an average annual return of 11.98% over the past year, making it an affordable option for investors who want to invest in clean energy companies. It provides liquidity to investors and has a strong track record of performance. 

Other top-ranking clean energy ETFs in Canada include the BMO Clean Energy Index ETF (ZCLN), IShares S&P/TSX Capped Utilities Index ETF (XUT), and the Invesco Solar ETF (TAN).

RELATED: 11 Best Clean Energy ETFs in Canada

How to Buy the Best Canadian ETFs for 2024

One of the best parts about ETFs is the ease of getting them. To invest in ETFs, you have three options for buying Vanguard ETF Canada and other ETFs. These include:

1. Using a Brokerage Account

There are many brokerage platforms across Canada that you can use to buy, sell, and trade stocks, ETFs, mutual funds, options, and other investment products.

You can get online trading accounts at any of the major banks in Canada, but you can save on fees if you buy ETFs using an independent broker, like Questrade or Wealthsimple Trade.

• Questrade: Canada’s best independent brokerage platform, Questrade, offers free ETF purchases and allows you to trade stocks, options, mutual funds, GICs, currencies, etc. It offers different accounts, including RRSP, TFSA, LIF, RRIF, and corporate accounts. A $4.95 to $9.95 fee applies per trade when you sell.

• Wealthsimple Trade: Wealthsimple Inc., through its brokerage platform, Wealthsimple Trade, offers thousands of ETFs listed on the Canadian and US stock exchanges for free. There is no minimum income requirement, and it allows fractional share trading. It also offers personal non-registered accounts and registered accounts like TFSA, RRSP accounts, etc.
  

2. Using a Robo-Advisor

Robo-advisors are online asset managers using low-cost ETFs to create your investment portfolio. Thus,  you don’t have to worry about diversification or rebalancing your portfolio.

A robo-advisor’s management fee is cheaper than a bank’s management fee for mutual funds. The robo-advisor will ask questions to assess your risk tolerance investment goals and time frame before investing in an ETF.

Also, you can easily change your information anytime and set up automated contributions to your account. Moreover, robo-advisors in Canada can help you make a cost-effective decision.

RELATED: Best Robo Advisors in Canada for 2024

3. Consult a Financial Advisor

Also, you can buy ETFs through a financial advisor, who will be responsible for managing your investment portfolio. Working with a financial advisor is beneficial when your wealth grows and your financial situation becomes more complicated.

Besides managing your investment, a financial advisor will assist you with your finances. This includes retirement, taxation, and insurance planning, among other things. 

If you choose to use a financial advisor, you can ask friends or colleagues for a recommendation or use Canada’s Investment Industry Regulatory Organization to find one.

Benefits of investing in Canadian ETFs

ETFs have made investing your money easier than it has always been, and you can even become a do-it-yourself investor and keep all the returns for yourself.

Here are some of the benefits of investing in the best ETFs in Canada:

• Diversification: By investing in one or a few ETFs, you can achieve global diversification and gain exposure to hundreds or thousands of investment products.
• Transparency: Daily publication of ETF asset holdings lets you stay informed about the securities and their respective proportions.
• Lower Fees: ETFs generally have a lower management expense ratio (MER) than mutual funds. For instance, while the average MER for equity mutual funds is about 1.98%, Equity ETFs are available with MERs as low as 0.05%.
• Liquidity: Like stocks, you can purchase and sell most ETFs at your convenience if the stock market is operational.

RECOMMENDED READINGS:

• 8 Best Index Funds in Canada (2024)
• 20 Best Performing Mutual Funds in Canada for 2024 [Updated]

Final Thoughts on the Best Canadian ETFs

Canadian ETFs are a fantastic option for investors looking to diversify their portfolios and gain exposure to the Canadian market. 

With their low fees and ability to track various indexes, Canadian ETFs offer an attractive investment opportunity. 

However, whether you’re a seasoned investor or just starting out, it’s important to carefully research and select the right Canadian ETFs that align with your investment goals and risk tolerance. 

So, take the plunge and explore the world of Canadian ETFs to maximise your investment potential. Don’t miss out on the opportunity to grow your wealth with these powerful investment tools. Start investing in Canadian ETFs today and watch your portfolio soar! 

FAQs on the Best Canadian ETFs to Buy

Are ETFs Safer than Stocks?

While both ETFs and stocks have risks, ETFs are safer than stocks. However, the safety of your investment depends on your funds’ allocations, such as the industry, sectors, market capitalisation, and the fund’s assets. 

Do Any ETFs Pay Dividends?

Yes, ETFs pay dividends as per the investment objective and strategy of the fund. ETF dividends are paid monthly, quarterly, annually or during the ETF payout. 

Are ETFs Good for Retirees?

ETFs are good for retirees looking to diversify their retirement portfolios across different sectors, industries, markets, and assets. 

Can I Hold ETF in TFSA?

Yes, you can hold ETFs in a TFSA so long they’re featured on the designated stock exchange.  

Can You Lose Money on ETF?

There’s no risk-free investment, including ETFs. However, investing in low-cost, larger, low-volatile ETFs can lower your risk of losing money on an ETF.

Can a Canadian Buy US ETF?

A Canadian can buy a US ETF through online brokers such as Wealthsimple or Questrade. However, you should know that currency conversion fees may apply. 

How Much Should I Invest in ETF?

Since there’s no minimum and maximum amount you can invest in an ETF, you should invest based on your risk tolerance and investment objective. 

What Happens if an ETF Provider Goes Bust?

Once an ETF provider goes bankrupt, the ETF assets would likely be liquidated, and the proceeds shared proportionally with the investors.