3 Best Technology ETFs in Canada (June 2026)
The best technology ETFs in Canada include TEC.TO (~0.20% MER), XIT.TO (~0.61%), and XQQ.TO (~0.20%). These ETFs provide exposure to global and Canadian technology companies, offering strong growth potential but higher volatility, making them best suited as a satellite position within a diversified investment portfolio.
Technology ETFs are designed for Canadian investors looking to gain exposure to one of the fastest-growing sectors globally. ETFs like TEC.TO, XIT.TO, and XQQ.TO provide access to leading technology companies across software, hardware, and digital services.
The key advantage of technology ETFs is their strong long-term growth potential driven by innovation and digital transformation. However, these ETFs can be volatile, as they are heavily concentrated in high-growth stocks that are sensitive to interest rates and market sentiment.
In this guide, we break down the best technology ETFs in Canada, comparing diversification, fees, and risk so you can decide how they fit into your TFSA, RRSP, or growth-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 TEC.TO TD Global Technology Leaders Index ETF | — | $5.1B | 0.11% | +12.88% | +40.10% |
XIT.TO iShares S&P/TSX Capped Information Technology Index ETF | — | $736M | — | -6.60% | +7.48% |
XQQ.TO iShares NASDAQ 100 (CAD Hedged) | — | $5.3B | 0.23% | +13.86% | +32.15% |
What Is an ETF?
A technology ETF in Canada is an exchange-traded fund that invests in companies within the technology sector, including software, semiconductors, cloud computing, and digital services. These ETFs allow investors to gain exposure to tech-driven growth without selecting individual stocks.
For example, TEC.TO (~0.20% MER) offers diversified exposure to global technology leaders, while XIT.TO (~0.61% MER) focuses on Canadian technology companies. XQQ.TO (~0.20% MER) tracks the Nasdaq-100, providing exposure to major U.S. tech giants, and ZQQ.TO (~0.20% MER) offers a similar Nasdaq-based strategy.
Technology ETFs are commonly used in TFSAs and RRSPs for long-term growth. Investors should consider concentration risk, valuation levels, and sensitivity to interest rates when investing in the tech sector.
The 3 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
TD Global Technology Leaders Index ETF
$59.70
+12.88% YTD
NA
Returns
YTD
+12.88%
1Y
+40.10%
3Y
+31.12%
5Y
+20.37%
iShares S&P/TSX Capped Information Technology Index ETF
$72.89
-6.60% YTD
Returns
YTD
-6.60%
1Y
+7.48%
3Y
+16.95%
5Y
+9.19%
iShares NASDAQ 100 (CAD Hedged)
$70.74
+13.86% YTD
Returns
YTD
+13.86%
1Y
+32.15%
3Y
+24.16%
5Y
+14.90%
Pros & Cons
Pros
- Exposure to high-growth technology companies and innovation trends
- Strong long-term return potential driven by digital transformation
- Access to global tech leaders through ETFs like TEC.TO and XQQ.TO
- Diversification within the technology sector across industries
Cons
- High volatility due to concentration in growth stocks
- Sensitive to interest rate changes and economic cycles
- Can be heavily weighted toward a few large companies (e.g., mega-cap tech)
- Higher MERs for some specialized ETFs like XIT.TO (~0.61%)
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 technology ETF in Canada?
TEC.TO is one of the best technology ETFs in Canada due to its diversified exposure to global tech leaders and relatively low ~0.20% MER. Investors seeking Canadian tech exposure may consider XIT.TO, while XQQ.TO provides access to the Nasdaq-100.
Are technology ETFs a good investment?
Technology ETFs can offer strong long-term growth due to innovation and digital trends. However, they are more volatile than broad-market ETFs and should typically be used as part of a diversified portfolio rather than a standalone investment.
Should I hold technology ETFs long term?
Technology ETFs are often suited for long-term investors because of their growth potential. However, due to sector concentration and volatility, they are best used as a satellite allocation alongside diversified core ETFs.