Many Canadian investors unknowingly carry a heavy home-country bias. Because the TSX is dominated by financials, energy, and materials, portfolios built only with Canadian equities can lack exposure to global growth sectors like technology, healthcare, and consumer innovation.

Global ETFs solve that problem.

A global ETF gives you exposure to companies around the world in a single investment — helping reduce country-specific risk while expanding long-term growth potential. In this guide, we’ll break down the best global ETFs in Canada, how they work, and where they fit inside your TFSA or RRSP.

What Is a Global ETF?

A global ETF is an exchange-traded fund that invests in companies across multiple countries and regions.

Most global ETFs provide exposure to:

• The United States
• Europe
• Asia-Pacific
• Emerging markets

Some global ETFs exclude Canada (often called “ex-Canada”), while others include Canadian equities as part of a worldwide allocation.

Global vs International ETF

This distinction is important:

• Global ETF: Includes the U.S. and international markets (sometimes Canada as well)
• International ETF: Typically excludes the U.S. and sometimes excludes Canada

For Canadian investors, global ETFs often provide more complete diversification.

Why Canadians Should Consider Global ETFs

Canada represents only a small percentage of the global stock market. Relying solely on Canadian stocks can leave portfolios overly concentrated in a few sectors.

Global ETFs help:

• Reduce home-country bias
• Diversify across industries not well represented in Canada
• Add exposure to U.S. technology leaders
• Provide access to emerging market growth
• Reduce single-country economic risk

For long-term investors, global diversification can smooth returns and expand opportunity sets.

Pros and Cons of Global ETFs

Pros

• Broad international diversification
• Reduced country-specific risk
• Exposure to global innovation and growth
• Simple portfolio construction

Cons

• Currency fluctuations impact returns
• Foreign withholding taxes may apply
• Less concentration in Canadian dividend payers
• Performance may lag domestic markets during strong Canadian cycles

Global ETFs in a TFSA vs RRSP

TL;DR:
Global equity ETFs generally work well in both TFSAs and RRSPs. The decision often depends on contribution room and long-term strategy.

Global ETFs in a TFSA

• Capital gains grow tax-free
• Foreign dividends are still subject to withholding tax
• Ideal for long-term growth investing

Since global ETFs focus primarily on capital appreciation, TFSAs are highly efficient vehicles for holding them.

Global ETFs in an RRSP

• Tax-deferred growth
• May be slightly more tax-efficient for certain foreign dividends
• Suitable for long-term retirement planning

Non-Registered Accounts

• Foreign dividends may face withholding tax
• Capital gains taxed upon realization

For most investors, registered accounts remain the most efficient placement for global ETFs.

Best Global ETFs in Canada

Below are some of the best TSX-listed global ETFs available to Canadian investors.

1. Vanguard FTSE Global All Cap ex Canada Index ETF

• Ticker: VXC.TO
• Inception Date: June 30, 2014
• Assets Under Management: $2+ Billion
• Management Expense Ratio: 0.22%
• Investment Focus: Global equities excluding Canada
• Management Style: Passive
• Risk Rating: Medium-to-High
• Distributions: Quarterly
• Stock Price: $85.32
• YTD Return: +14.79%

VXC provides broad exposure to thousands of companies across developed and emerging markets — excluding Canada. It is often paired with a Canadian equity ETF to create a globally diversified portfolio.

Its low cost and comprehensive coverage make it a popular core holding.

2. iShares Core MSCI All Country World ex Canada Index ETF

• Ticker: XAW.TO
• Inception Date: June 26, 2015
• Assets Under Management: $4+ Billion
• Management Expense Ratio: 0.22%
• Investment Focus: Global developed and emerging markets ex-Canada
• Management Style: Passive
• Risk Rating: Medium-to-High
• Distributions: Quarterly
• Stock Price: $59.35
• YTD Return: +15.18%

XAW is very similar to VXC but uses a different underlying index provider. It offers diversified exposure across the U.S., Europe, Asia, and emerging markets.

Many investors use XAW as a one-ticket global ex-Canada solution.

3. BMO MSCI All Country World High Quality Index ETF

• Ticker: ZGQ.TO
• Inception Date: January 28, 2014
• Assets Under Management: $1+ Billion
• Management Expense Ratio: 0.50%
• Investment Focus: Global equities with a quality tilt
• Management Style: Passive with factor tilt
• Risk Rating: Medium-to-High
• Distributions: Quarterly
• Stock Price: $89.85
• YTD Return: +13.89%

ZGQ focuses on higher-quality global companies based on profitability and balance sheet strength. It may appeal to investors seeking a slightly more defensive growth tilt within a global strategy.

4. Vanguard All-Equity ETF Portfolio

• Ticker: VEQT.TO
• Inception Date: January 25, 2019
• Assets Under Management: $5+ Billion
• Management Expense Ratio: 0.24%
• Investment Focus: Global equities including Canada
• Management Style: Passive asset allocation
• Risk Rating: High
• Distributions: Quarterly
• Stock Price: $61.50
• YTD Return: +13.66%

VEQT provides 100% equity exposure across Canada, the U.S., and international markets in a single ETF. It is commonly used as a one-fund portfolio solution for long-term investors.

5. iShares Core Equity ETF Portfolio

• Ticker: XEQT.TO
• Inception Date: August 7, 2019
• Assets Under Management: $5+ Billion
• Management Expense Ratio: 0.20%
• Investment Focus: Global equities including Canada
• Management Style: Passive asset allocation
• Risk Rating: High
• Distributions: Quarterly
• Stock Price: $45.45
• YTD Return: +13.18%

XEQT competes directly with VEQT, offering globally diversified 100% equity exposure at a slightly lower MER.

It is often chosen by investors seeking a low-cost, hands-off global strategy.

Global ETF vs International ETF

An international ETF typically excludes the United States. A global ETF usually includes U.S. exposure along with other developed and emerging markets.

Because the U.S. represents a large share of global equity markets, global ETFs often provide more comprehensive diversification.

When Do Global ETFs Perform Best?

Global ETFs tend to perform best:

• Over long investment horizons
• During synchronized global economic growth
• When U.S. and international markets outperform Canada
• When sector diversification enhances returns

They are designed for long-term investors rather than short-term tactical traders.

How to Build a Portfolio Using Global ETFs

There are several common approaches:

• Pair VXC or XAW with a Canadian equity ETF
• Use VEQT or XEQT as a single all-in-one solution
• Adjust Canadian weighting based on personal preference
• Rebalance annually

Most long-term investors benefit from maintaining consistent global exposure.

Are Global ETFs a Good Investment?

Global ETFs are widely considered one of the most effective tools for long-term diversification.

They:

• Reduce concentration risk
• Provide exposure to global innovation
• Simplify portfolio construction

For most Canadian investors, a global ETF forms the foundation of a well-diversified equity portfolio.

How to Buy Global ETFs in Canada

Step 1: Choose an Account

• TFSA for tax-free growth
• RRSP for tax-deferred retirement savings
• Non-registered for additional capital

Step 2: Select a Brokerage

Most Canadian brokerages offer commission-free ETF trading.

Step 3: Choose the ETF

Decide between:

• Global ex-Canada exposure
• All-in-one global equity solution

Step 4: Place Your Trade

Use a market or limit order during trading hours.

Step 5: Monitor and Rebalance

Review allocation annually to maintain target weightings.

FAQ: Best global etf canada

What is the best global ETF in Canada?
VXC and XAW are popular ex-Canada options, while VEQT and XEQT provide all-in-one global exposure.

Is a global ETF better than a Canadian ETF?
Global ETFs offer broader diversification, while Canadian ETFs concentrate on domestic markets.

What is the difference between global and international ETFs?
Global ETFs typically include U.S. exposure, while international ETFs often exclude it.

Are global ETFs good for a TFSA?
Yes. They are commonly held in TFSAs for long-term tax-free growth.

Do global ETFs include emerging markets?
Most broad global ETFs include both developed and emerging markets.

Should I own both Canadian and global ETFs?
Many investors pair Canadian equity ETFs with global ex-Canada ETFs to balance home bias.

What is the cheapest global ETF in Canada?
XEQT and XAW offer competitive management fees among global ETF options.

Conclusion

Global ETFs give Canadian investors simple, diversified access to worldwide markets.

By expanding beyond domestic equities, investors can reduce concentration risk and position their portfolios for long-term global growth. For most Canadians, a global ETF forms a core building block of a well-structured investment strategy.