2 Best China ETFs for Canadian Investors (June 2026)
The best China ETFs in Canada include ZCH.TO (~0.28% MER) and XCH.TO (~0.28%). These ETFs provide exposure to Chinese equities, offering high growth potential but with increased risks from political factors, regulation, and market volatility compared to developed markets.
China ETFs are designed for Canadian investors seeking exposure to one of the world’s largest emerging markets. ETFs like ZCH.TO and XCH.TO provide access to Chinese equities, including major companies in technology, financials, and consumer sectors.
The key advantage of China ETFs is their potential for long-term growth driven by a large economy and global trade influence. However, these ETFs carry higher political, regulatory, and market risks compared to developed markets.
In this guide, we break down the best China ETFs for Canadian investors, comparing growth potential, diversification, and risk so you can decide how they fit into your TFSA, RRSP, or international portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top ZCH.TO BMO MSCI China Selection Equity Index ETF | — | $121M | 1.45% | -16.28% | +0.61% |
XCH.TO iShares China | — | $187M | 2.29% | -12.79% | -0.66% |
What Is an ETF?
A China ETF in Canada is an exchange-traded fund that invests in Chinese equities, providing exposure to companies listed in mainland China, Hong Kong, or through ADRs. These ETFs allow Canadian investors to participate in China’s economic growth without directly trading foreign stocks.
For example, ZCH.TO (~0.28% MER) provides broad exposure to Chinese equities, while XCH.TO (~0.28% MER) tracks a similar index with a slightly different structure. MCHI (U.S.-listed) is a widely used ETF tracking the MSCI China Index.
China ETFs are commonly used in TFSAs and RRSPs as a growth-oriented allocation. Investors should consider geopolitical risk, regulatory changes, and currency exposure when investing.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
BMO MSCI China Selection Equity Index ETF
$17.79
-16.28% YTD
The BMO China Equity Index ETF has been designed to replicate, to the extent possible, the performance of the BNY Mellon China Select ADR Index, net of expenses. The ETF will gain exposure to the broad Chinese equity market by holding a basket of American Depository Receipts. The ETF invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index.
Returns
YTD
-16.28%
1Y
+0.61%
3Y
+10.29%
5Y
-6.79%
iShares China
$22.63
-12.79% YTD
NA
Returns
YTD
-12.79%
1Y
-0.66%
3Y
+11.99%
5Y
-0.75%
Pros & Cons
Pros
- Exposure to one of the world’s largest and fastest-growing economies
- Access to major global companies in technology and consumer sectors
- Diversification into emerging markets beyond developed economies
- Potential for long-term growth driven by economic expansion
Cons
- High political and regulatory risk affecting markets
- Currency fluctuations (CNY/CAD or HKD/CAD) can impact returns
- Market volatility and government intervention can affect performance
- Concentration in certain sectors like technology and financials
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best China ETF in Canada?
ZCH.TO is one of the most widely used China ETFs in Canada due to its broad exposure to Chinese equities. XCH.TO offers a similar structure, while MCHI provides a U.S.-listed alternative tracking the MSCI China Index.
Are China ETFs risky?
Yes, China ETFs are considered higher risk due to political, regulatory, and economic uncertainties. Government intervention and market volatility can significantly impact performance compared to developed markets.
Should I invest in China ETFs for diversification?
China ETFs can provide diversification and growth potential within a global portfolio. However, they are typically used as a smaller allocation due to higher risk and uncertainty compared to developed markets.