2 Best Diversified ETFs in Canada (June 2026)
The best diversified ETFs in Canada include VEQT.TO (~0.20% MER), XAW.TO (~0.22%), VXC.TO (~0.20%), and VGRO.TO (~0.24%). These ETFs provide broad global exposure across multiple markets and sectors, making them ideal core holdings for TFSAs, RRSPs, and long-term investment portfolios.
Diversified ETFs in Canada are designed to give investors broad exposure across multiple regions, sectors, and asset classes in a single investment. These ETFs help reduce risk by spreading investments globally rather than concentrating in one market.
ETFs like VEQT.TO and XAW.TO are popular because they provide exposure to thousands of companies across Canada, the U.S., and international markets. This makes them ideal core holdings for long-term portfolios.
In this guide, we break down the best diversified ETFs in Canada, comparing global exposure, fees, and portfolio structure.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top VEQT.TO Vanguard All-Equity ETF Portfolio | — | $13.9B | 1.26% | +13.66% | +32.33% |
XAW.TO iShares Core MSCI All Country World ex Canada Index ETF | — | $4.3B | 1.18% | +15.18% | +29.09% |
What Is an ETF?
A diversified ETF in Canada is an exchange-traded fund that spreads investments across multiple regions, sectors, and sometimes asset classes to reduce risk and improve long-term stability.
For example, VEQT.TO (~0.20% MER) offers globally diversified equity exposure in a single ETF, while XAW.TO (~0.22%) provides global exposure excluding Canada. VXC.TO (~0.20%) includes global markets including Canada, and VGRO.TO (~0.24%) adds a bond component for a more balanced approach.
These ETFs are commonly used in TFSAs, RRSPs, and long-term portfolios as core holdings due to their simplicity and broad diversification.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
Vanguard All-Equity ETF Portfolio
$61.50
+13.66% YTD
Vanguard All-Equity ETF Portfolio seeks to provide long-term capital growth by investing primarily in equity securities.
Returns
YTD
+13.66%
1Y
+32.33%
3Y
+21.53%
5Y
+13.62%
iShares Core MSCI All Country World ex Canada Index ETF
$59.35
+15.18% YTD
NA
Returns
YTD
+15.18%
1Y
+29.09%
3Y
+21.28%
5Y
+13.62%
Pros & Cons
Pros
- Broad diversification across countries and sectors
- Reduces risk compared to investing in a single market
- Simple, all-in-one solution for building a portfolio
- Low-cost exposure to global markets
Cons
- May include exposure to markets you don’t want
- Lower potential upside compared to concentrated bets
- Currency fluctuations can impact returns
- Less control over individual allocations
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 diversified ETF in Canada?
VEQT.TO is one of the best diversified ETFs because it provides global equity exposure in a single fund. XAW.TO is another strong option for investors who want global diversification excluding Canada.
Are diversified ETFs good for beginners?
Yes, diversified ETFs are ideal for beginners because they provide broad exposure in a single investment, reducing the need to manage multiple ETFs or pick individual stocks.
Should I choose an all-in-one ETF or build my own portfolio?
All-in-one ETFs like VEQT.TO are simpler and require less maintenance, while building your own portfolio with ETFs like XAW.TO can offer more customization. The choice depends on your experience and preference.