4 Best Global Dividend ETFs in Canada (July 2026)
The best global dividend ETFs in Canada include VIDY.TO (~0.22% MER), XDG.TO (~0.11%), ZDI.TO (~0.39%), and IQD-B.TO (~0.35%). These ETFs provide international diversification across dividend-paying companies but come with foreign withholding tax and currency considerations for TFSA, RRSP, or non-registered investors.
Global dividend ETFs allow Canadian investors to diversify their income beyond domestic markets and gain exposure to dividend-paying companies worldwide. ETFs like VIDY.TO provide broad global dividend exposure, while XDG.TO and ZDI.TO focus on developed markets and U.S.-heavy dividend strategies. IQD-B.TO adds a more active or factor-based approach to global income investing.
The key advantage of global dividend ETFs is diversification across regions and sectors. Unlike Canadian dividend ETFs, which are heavily concentrated in financials and energy, global ETFs include exposure to sectors like technology, healthcare, industrials, and consumer goods. However, investors must also consider currency risk and foreign withholding taxes across multiple jurisdictions.
In this guide, we break down the best global dividend ETFs in Canada, comparing yield, diversification, fees, and tax considerations so you can choose the right ETF for your TFSA, RRSP, or income-focused 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 VIDY.TO Vanguard FTSE Developed ex North America High Dividend Yield Index ETF | — | $2.0B | 2.46% | +12.52% | +31.11% |
XDG.TO iShares Core MSCI Global Quality Dividend Index ETF | — | $744M | 2.81% | +12.80% | +22.40% |
ZDI.TO BMO International Dividend Units | 0.40% | $866M | 3.06% | +11.00% | +26.02% |
IQD-B.TO CI WisdomTree International Quality Dividend Growth Index ETF | — | $397M | 3.32% | +7.57% | — |
What Is an ETF?
A global dividend ETF in Canada is an exchange-traded fund that invests in dividend-paying companies across multiple countries and regions. These ETFs provide exposure to international markets such as the U.S., Europe, and Asia, allowing investors to diversify income sources beyond Canada.
For example, VIDY.TO (~0.22% MER) offers broad global dividend exposure across developed markets, while XDG.TO (~0.11% MER) focuses on U.S. dividend growers. ZDI.TO (~0.39% MER) provides diversified exposure to global dividend-paying companies outside Canada, and IQD-B.TO (~0.35% MER) applies a more selective or factor-based strategy to global income investing.
Global dividend ETFs are commonly used in TFSAs and RRSPs for diversification and income. However, since they hold international stocks, investors face multiple layers of foreign withholding tax, and returns can be affected by currency fluctuations depending on whether the ETF is CAD-hedged or unhedged.
The 4 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
Vanguard FTSE Developed ex North America High Dividend Yield Index ETF
$46.64
+12.52% YTD
NA
Returns
YTD
+12.52%
1Y
+31.11%
3Y
+24.41%
5Y
+16.10%
iShares Core MSCI Global Quality Dividend Index ETF
$33.83
+12.80% YTD
NA
Returns
YTD
+12.80%
1Y
+22.40%
3Y
+16.54%
5Y
+11.76%
BMO International Dividend Units
$32.30
+11.00% YTD
Returns
YTD
+11.00%
1Y
+26.02%
3Y
+18.67%
5Y
+13.55%
CI WisdomTree International Quality Dividend Growth Index ETF
$36.53
+7.57% YTD
Pros & Cons
Pros
- Diversification across global markets including the U.S., Europe, and Asia
- Reduced reliance on Canadian sectors like financials and energy
- Exposure to a wider range of dividend-paying industries such as technology and healthcare
- Access to both high-yield and dividend growth strategies through ETFs like ZDI.TO and XDG.TO
Cons
- Multiple layers of foreign withholding tax across different countries
- Currency fluctuations can significantly impact returns (unhedged exposure)
- Some global ETFs have higher MERs than domestic dividend ETFs
- Dividend yields may be lower than Canadian-focused income ETFs
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 global dividend ETF in Canada?
VIDY.TO is a strong option for global dividend exposure with a low ~0.22% MER and diversified holdings across developed markets. Investors looking for a more targeted approach may consider ZDI.TO (~0.39% MER) or XDG.TO (~0.11% MER) depending on whether they prefer global income or U.S. dividend growth.
What’s the difference between global and Canadian dividend ETFs?
Global dividend ETFs like VIDY.TO and ZDI.TO invest across multiple countries and sectors, while Canadian dividend ETFs like VDY.TO focus mainly on domestic companies. Global ETFs offer better diversification but introduce currency risk and foreign withholding taxes, whereas Canadian ETFs are simpler and often more tax-efficient.
Are global dividend ETFs good for a TFSA?
Global dividend ETFs can be held in a TFSA, but investors should be aware of foreign withholding taxes on international dividends, which are not recoverable. Despite this, they are still useful for diversification and long-term growth when combined with Canadian dividend ETFs.