4 Best-Performing ETFs in Canada by Returns (June 2026)

The best-performing ETFs in Canada include XQQ.TO (Nasdaq-100, ~0.20% MER), ZSP.TO (S&P 500, ~0.09%), TEC.TO (global tech, ~0.35%), and HQU.TO (2x leveraged Nasdaq ETF). These ETFs have delivered strong returns but carry higher volatility, making them better suited for growth-focused TFSA or RRSP portfolios.

Updated June 20264 ETFs ReviewedRisk: Medium-HighGrowth

When investors search for the best-performing ETFs in Canada, they’re usually looking at funds that have delivered strong returns over recent years — often driven by exposure to high-growth sectors like technology and U.S. equities. ETFs like XQQ.TO and TEC.TO have benefited from the dominance of large-cap tech companies, while ZSP.TO tracks the S&P 500, one of the best-performing indices globally.

However, high performance often comes with higher risk. Leveraged ETFs like HQU.TO can amplify returns during bull markets, but also magnify losses during downturns. Even non-leveraged ETFs like XQQ.TO can be more volatile due to their heavy concentration in a single sector.

In this guide, we break down the best-performing ETFs in Canada, comparing returns, risk levels, and fees so you can decide which ETFs fit your TFSA, RRSP, or long-term growth strategy.

At a Glance: Quick Comparison

Side-by-side snapshot of fees, yield, and returns. Data updates daily.

ETFMERAUMYieldYTD1Y
Top
XQQ.TO

iShares NASDAQ 100 (CAD Hedged)

$5.4B0.21%+16.35%+32.80%
ZSP.TO

BMO S&P 500

$23.9B0.75%+10.51%+27.62%
TEC.TO

TD Global Technology Leaders Index ETF

$4.8B0.10%+13.03%+33.18%
HQU.TO

BetaPro NASDAQ-100® 2x Daily Bull ETF

$493M-6.69%+64.98%

What Is an ETF?

A best-performing ETF in Canada typically refers to funds that have delivered strong historical returns, often by concentrating on high-growth sectors or markets. These ETFs usually track indices like the Nasdaq-100 or S&P 500, which have outperformed broader markets in recent years.

For example, XQQ.TO tracks the Nasdaq-100 with an MER around 0.20%, giving exposure to major tech companies like Apple, Microsoft, and Nvidia. TEC.TO offers a broader global technology basket with an MER of ~0.35%, while ZSP.TO tracks the S&P 500 at a low cost (~0.09% MER). HQU.TO is a leveraged ETF that aims to deliver 2x the daily return of the Nasdaq-100, significantly increasing both potential gains and losses.

These ETFs are commonly used in TFSAs and RRSPs for growth-focused portfolios, but they are less diversified than all-in-one ETFs and may experience higher volatility. Investors typically use them to boost returns rather than as a complete portfolio solution.

The 4 Best ETFs: Ranked & Reviewed

Detailed breakdown of each pick with live data.

1
Top PickXQQ.TO

iShares NASDAQ 100 (CAD Hedged)

$72.29

+16.35% YTD

AUM$5.4B
Yield0.21%
Holdings10
FrequencyHalf-yearly

Returns

YTD

+16.35%

1Y

+32.80%

3Y

+24.46%

5Y

+15.01%

Tracks: Morningstar US Market TR CADCategory: US Equity
View Full Analysis: XQQ
2
ZSP.TO

BMO S&P 500

$113.92

+10.51% YTD

AUM$23.9B
Yield0.75%
Holdings10
FrequencyQuarterly

Returns

YTD

+10.51%

1Y

+27.62%

3Y

+22.77%

5Y

+16.33%

Tracks: Morningstar US Market TR CADCategory: US Equity
View Full Analysis: ZSP
3
TEC.TO

TD Global Technology Leaders Index ETF

$59.78

+13.03% YTD

NA

AUM$4.8B
Yield0.10%
Holdings10
FrequencyQuarterly

Returns

YTD

+13.03%

1Y

+33.18%

3Y

+28.77%

5Y

+18.75%

Tracks: Morningstar Global Markets GR CADCategory: Sector Equity
View Full Analysis: TEC
4
HQU.TO

BetaPro NASDAQ-100® 2x Daily Bull ETF

$26.62

-6.69% YTD

AUM$493M
Holdings1
FrequencyNA

Returns

YTD

-6.69%

1Y

+64.98%

3Y

+41.99%

5Y

+20.46%

Tracks: Morningstar CAD O/N Cash GR CADCategory: Passive Inverse/Leveraged
View Full Analysis: HQU

Pros & Cons

Pros

  • Strong historical returns driven by high-growth sectors like technology and U.S. equities
  • Exposure to leading companies through ETFs like XQQ.TO and ZSP.TO
  • Low MER options available (ZSP.TO ~0.09%, XQQ.TO ~0.20%)
  • Potential to outperform broad-market ETFs in bull markets

Cons

  • Higher volatility due to sector concentration (especially tech-heavy ETFs)
  • Leveraged ETFs like HQU.TO significantly increase downside risk
  • Not suitable as a standalone portfolio due to limited diversification
  • Performance can reverse quickly during market downturns

Compare These ETFs Head-to-Head

Drill into a side-by-side breakdown of performance, AUM, and yield.

Best next ETF step

Keep comparing ETFs

These are good next reads if you want a broader shortlist, Canadian index exposure, or a faster way to compare funds.

Frequently Asked Questions

What is the best-performing ETF in Canada over the long term?

ETFs tracking U.S. equities and technology have historically delivered the strongest returns. XQQ.TO (Nasdaq-100, ~0.20% MER) and ZSP.TO (S&P 500, ~0.09%) are among the top performers due to exposure to large-cap growth stocks. However, past performance does not guarantee future returns, and these ETFs can be more volatile.

Are leveraged ETFs like HQU.TO a good way to boost returns?

HQU.TO aims to deliver 2x the daily return of the Nasdaq-100, which can significantly boost gains in strong markets. However, it also amplifies losses and is subject to compounding effects over time, making it unsuitable for long-term holding. Leveraged ETFs are generally better suited for short-term trading rather than core investing.

Can I hold high-performing ETFs like XQQ.TO in a TFSA?

Yes, ETFs like XQQ.TO and TEC.TO are commonly held in TFSAs because they offer strong growth potential and tax-free capital gains. However, since they hold U.S. stocks, dividends may be subject to foreign withholding tax. Despite this, many investors still use them as growth-focused holdings within a TFSA.

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