Since 2006, I’ve been writing about the best Canadian ETFs, including my favourite Canadian dividend ETFs and, more recently, the best Canadian general-purpose ETFs (sometimes called portfolio ETFs). In this review, my top picks for Canadian equity ETFs are VCN and ZCN. As well, here are my top five picks for Canadian ETFs that invest in U.S. companies.
So when we talk about Canadian ETFs here, we’re talking about the selection of ETFs available in Canada that allows you to invest in the U.S. or Canadian economy. We’ve rounded up the best ETFs that invest in the Canadian or U.S. stock markets – there’s nothing special here like ETFs that close the market or only focus on particular sectors. The ETFs on our list are listed on the New York Stock Exchange (the underlying companies are listed on the Toronto Stock Exchange). In addition, the ETFs on this page tracks Canadian assets listed on U.S. exchanges.
You can use it to trade thousands of stocks and ETFs listed on Canadian and U.S. exchanges for free. One of the easiest ways is to buy a Canadian ETF (Exchange Traded Fund), which invests in the U.S. market through a stock index such as the S&P 500. In addition, you can buy ETFs in Canada through most Canadian brokerage platforms. Offers stock and ETF trading.
See our articles on buying stocks in Canada and our comparison of Canadian online brokers to learn how to buy ETFs in Canada. If you’re looking for the best ETFs to buy in Canada, we’ve listed some of the best options. If you’re looking to invest using exchange-traded funds (ETFs), this article will cover some of the best ETFs you can buy and hold in your Canadian portfolio.
Today, we will highlight the best ETFs in Canada, especially for Canadian investors. We started by ranking the best ETFs for the Canadian market, the U.S. market, the international market, and the bond market (Canadian and global). Next, we have a detailed breakdown of Canada’s Universal ETFs that we’ve updated every two years since the first Vanguard Portfolio ETF came out a few years ago. If this is the type of ETF you’re most interested in, I suggest you also read our more detailed breakdown and comparison in this article on the best Canadian dollar ETFs for U.S. stocks.
Best ETFs In Canada
If you’re jealous of dividend investors and want to get into stock but don’t feel like you have the time to track (obsess with) individual stocks and analyze them, the Canadian Dividend ETF might be for you.
The best Canadian ETFs have some clues, and we’ll see which products have done the most for investors this year. While it’s impossible to predict currency fluctuations easily, there is enough data to begin showing what returns are the best of any S&P 500 ETF traded in Canada. For example, if you look at the chart below, which represents the last five years, there are no clear winners among the top three S&P 500 ETFs.
You will find that the most significant difference between the two is what index they are trying to mimic for their stock holdings. We’ll sort them by size, with the ETFs with the most assets under management (AUM) at the top. The top five ETFs (sorted by assets under management or AUM) are listed below) investing in U.S. companies.
The top four ETFs (sorted by assets under management or AUM) are listed below that invest in Canadian companies. The top three ETFs in Canada offer high growth rates for passive or inattentive investors. This year, half of Canada’s top 10 are energy-related ETFs thanks to higher commodity prices. What sets this fund apart from others is that it’s all about capital gains — no returns here, but it’s probably the best way to take advantage of this year’s rapid energy recovery.
This ETF pays monthly dividends and is designed to track the performance of the S&P/TSX Composite High Dividend Index. It is designed to follow the performance of the S&P/TSX Capped Composite Index minus fees. In addition, the fund is designed to track the performance of the S&P/TSX Capped Composite after spending. The Fund seeks to invest in and hold securities that make up the S&P/TSX Capped Composite Index.
The Vanguard FTSE Canadian Capped REIT Index ETF is a Canadian fund that aims to replicate the results of the FTSE Canada All Cap Real Estate Capped 25% index, before fees and expenses, to the extent possible. VCN is an ETF portfolio that aims to replicate the performance of a major Canadian stock index to a reasonable extent, net of fees and costs. Market ETF MER% Number of Holdings Description Vanguard FTSE Canada All Cap Index ETF (VCN) Canada 0.05 182 Offers broad exposure to predominantly Canadian large, mid and small-cap iShares Core S&P US Total Market Index ETF (XUU ) U.S. 0 .07 3,627 Offers complete access to large, medium, small and micro capital of U.S. companies through the S&P Total Market iShares Core MSCI All Country World ex Canada Index ETF (XAW) Global, ex Canada 0.22 9.111 Covers the representation of companies with large, mid-and small-cap countries in 22 developed market countries (excluding Canada) and 23 emerging market countries.
Launched in early 2018, QCE tracks Canada’s Solactive Large Cap Index. One of the more enticing additions backed by Yves Rebetez is the Mackenzie Canadian Large Cap Index (QCE/TSX) ETF, with a minimum MER of 0.05%.
Instead, we like Vanguards VCN as Canada’s leading ETF since it works in small, medium and large-cap stocks (182 in total) with a minimum fee of 0.05% MER (compared to 0.18% for XIU). Instead of dealing with humans, the algorithm helps the company select the top 60 TSX stocks. Instead of wondering which company to invest in, an ETF gives you access to many and is managed by professionals. With thousands of ETFs to choose from, finding the best ones to suit your portfolio and investment strategy will help protect you from losses.
The ETF currently tracks the FTSE All Cap Index by investing in large, medium and small market cap stocks on the TSX. CIC is a Canadian banking ETF that aims to track the return on investment of Canada’s most important financial institutions by increasing revenue through the sale of covered call options. When buying 60 of the largest Canadian companies, it could be divided into parts or investing in Canadian government bonds.
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