4 Best ETFs in Canada: A Complete Guide (June 2026)
The best ETFs in Canada include VEQT.TO (100% equity, ~0.24% MER), XEQT.TO (~0.20%), VGRO.TO (80/20 portfolio, ~0.25%), and XGRO.TO (~0.20%). These all-in-one ETFs provide global diversification, automatic rebalancing, and are ideal for TFSA or RRSP investors seeking a simple, low-cost core portfolio.
With Canadian investors continuing to shift toward low-cost, all-in-one investing, asset allocation ETFs like VEQT.TO and VGRO.TO have become some of the most widely used portfolio solutions on the TSX. These funds bundle global equities and bonds into a single ETF, typically charging around 0.20%–0.25% MER — a fraction of the cost of traditional mutual funds.
However, the “best ETF in Canada” depends on your risk tolerance and investment horizon. VEQT.TO and XEQT.TO offer 100% equity exposure for maximum long-term growth, while VGRO.TO and XGRO.TO include roughly 20% bonds to reduce volatility and smooth returns during market downturns.
This guide breaks down the top ETFs available to Canadians today, comparing asset allocation, fees, and performance so you can choose the right core 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% | +13.60% | +32.33% |
XEQT.TO iShares Core Equity Portfolio | — | $19.0B | 1.49% | +13.15% | +29.48% |
VGRO.TO Vanguard Growth Portfolio | — | $10.3B | 1.72% | +10.85% | +24.75% |
XGRO.TO iShares Core Growth ETF Portfolio | — | $4.9B | 1.77% | +10.73% | +24.06% |
What Is an ETF?
A core ETF in Canada is an all-in-one portfolio ETF or broad-market fund designed to serve as the foundation of an investment portfolio. These ETFs combine exposure to Canadian, U.S., and international stocks — and sometimes bonds — into a single fund, allowing investors to achieve instant diversification.
For example, VEQT.TO and XEQT.TO are all-equity ETFs holding thousands of global stocks, while VGRO.TO and XGRO.TO include a fixed allocation to bonds (typically 20%) to reduce volatility. These ETFs automatically rebalance their holdings, maintaining their target asset mix without requiring investor intervention.
Core ETFs are commonly used in TFSAs and RRSPs because they simplify portfolio management, reduce costs, and eliminate the need to manage multiple ETFs. They are especially useful for investors who want a long-term, hands-off investing approach.
The 4 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
Vanguard All-Equity ETF Portfolio
$61.47
+13.60% YTD
Vanguard All-Equity ETF Portfolio seeks to provide long-term capital growth by investing primarily in equity securities.
Returns
YTD
+13.60%
1Y
+32.33%
3Y
+21.53%
5Y
+13.62%
iShares Core Equity Portfolio
$45.44
+13.15% 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
+13.15%
1Y
+29.48%
3Y
+21.97%
5Y
+13.83%
Vanguard Growth Portfolio
$47.82
+10.85% YTD
Seeks to achieve its investment objective by primarily investing in equity and fixed income securities. It may do so either directly or indirectly through investment in one or more exchange traded funds managed by the manager or an affiliate or certain other investment funds.
Returns
YTD
+10.85%
1Y
+24.75%
3Y
+18.41%
5Y
+11.02%
iShares Core Growth ETF Portfolio
$38.79
+10.73% YTD
NA
Returns
YTD
+10.73%
1Y
+24.06%
3Y
+18.42%
5Y
+11.18%
Pros & Cons
Pros
- All-in-one diversification across global equities and bonds in a single ETF
- Low management fees (typically ~0.20%–0.25% MER) compared to mutual funds
- Automatic rebalancing keeps your portfolio aligned with its target allocation
- Simple portfolio structure — one ETF can replace a full multi-fund portfolio
Cons
- Limited customization — you must switch ETFs to change asset allocation
- Bond exposure in VGRO.TO and XGRO.TO can reduce long-term returns
- Slightly higher MER than building a DIY ETF portfolio (~0.05%–0.10%)
- Foreign withholding tax applies on international dividends within the fund
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
Should I choose an all-in-one ETF or build my own ETF portfolio in Canada?
All-in-one ETFs like VEQT.TO, XEQT.TO, and VGRO.TO are ideal for simplicity, offering global diversification and automatic rebalancing for around 0.20%–0.25% MER. Building your own portfolio using individual ETFs can lower fees to ~0.05%–0.10%, but requires ongoing rebalancing and more management. Most investors prefer all-in-one ETFs for convenience.
What’s the difference between VEQT.TO and VGRO.TO?
VEQT.TO is a 100% equity ETF designed for maximum growth, while VGRO.TO holds approximately 80% equities and 20% bonds to reduce volatility. VGRO.TO typically experiences smaller drawdowns during market declines, while VEQT.TO offers higher long-term return potential. The choice depends on your risk tolerance and time horizon.
Are all-in-one ETFs like XEQT.TO and XGRO.TO good for a TFSA?
Yes, ETFs like XEQT.TO and XGRO.TO are excellent choices for a TFSA because they provide diversified, long-term growth with minimal management. Gains and withdrawals are tax-free, although international dividends inside the ETF may still face foreign withholding tax. For most investors, these ETFs are ideal as a core TFSA holding.