Canada's Top 45 ETFs for 2023 (2023)

I remember when I started writing about the best ETFs in Canada almost twenty years ago, and the list was pretty short! There was no such thing as aCanadian Dividend ETFso oneCanadian All-in-One ETF.

Today, I recommend the vast majority of Canadians use ETFs because of the low annual fees, the fact that they can trade freely with my favorite broker, and how easy they have made investing.

The only problem is that investment firms have realized how popular the term ETF (Exchange Traded Fund) has become, so they did what they always do and tried to muddy the waters by hoping to label any product new as expensive. an ETF' and make sure you buy it.

The truth is that the best Canadian ETFs are all very simple, very cheap and very passively managed. Check out the full list of ETFs below for an overview of the best picks in each category.

How do I choose which ETF to include in my portfolio?

Due to the different goals and risk tolerances of different types of investors, we decided to "compare apples to apples" and select the best Canadian ETFs across multiple categories, focusing on three quantifiable areas.

1) Cost of the EIA

2) Variation range(how many stocks and bonds included)

3) Tax efficiency(much more important for Canadians investing outside of RRSP and TFSA)

Minetop 9TOP Favorite ETFs in Canada for 2023

• iShares Core Equity ETF-portefeuille (XEQT)–The easiest ETF solution possible.volumeXEQT Assessment.
• Horizontes S&P/TSX 60 ETF (HXT) –Best TSX ETFs
• BMO Aggregate Bond Index ETF (ZAG) -Best Canadian Bond ETF
• Horizons S&P 500 Index ETF (HXS) -Best US Stock ETF for Canadians
• Vanguard FTSE Global All Cap ex Canada Index ETF (VXC) –Best International ETF for Canadians
• Vanguard All-Equity ETF-portefeuille (VEQT) –The best all-in-one ETF. volumeVEQT evaluation.
• ETF del índice FTSE Canadese High Dividend Yield (VDY) –Best Dividend ETF
• Vanguard FTSE Canada Limited REIT Index ETF (VRE) –Best Canadian REIT ETF
• iShares Canadian Growth ETF (XCG) –The best growth ETF for Canada

We have dozens more ETF investment options for Canadians, in Canada and internationally. Keep scrolling and read what our writers and editors think about the best investment opportunities and ETFs in particular. You can go toCanada Best ETFs List [45 Options to Choose From].

How to buy cheap ETFs in Canada

The basic idea is that if the stocks or bonds are individual bananas, you must first choose the store you want to go to, and then decide which bunch of bananas you want.

1.Choose a Canadian online broker and sign up. read oursQtrade ReviewTo see why we think it's the best, check out ours.Canadian Brokers Comparisonhere.

2.While you're in the registration phase, do yourself a favor and sign up for a TFSA and RRSP and an unregistered account. You may never use one or two, but it's easier to do them all at once while doing the initial setup.

3.Take 30 minutes to understand how "buy this store" works. Each broker has a short tutorial that shows you how to type the ETF symbol and then how many units of the ETF you want to buy.Guide to buying shares.also shows this.

4.Decide which 'Banana Bunch' is best by reading our guide to the best ETFs in Canada above.

5.After choosing your bunch of bananas, pay for it by deciding how much money you want to invest at the time and then dividing that number by the cost of the ETF.

For example, let's say I have $1000 to invest this month and I want to use VEQT. I would put the initials VEQT on my stock buy screen and see that one unit of VEQT costs $37.07. So you would divide $1000 by $37.07 to get 26.97.

Even though I have almost enough money to buy 27 units of VEQT, I can't do it so I enter '26' on my buy screen and then click 'buy order' (you can also use a limit order, it just adds a little complexity) and you will see a confirmation message appear that says something like:

"Do you want to buy 26 units of VEQT for $963.82?".

Then press "CopenhagenAnd boom, you just bought a batch of over 10,000 bananas from all over the world!

Our exclusive list of the best ETFs in Canada (45 picks)

Scroll down below the comparison chart for a full overview of each ETF, but without further ado, here's MDJ's editorial team's list of the best ETFs in Canada.

This is our short list of the best Canadian ETFs from 37 ETF providers in Canada, including BMO Asset Management, Vanguard Investments Canada Inc., BlackRock Canada, and Horizons ETFs Management (Canada) Inc.

If you want the easiest possible way to diversify your money, buy oneall-in-one ETFsis your best option. If you open a Qtrade discount brokerage account, you can use theVEQT ETFFree. It's the best deal in Canada. Robb Engen inboomer in echoHe has written extensively about how he uses VEQT across his entire investment portfolio.

If you want the lowest cost portfolio of indices, along with the ability to do your own portfolio calculations and consider Canadian stocks, choose the combinationHXT, VXC, YeahZAG.

If your portfolio goal is to generate revenue (rather than maximize growth opportunities and reduce costs), check outVRIF, VRE, YeahBECAUSEare great places to start.

See below for a more detailed explanation of the best of our class.

See our article onhow to buy stocks in canadaand oursCanadian Online Brokers Comparisonfor detailed information on how to buy ETFs in Canada.

Best ETF on the Canadian Stock Exchange

It's amazing how easy and cheap it is to invest in a Canadian ETF today than when I started investing about 15 years ago.

The competition has done its job and costs have come down significantly across the asset class. You can't go wrong with one of our top 4 options: HXT, VCN, XIC, or ZCN.

Best in Class: Horizons Horizons S&P/TSX 60 ETF (HXT)

• Lowest rate (after discount) 0.04%
• Canada's Top 60 Stocks
• Exchange-based ETF means low tracking error
• Ideal for tax efficient investments

Personally, I love HXT not only for its slight cost advantage, but also for its tax benefits on unregistered accounts. Whether you invest in a non-registered account or a corporate account, turning those Canadian dividends into deferred capital gains can make a world of difference.

honorable mentions:

1. Vanguard FTSE Canada All Cap Index ETF (VCN)
2. iShares Core S&P/TSX Limited Composite Index ETF (XIC)
3. BMO S&P TSX Limited Composite Index ETF (ZCN)

• They all have the same low MER of 0.06%.
• They all provide access to some smaller Canadian stocks.
• Great value, especially in an RRSP or TFSA

Best Canadian Bond ETFs

Sure, there isn't much love for bonds these days. That being said, they can still serve a valuable stabilizing function for your portfolio. When it comes to bond ETFs, the question is getting low-cost access to ultra-stable blue-chip government and corporate bonds.

Best in Class: BMO Aggregate Bond Index ETF (ZAG)

• Ultra earns PLUS 0.08%
• Access the widest diversification of bonds
• Safe and stable: perfect for balance

Honorable Mentions:

1. Vanguard Canadian Aggregate Bond Index ETF (VAB)
2. BMO Discount Bond Index ETF (ZDB)
3. Vanguard Short-Term Canadian Bond ETF (VSB)

• VAB cases identical to ZAG
• ZDB has some interesting tax reporting features for unregistered accounts
• VSB uses only short-term bonds to hedge against rising inflation

Best US Stock ETF for Canadians

If this is the type of ETF that interests you the most, I recommend that you also read the more detailed analysis and comparison hereBest Canadian Dollar ETFs for US Stocksarticle.

Best in Class: Horizons S&P 500 Index ETF (HXS)

• Slightly higher MER than competitors
• A valuable, tax-efficient structure can save investors $$$ in taxes on dividends
• Almost no tracking error due to swap-based structure

Honorable Mentions:

1. ETF iShares Core S&P US Total Market Index (XUU)
2. Vanguard S&P 500 Index ETF (VFV)
3. BMO S&P 500 Index ETF (ZSP)

• XUU has the lowest MER fee of 0.07%
• XUU has the broadest exposure to smaller US stocks
• VFV and ZSP are essentially identical in terms of shares and fees.

Best International ETFs for Canadians

Best in Class: Vanguard FTSE Global All Cap ex Canada Index ETF (VXC)

• Super easy access to worldwide inventory outside of Canada
• Highest possible exposure (greater than XAW)
• Ideal for the "Two-ETF Portfolio"

Honorable Mentions:

1. iShares Core MSCI All Country World ex Canada Index ETF (XAW)
2. Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)
3. Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)

• XAW is a close second to VXC and offers a slightly lower MER for less overall diversification.
• VEE is ideal for specific investors who want immediate access to emerging markets.
• VIU is ideal for specific investors who want immediate access to developed markets outside of the US and Canada.

Best All-in-One Canadian Portfolio ETFs

We have a detailed descriptionCanadian ETFs all in onewhich we have been updating every few years since the first Vanguard Portfolio ETF was launched a few years ago.

In short, these instant differentiators have been a game changer for the entire industry. With low cost and the value of simplicity on their side, they are a great solution for the "set it and forget it" investor.

Best Canadian Dividend ETFs

When selecting itCanada's Best Dividend ETFIt has been our theme at MDJ since they first arrived in Canada. While many readers now prefer to choose their owncanadian dividendsThere is no question about the plain and simple value of directly diversifying Canadian dividend income with an ETF market.

Now that most of the original readers who have stayed with MDJ for more than a decade have retired (in a wide variety of ages), the focus on generating income rather than taking risks has come to the fore. Fortunately, the Canadian market offers some of the most consistent dividend payers around.

If you're looking for other ways to optimize your retirement income and achieve a stable retirement plan, I recommend you check out Kyle's Worry Free Retire online course. In it, Kyle covers all the essentials that make up a successful retirement plan and the common mistakes most Canadians make.

Best Canadian REIT ETFs

Like Canadian dividend ETFs, real estate investment trusts (REITs) hold a special place in the hearts of income investors. Although this asset class has struggled recently, in an income-hungry world, they offer an easy way to invest in real estate. (Something many Canadians look for in their wallets.)

You can also read my manual.invest in Canadian REITsand our comparison betweenwith a Canadian REIT ETF and an individual REIT.

Best-in-Class: Vanguard FTSE Canada Limited REIT Index ETF (VRE)

• Lower MER by far 0.38%
• Solid exposure to a wide variety of real estate sectors
• In addition, a great geographical diversity

Honorable Mentions:

1. ETF of the BMO Equal Weight REIT Index (ZRE)
2. ISShares S&P TSX ETF REIT INDEX capped (XRE)

• Slightly more exploits than VRE
• Significantly higher cost - Significant for a product with certain revenue

While many MDJ investors focus on mature companies with a strong track record of increasing dividends, there are always risk-averse investors who want growth at any cost. For them. XCG Rules.

• Relatively high MER of 0.55%, which I expect to drop with more competition
• Quick access to Canada's fastest growing tech companies
• It has worked quite well in recent years.

Best Specialized Canadian ETFs

This was our roundup category of the best Canadian ETFs that don't really fit into any category. Each of them does something completely different:

Beste Pensioeninkomen-ETF: Vanguard Retirement Income Fund (VRIF)

• Invested in a wide variety of investment grade bonds from around the world, as well as a variety of stock indices.
• Great option for a retiree who doesn't want to risk a pure stock portfolio
• The stated objective is a constant return of 4% per year (net cost)
• TME 0,32%

Best Bitcoin ETF: Target Bitcoin ETF (BTCC.B)

• Canada's Most Popular and Liquid Bitcoin ETF
• easy exposure
• I personally don't like Bitcoin... but if you want an easy way to get involved...
• MER of 1.00% is indicative of rates in this space

Best Technology ETF: Invesco Nasdaq 100 ETF (QQC-F)

• If you believe that the technology sector will experience explosive growth in the future, QQQ is the easiest way to invest with Canadian dollars.
• Follow the Nasdaq-100 Index (100 largest US technology companies)
• Very reasonable MER of 0.25%

Best Value ETF: Avantis International Small Cap Value ETF (AVDV)

• Kudos to Ben Felix for this recommendation and for trying to explain rate reversal to Canadians.
• The main idea here is that small-cap stocks tend to outperform larger-cap indices (such as the S&P 500 or TSX 60) over the long term.
• 0,36% TME

Mejor ETF ESG: BMO Balanced ESG ETF (ZESG)

• Created for investors who want to invest alongside their socially responsible values
• 60% stocks, 40% fixed income
• 50% Canada, 35% USA, 15% Other
• Competitive TCM 0.20%

Best Canadian ETFs for RRSPs and TFSAs

For the vast majority of Canadians with investments in the stock market, their entire portfolio is made up of their RRSP and TFSA.

Hey, if you can consistently max out those registered accounts each year, you're doing great!

When it comes to choosing exactly the best ETFs for your RRSP and TFSA, it all comes down to these questions:

1)How much do you value simplicity?

2)Are you comfortable doing a little math a few times a year to rebalance your portfolio and keep your MER fees to a minimum?

3)Do you want a specific preference for Canadian stocks, income generating investments or another niche?

Depending on your answers to these questions, the best Canada ETF will vary from person to person.

When I recommend it to the general public, I love VEQT for new investors and then for the rest of the all-in-one ETF family. It just has too much value to be simple and drive people to action by logging into their online brokerage account once a month and buying the same ETF over and over again.

If we want to rebalance our portfolios the old-fashioned way, we can remove some MER points by using HXT, ZAG, and XUU on Canadian stocks, Canadian bonds, and US stocks, respectively.

Finally, if you're just looking for a very secure and stable net income game, I really think VRIF is worth a look.

Which Canadian ETF had the best returns in 2022??

One of the most popular questions we get about ETFs is which Canadian ETF has performed the best recently. Frankly, it's a question that deserves a more nuanced answer than the person asking it would like to read.

Here is the short version of the best ETF returns in 2022:

• Ninepoint Energy Fund (NNRG)
• Ishares S&P 500 TSX Limited Energy Index ETF (XEG)
• BMO S&P TSX Eql Weight Oil Gas Index ETF (ZEO)
• Ishares Global Agri Index ETF (COW)
• Horizons US Dollar Currency ETF (DLR)

These top five total return Canadian ETFs for 2022 perfectly illustrate why the ETF that has the most gains in any given year is not a good way to determine the best ETF overall. This shouldn't surpriseCanadian power reservesand ETFs have outperformed this year, but that's not really a good way to predict what the future holds.

If you put much of your portfolio into these companies at record levels right now, it's unlikely they'll continue to outperform in the future. Instead, continue to diversify your portfolio as described above.

By the way, the next best ETFs were more energy ETFs and then various high interest savings account ETFs. You know, if you have the high-interest basic ETFs in your head, it's been a pretty rough year for almost every sector of the stock market!

Best Canadian ETFs: FAQs

ETFs vs. Mutual Funds: Why EIA Can Make a Big Difference

When considering ETFs vs. mutual funds in Canada, the real key to understanding them is the amount of money paid out in fees each year.

There are other benefits, but the most important factor when comparing ETFs and mutual funds in Canada is the management expense ratio (or MER fee). This fee is expressed as a percentage of your total assets and is charged to you. Either your investments make money or you lose it!

Over time, even a very small difference in MER can make a big difference in how quickly your investments add up.We're talking hundreds of thousands of dollars for the average Canadian!

average net worthmutual fund in canadaIt has between 10 and 40 times the annual fees that Canadian ETFs have. Once you understand this important fact, it's easy to see why young investors now prefer ETFs to the traditional mutual funds that our parents and grandparents invested in years ago.

These costs can add up quickly! If we ignore the fact that most actively managed mutual funds fail to reward their investors with returns as good as a passively managed ETF—and focus only on costs—mutual fund costs can make a difference. huge difference.

For example, if we look at two portfolios that invest in Canadian and global stocks in the decades leading up to retirement, we see that the difference in MER would lead to a six-figure difference in the final size of savings.

Here are some other minor points when it comes to choosing between Canadian ETFs and mutual funds:

• Buying and selling an ETF is quite simple: just open an online brokerage account and follow the steps above to buy ETFs. In the case of mutual funds, this usually means calling customer service, doing business with an adviser, etc.

• In general, most ETFs are significantly more tax efficient than their closest peers.

• ETFs give you more control over your overall investment portfolio, as you can buy, sell, or rebalance as you wish.

Which Canadian ETF should you buy?

Our investment portfolios should be as unique as our investment wants and needs.

Since each of us values ​​stability and risk differently than reward, it's impossible to say which Canadian ETF is best for your unique situation without knowing you and your complete financial plan.

It's also important to always keep in mind that no matter what you're told, it's impossible to know in advance which ETF will provide the best returns in a short period of time, such as a month or even a year.

Instead, you should focus on defining your investment goals, determining your risk tolerance, and then choosing the right ETFs for that personal investment profile.

The best Canadian ETFs offset the need for easy diversification, plus minimal costs, to offer Canadians unmatched value compared to a decade ago.

The main takeaway from our Ultimate Guide to the Best Canada ETFs 2023 is that there are now so many great options available in all the major categories that it's important not to get carried away. The competition has ensured that every ETF on this list offers fantastic value at a great price.