2 Best Russell 2000 ETFs in Canada (June 2026)
The best Russell 2000 ETFs in Canada include XSU.TO (~0.06% MER) and ZSU.TO (~0.06%). These ETFs track U.S. small-cap stocks, providing exposure to approximately 2,000 smaller companies and offering diversification beyond large-cap indexes like the S&P 500.
Russell 2000 ETFs give Canadians exposure to U.S. small-cap stocks, which are often overlooked compared to large-cap indexes like the S&P 500.
These companies can offer higher growth potential — but also come with higher volatility.
Below are the best options for best russell 2000 etf canada and how they fit into a diversified 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 XSU.TO iShares US Small Cap (CAD Hedged) | — | $741M | 0.73% | +18.91% | +36.03% |
Top XSU.TO iShares US Small Cap (CAD Hedged) | — | $741M | 0.73% | +18.91% | +36.03% |
What Is an ETF?
A Russell 2000 ETF tracks an index of approximately 2,000 small-cap U.S. companies, providing exposure to smaller businesses across sectors like industrials, healthcare, and consumer discretionary.
For example, XSU.TO (~0.06% MER) tracks the Russell 2000 Index and offers Canadian-listed access to U.S. small-cap stocks. ZSU.TO (~0.06%) provides similar exposure with slightly different structure and provider. U.S.-listed options like VTWO (~0.10%) may offer even lower costs for investors holding USD.
Because small-cap stocks behave differently from large-cap indexes, Russell 2000 ETFs are often used as a diversification tool alongside S&P 500 or total market ETFs.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
iShares US Small Cap (CAD Hedged)
$56.08
+18.91% YTD
Returns
YTD
+18.91%
1Y
+36.03%
3Y
+15.44%
5Y
+4.32%
iShares US Small Cap (CAD Hedged)
$56.08
+18.91% YTD
Returns
YTD
+18.91%
1Y
+36.03%
3Y
+15.44%
5Y
+4.32%
Pros & Cons
Pros
- Exposure to U.S. small-cap companies with higher growth potential
- Diversifies beyond large-cap heavy indexes like the S&P 500
- Broad exposure across thousands of smaller businesses
- Can outperform during strong economic expansion cycles
Cons
- Higher volatility compared to large-cap ETFs
- Smaller companies may be more sensitive to economic downturns
- Lower dividend yield than large-cap ETFs
- Currency exposure adds additional variability for Canadian investors
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 Russell 2000 ETF in Canada?
XSU.TO is one of the most popular Russell 2000 ETFs in Canada due to its low fees and direct exposure to U.S. small-cap stocks. ZSU.TO is another comparable option with similar index tracking.
Are Russell 2000 ETFs riskier than S&P 500 ETFs?
Yes. Russell 2000 ETFs focus on smaller companies, which tend to be more volatile and sensitive to economic conditions compared to large-cap stocks in the S&P 500.
Should I include small-cap ETFs in my portfolio?
Many investors include small-cap ETFs as a small portion of their portfolio to improve diversification and growth potential, typically alongside large-cap and international ETFs.