4 Best Canadian Equity ETFs for Growth (June 2026)
The best Canadian equity ETFs include VEQT.TO (~0.24% MER) and XEQT.TO (~0.20%) for global diversification, plus VFV.TO (~0.06%) and ZSP.TO (~0.09%) for S&P 500 exposure. These 100% equity ETFs offer strong long-term growth and are commonly held in TFSA or RRSP accounts for tax-efficient investing.
For Canadian investors focused on long-term growth, equity ETFs remain one of the most effective ways to build wealth. All-equity ETFs like VEQT.TO and XEQT.TO provide exposure to thousands of global stocks, while U.S.-focused ETFs like VFV.TO and ZSP.TO allow investors to tap into the strong performance of the S&P 500.
However, not all equity ETFs are built the same. VEQT.TO and XEQT.TO offer global diversification across multiple regions, while VFV.TO and ZSP.TO concentrate heavily on U.S. large-cap stocks. The trade-off is between diversification and performance — U.S. equities have historically outperformed, but global exposure can reduce risk.
In this guide, we break down the best Canadian equity ETFs for growth, comparing diversification, fees, and risk so you can choose the right ETF for your TFSA, RRSP, or long-term investment strategy.
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% | +11.64% | +32.33% |
XEQT.TO iShares Core Equity Portfolio | — | $19.0B | 1.49% | +11.25% | +29.48% |
ZSP.TO BMO S&P 500 | — | $23.9B | 0.75% | +10.51% | +27.62% |
VFV.TO Vanguard S&P 500 Index ETF | — | $33.1B | 0.84% | +10.47% | +27.55% |
What Is an ETF?
A Canadian equity ETF is an exchange-traded fund that invests primarily in stocks, either within Canada or globally, with the goal of long-term capital growth. Unlike balanced ETFs, these funds typically have little to no bond exposure, making them more volatile but better suited for maximizing returns over time.
For example, VEQT.TO and XEQT.TO are all-equity ETFs that provide global diversification across Canada, the U.S., and international markets, with MERs around 0.20%–0.24%. In contrast, VFV.TO and ZSP.TO focus specifically on the S&P 500, offering low-cost exposure (~0.06%–0.09% MER) to leading U.S. companies.
These ETFs are commonly used in TFSAs and RRSPs for growth-focused portfolios. Many are unhedged to CAD, meaning returns are also influenced by USD/CAD exchange rates, which can boost or reduce performance depending on currency movements.
The 4 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
Vanguard All-Equity ETF Portfolio
$60.41
+11.64% YTD
Vanguard All-Equity ETF Portfolio seeks to provide long-term capital growth by investing primarily in equity securities.
Returns
YTD
+11.64%
1Y
+32.33%
3Y
+21.53%
5Y
+13.62%
iShares Core Equity Portfolio
$44.68
+11.25% YTD
The Fund seeks to provide long-term capital growth by investing primarily in one or more exchange-traded funds managed by BlackRock Canada or an affiliate that provide exposure to equity securities.
Returns
YTD
+11.25%
1Y
+29.48%
3Y
+21.97%
5Y
+13.83%
BMO S&P 500
$113.92
+10.51% YTD
Returns
YTD
+10.51%
1Y
+27.62%
3Y
+22.77%
5Y
+16.33%
Vanguard S&P 500 Index ETF
$184.57
+10.47% YTD
Vanguard S&P 500 Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad U.S. equity index that measures the investment return of large-capitalization U.S. stocks. Currently, this Vanguard ETF seeks to track the S&P 500 Index (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies.
Returns
YTD
+10.47%
1Y
+27.55%
3Y
+22.75%
5Y
+16.32%
Pros & Cons
Pros
- High long-term growth potential with 100% equity exposure
- Global diversification available through VEQT.TO and XEQT.TO
- Very low MERs (VFV.TO ~0.06%, ZSP.TO ~0.09%)
- Strong historical performance from U.S. equity exposure
Cons
- Higher volatility compared to balanced or bond ETFs
- U.S.-focused ETFs like VFV.TO and ZSP.TO lack global diversification
- Returns can be impacted by currency fluctuations (unhedged USD exposure)
- No downside protection during market downturns
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 equity ETF in Canada for long-term growth?
For long-term growth, VEQT.TO and XEQT.TO are popular choices because they provide global equity exposure with MERs around 0.20%–0.24%. Investors looking for higher concentration in U.S. markets may prefer VFV.TO (~0.06% MER) or ZSP.TO (~0.09%), which track the S&P 500 and have historically delivered strong returns.
What’s the difference between VEQT.TO and VFV.TO?
VEQT.TO is a globally diversified equity ETF holding stocks across Canada, the U.S., and international markets, while VFV.TO focuses solely on the S&P 500. VEQT.TO reduces risk through diversification, while VFV.TO offers higher exposure to U.S. large-cap growth stocks, which have historically outperformed but can increase concentration risk.
Are Canadian equity ETFs good for a TFSA?
Yes, equity ETFs like VEQT.TO, XEQT.TO, and VFV.TO are commonly used in TFSAs because they offer strong long-term growth with tax-free capital gains. However, since many hold U.S. stocks and are typically unhedged to CAD, dividends may be subject to foreign withholding tax and returns can be affected by currency fluctuations.