Best ETFs in Canada for Beginners and Long-Term Investors

Canadians searching for the best ETF in Canada usually land on the same short list. Two funds hold the whole world in one ticker. Two others track a single market.

We compared four of the most-searched ETFs using only each sponsor’s official fund page, as of September 2026. No fund here is a sure bet, and none of them promises a return.

Key takeaways

• All-in-one ETFs like XEQT and VEQT are a complete stock portfolio in one purchase.
• Single-market ETFs like VFV and XIU are cheaper or simpler, but less diversified.
• Compare the management expense ratio (MER): it comes out of the fund every year.
• ETFs are not covered by CDIC deposit insurance. Their value moves with the market.

Best ETFs in Canada at a glance

Fees and fund facts as of September 2026, from each sponsor’s official fund page. Details in each section below.

1. iShares Core Equity ETF Portfolio (XEQT)

A single ETF that owns other iShares ETFs covering stock markets around the world, rebalanced automatically.

At a glance

• Mix: targets 100% equity; 5 ETF holdings with 8,301 underlying holdings as of September 22, 2026.
• Cost: management fee 0.17% (cut from 0.18% on December 18, 2025); MER 0.19%.
• Size: about $23.1 billion in net assets as of September 22, 2026.
• Distributions: quarterly. Eligible for registered plans such as a TFSA or RRSP.

Pros and cons

• Global diversification and rebalancing in one purchase.
• Lowest MER of the two all-in-one funds here.
• No bonds: it can fall as much as the stock market does.
• You can’t change the country mix yourself.

How to buy

Search for the ticker XEQT on the Toronto Stock Exchange in any brokerage account, including a TFSA, RRSP or FHSA.

2. Vanguard All-Equity ETF Portfolio (VEQT)

Vanguard’s answer to the same idea: a fund of index funds with a long-term target of 100% stocks.

At a glance

• Mix: a strategic allocation of 100% equity through underlying index funds.
• Cost: management fee 0.17%; MER 0.22%, as of the most recent fund year end.
• Size: $17.02 billion in total assets.
• Distributions: once a year.

Pros and cons

• Same one-ticket simplicity as XEQT, from another large sponsor.
• Annual distributions mean less cash to reinvest along the way.
• Slightly higher MER than XEQT as of September 2026.
• 100% stocks: not built for money you need soon.

How to buy

Buy the ticker VEQT through an online brokerage or a financial advisor, in a registered or non-registered account.

3. Vanguard S&P 500 Index ETF (VFV)

A low-cost way to own the 500 large US companies in the S&P 500, bought on a Canadian exchange.

At a glance

• Holdings: invests mainly in Vanguard’s US-listed S&P 500 ETF.
• Cost: management fee 0.08%; MER 0.08%.
• Size: $35.16 billion in total assets.
• Distributions: quarterly. Vanguard also offers a currency-hedged version.

Pros and cons

• The lowest fee of the four.
• Simple to understand: one index, one country.
• Only US large companies, so less diversified.
• Exchange rate swings affect your returns in dollars.

How to buy

Buy VFV through any Canadian brokerage. Many investors pair it with a Canadian and an international fund.

4. iShares S&P/TSX 60 Index ETF (XIU)

A fund of large Canadian companies, launched in 1999, that BlackRock calls one of the largest and most liquid ETFs in Canada.

At a glance

• Holdings: 61 holdings, tracking the S&P/TSX 60 Index, as of September 22, 2026.
• Cost: management fee 0.15%; MER 0.17%.
• Size: about $22.8 billion in net assets.
• Distributions: quarterly; 12-month trailing yield 2.13% as of September 21, 2026, which can change.

Pros and cons

• Large, liquid fund of well-known Canadian companies.
• Regular distributions for income-minded investors.
• Concentrated in one country and a few sectors.
• Higher fee than VFV for a narrower market.

How to buy

Buy the ticker XIU on the Toronto Stock Exchange through your brokerage.

How to choose

• Choose XEQT or VEQT if you want one fund for decades and no rebalancing chores.
• Choose VFV if you want the lowest fee and accept US-only, unhedged exposure.
• Choose XIU if you want Canadian companies and quarterly distributions.
• Choose none of them if you need the money within a few years; a savings account or GIC fits better.

Before buying, build a cash cushion in a high-interest savings account. Then pick the account: a TFSA for flexibility, an RRSP for the deduction, or an FHSA if you are saving for a first home. You’ll need a broker; our list of investment apps in Canada and our Wealthsimple review compare costs. Prefer someone else to choose? See robo-advisor or DIY investing.

Checklist

• Keep an emergency fund in cash first.
• Decide on TFSA, RRSP or FHSA.
• Check the MER on the sponsor’s fund page.
• Check what the ETF holds and how concentrated it is.
• Check your broker’s trading fees.
• Set a regular contribution and review once a year.

How we compared these ETFs

• Checked: every fee and fund fact on September 23, 2026, on each sponsor’s official fund page (BlackRock Canada and Vanguard Canada). Figures carry the sponsor’s own as-of date.
• Order: no ranking. All-in-one funds come first because they suit most beginners; the Quick answer names a starting point.
• Criteria: MER, diversification, size and distribution frequency. We did not use past returns to pick funds.
• Scope: ETFs listed in Canada, for Canadian residents.
• Independence: no fund sponsor paid for placement.

FAQ

What ETFs does Reddit recommend in Canada?

Canadian investing forums often discuss all-in-one ETFs such as XEQT and VEQT. Treat forum posts as opinions, and check the MER and holdings on the sponsor’s page yourself.

Which ETF is best for a TFSA?

Any of these four can be held in a TFSA; BlackRock lists both of its funds as eligible for registered plans. The better choice depends on your timeline and how much risk you can accept.

Is XEQT or VEQT better?

They share the same goal. As of September 2026, XEQT’s MER is 0.19% and VEQT’s is 0.22%. Distribution frequency and country weights also differ slightly.

Are ETFs covered by CDIC?

No. CDIC lists ETFs among products that are not eligible for deposit insurance.

Which ETFs pay dividends?

All four pay distributions: XEQT, VFV and XIU quarterly, VEQT once a year. Amounts vary and are not guaranteed.

For the full picture, see our hub TFSA / RRSP / FHSA Guide 2026 (CA), our guide to the TFSA limit for 2026 and RRSP deadlines and limits.

Sources

• BlackRock Canada — iShares Core Equity ETF Portfolio (XEQT)
• Vanguard Canada — Vanguard All-Equity ETF Portfolio (VEQT)
• Vanguard Canada — Vanguard S&P 500 Index ETF (VFV)
• BlackRock Canada — iShares S&P/TSX 60 Index ETF (XIU)
• CDIC — What’s covered

Ieveera SEO is an independent publisher, not a bank or financial advisor; content is for information only and may include paid affiliate links that never affect our rankings — always confirm current rates and terms with the provider. Rates shown in CAD; verify with the issuer. Investing involves risk, including loss of principal. Not investment advice. Past returns don’t guarantee future results.