Best ETFs for Canadians in 2026

I'm going to make this simple. Uncomfortably simple.

Buy XEQT. Done. Article over.

Okay, you probably want more than that. Fine. But I want you to know that every word I write after this sentence is just elaborate justification for the above. The answer doesn't change.

Why I Have Such a Strong Opinion About This

I've watched people spend months agonizing over ETF selection. Spreadsheets comparing 12 different funds. Reddit threads debating whether VEQT or XEQT is marginally better. Hours of research that ultimately leads to picking one of two nearly identical products.

Meanwhile the market is going up without them.

The best investment decision is the one you actually make. And the single biggest thing standing between most Canadians and a decent investment portfolio is the illusion that this is complicated.

It isn't.

The One Number That Matters Before Everything Else: MER

The management expense ratio is the annual fee you pay just for holding an ETF. It comes out of your returns silently, no invoice, no line item. You just quietly grow a little less rich every year.

A typical Canadian bank mutual fund charges 2% to 2.5% per year. XEQT charges 0.20%. On a $100,000 portfolio over 25 years, that difference is over $100,000 in lost returns. Not a typo. Over a hundred thousand dollars. Because of fees you didn't know you were paying. This is why we wrote a whole other article about mutual fund fees and why they're basically theft in slow motion.

The All-in-One ETFs You Need to Know About

These are single ETFs that hold thousands of companies across the entire global market. You buy one. It rebalances itself. You do nothing.

XEQT (iShares Core Equity ETF Portfolio) | MER: 0.20% | 100% equities, roughly 25% Canadian, 45% US, 30% international, over 8,400 companies. This is the one. Largest all-in-one ETF in Canada by assets. Lowest cost in its category. If you're under 45 and investing for retirement, there is no meaningful argument against starting here.

VEQT (Vanguard All-Equity ETF Portfolio) | MER: 0.22% | Very similar to XEQT. Slightly more Canadian exposure, slightly higher MER. Totally fine. The difference between XEQT and VEQT over 30 years is rounding error. If you have strong Vanguard loyalty, VEQT is a perfectly reasonable choice. Just pick one and stop thinking about it.

XGRO (iShares Core Growth ETF Portfolio) | MER: 0.20% | 80% equities, 20% bonds. Same cost as XEQT, just with a bit of cushioning. If you're within 10 to 15 years of retirement, or you know yourself well enough to know you'll panic-sell during a crash, the bond exposure here is genuinely useful.

VGRO (Vanguard Growth ETF Portfolio) | MER: 0.24% | Same 80/20 structure as XGRO, Vanguard version. Slightly higher MER. If VEQT is your 100% equity choice, VGRO is your 80/20 choice. Consistent.

ZGRO (BMO Growth ETF) | MER: 0.20% | BMO's 80/20 product. Same MER as XGRO, slightly higher dividend yield. Underrated. People sleep on BMO's ETF lineup.

What About SPY and VOO? (The US Ones Everyone Talks About)

VOO has a 0.03% MER. It's beautiful. Yes, US markets have crushed global markets for the past decade.

Here's the catch: you're Canadian.

If you hold VOO in a TFSA, US dividend withholding tax applies. That's 15% off your dividends, quietly. In an RRSP, the tax treaty eliminates this, so VOO in an RRSP is actually excellent. In a TFSA, a Canadian-listed ETF that holds US stocks beats VOO on after-tax returns.

Also: betting everything on the US market continuing to outperform is fine until it isn't. The last decade doesn't predict the next one. Global diversification is boring and correct.

Things I Would Not Buy

Bank mutual funds with 2%+ MERs. Already covered. Don't.

Leveraged ETFs. Great in bull markets, catastrophic otherwise. Not for building wealth over decades.

Thematic ETFs. AI ETFs. Cannabis ETFs. Clean energy ETFs. They sound smart, they underperform broad indexes over time, and they'll be replaced by the next trend before you know what happened.

Covered call ETFs with suspiciously high yields. The yield is real. The price you pay for it is capped upside. Long-term, you get less.

The Actual Bottom Line

XEQT. Automatic contributions. Leave it alone.

I know that sounds like I'm oversimplifying. I'm not. The research on this is overwhelming. The biggest destroyer of retail investor returns isn't fees or market crashes. It's checking your portfolio too often and making emotional decisions at the wrong time.

A boring ETF you contribute to automatically and ignore is one of the most powerful financial tools available to Canadians. You don't need to be smart about the market. You need to be consistent and patient.

Use our ETF comparator tool to see how these funds stack up side by side. And if you're not sure which account to hold them in, our guide on what to actually buy inside your TFSA is the right next read.