2 Best TSX ETFs in Canada (June 2026)
The best TSX ETFs in Canada include XIC.TO (~0.06% MER) and VCN.TO (~0.06%). These funds track the Canadian stock market and provide broad exposure to major sectors like banks, energy, and materials, making them a core building block for the Canadian portion of a diversified ETF portfolio.
TSX ETFs are the easiest way for Canadians to invest in the domestic stock market, giving exposure to major sectors like financials, energy, and materials.
However, the TSX is more concentrated than global markets, so understanding its structure is key before investing.
Below are the best options for best tsx 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 XIC.TO iShares Core S&P/TSX Capped Composite | — | $30.3B | 2.02% | +10.28% | +34.42% |
VCN.TO Vanguard FTSE Canada All Cap | — | $16.2B | 2.01% | +9.48% | +33.38% |
What Is an ETF?
A TSX ETF in Canada tracks a broad Canadian equity index like the S&P/TSX Composite or S&P/TSX 60, providing exposure to the largest publicly traded companies in the country.
For example, XIC.TO (~0.06% MER) tracks the S&P/TSX Composite Index with exposure to over 200 Canadian companies, while VCN.TO (~0.06%) offers similar broad-market coverage at a low cost. Alternatives like ZCN.TO (~0.06%) and XIU.TO (~0.18%) provide slightly different index exposures, with XIU.TO focusing on the largest 60 companies.
Because the TSX is heavily weighted toward financials, energy, and materials, TSX ETFs are often used as the Canadian equity portion of a globally diversified portfolio rather than a complete portfolio on their own.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
iShares Core S&P/TSX Capped Composite
$56.09
+10.28% YTD
Returns
YTD
+10.28%
1Y
+34.42%
3Y
+24.00%
5Y
+14.88%
Vanguard FTSE Canada All Cap
$71.01
+9.48% YTD
Vanguard FTSE Canada All Cap Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad Canadian equity index that measures the investment return of large-, mid- and small-capitalization, publicly traded securities in the Canadian market. Currently, this Vanguard ETF seeks to track the FTSE Canada All Cap Domestic Index (or any successor thereto). It invests primarily in large-, mid- and small-capitalization Canadian stocks.
Returns
YTD
+9.48%
1Y
+33.38%
3Y
+24.00%
5Y
+14.96%
Pros & Cons
Pros
- Low-cost exposure to the Canadian stock market
- Strong dividend yield compared to many global markets
- Simple way to access major Canadian companies
- Eligible for TFSA, RRSP, and non-registered accounts
Cons
- Heavy concentration in financials, energy, and materials
- Limited exposure to technology and growth sectors
- Not fully diversified globally (Canada home bias)
- Can underperform global markets during certain cycles
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 TSX ETF in Canada?
XIC.TO and VCN.TO are among the best TSX ETFs in Canada due to their low fees and broad exposure to the Canadian stock market. Both track the S&P/TSX Composite Index and are widely used as core Canadian equity holdings.
Are TSX ETFs well diversified?
They provide good diversification within Canada, but the TSX is concentrated in a few sectors like financials and energy. Most investors pair TSX ETFs with U.S. and international ETFs to improve overall diversification.
Should I only invest in TSX ETFs?
For most investors, no. While TSX ETFs are useful for Canadian exposure, relying only on them can lead to home bias. A balanced portfolio usually includes global ETFs alongside Canadian holdings.