The iShares Core S&P/TSX Capped Composite Index ETF (XIC) is the most widely held ETF that tracks the TSX, providing broad exposure to the Canadian equity market as of 2026.
What ETF tracks the TSX?
The iShares Core S&P/TSX Capped Composite Index ETF (XIC) is the primary ETF that tracks the TSX, representing roughly 95% of the investable Canadian equity market.
XIC charges just 0.06% in management fees and holds over 240 Canadian stocks—think Royal Bank and TD Bank among its top holdings. Two close competitors, BMO’s ZCN and Vanguard’s VCN, also charge 0.06% and cover similar ground. Want U.S. exposure without currency risk? Vanguard’s VFV tracks the S&P 500 but hedges back to Canadian dollars.
What is the best ETF to buy right now in Canada?
As of mid-2026, the iShares Core S&P/TSX Capped Composite Index ETF (XIC) and Vanguard FTSE Canada All Cap ETF (VCN) remain top choices for core Canadian equity exposure.
Both keep fees at 0.06% and spread your money across hundreds of companies. If you’re chasing growth, the tech-focused iShares S&P/TSX Capped Information Technology Index ETF (XIT) is worth a look. For global reach beyond North America, Vanguard’s VIU offers developed-market exposure for 0.18%. Pick what matches your risk appetite and how long you plan to stay invested.
How do I choose an ETF in Canada?
Start with the management expense ratio (MER)—every 0.10% saved is an extra $10 per $10,000 each year.
Next, peek under the hood: make sure the ETF’s holdings and sector mix fit your goals. Liquidity matters too—ETFs trading 50,000+ shares daily usually have tighter spreads and lower trading costs. Finally, decide between Canadian- and U.S.-listed ETFs; the latter can trigger foreign withholding taxes on dividends unless you hold them in a registered account.
What were the best ETFs in 2021?
Those ETFs still matter in 2026, though market winds have shifted since 2021—tech ETFs soared after 2020, then wobbled in 2022.
Back then, Vanguard’s VOO and VEA anchored many portfolios for broad U.S. and international exposure. Income investors gravitated toward VIG and DVY, while BND offered solid fixed-income coverage. Times change, so double-check today’s lineup before you buy.
Do ETFs pay dividends?
Yes—if the companies inside the ETF pay dividends, the ETF usually passes them to you every quarter.
For example, CDZ hunts for Canadian firms with long dividend-growth streaks. In non-registered accounts, Canadian dividends get a tax break thanks to the dividend tax credit. Reinvesting those payments (DRIP) quietly compounds your returns over time.
Are ETFs safe?
ETFs are safer than single stocks because they spread risk across many companies at once.
Broad index ETFs like those mirroring the S&P 500 or TSX cushion you from blow-ups in any one stock. That said, sector ETFs (think oil or tech) and leveraged/inverse products can still swing hard. They’re not risk-free, but low-cost indexing with proper diversification is about as safe as it gets for most investors.
Is YOLO ETF a good buy?
The YOLO ETF is a high-octane bet on U.S. and Canadian cannabis stocks, so it’s only for risk-tolerant traders.
Top holdings often include Canopy Growth, a stock that’s seen wild swings. By 2026, the cannabis sector still faces regulatory hurdles and profit questions. If you want something steadier, Vanguard’s VUSA gives you broad U.S. exposure, while ICLN offers a clean-energy angle. Treat YOLO like a short-term punt, not a core holding.
Are ETFs safer than stocks?
ETFs are generally safer thanks to instant diversification, but they aren’t bulletproof—niche or leveraged ETFs can still lose value.
An S&P 500 ETF smooths out the bumps from any single company’s bad news. Yet if you buy a narrow ETF such as CGW, you’re all-in on water-sector risks. Stocks can deliver bigger wins—or bigger losses. ETFs are perfect for set-and-forget investors; stocks may appeal to active traders with deep sector expertise.
How many ETFs should I own?
Most investors do fine with 5 to 10 ETFs to cover Canadian, U.S., international, emerging markets, bonds, and real estate.
A balanced mix might look like: XIC for Canada, VFV for the U.S., VIU for developed markets outside North America, XAW for emerging markets, ZAG for bonds, and XRE for real estate. Hold too many—say 20—and you dilute returns without meaningfully lowering risk. Adjust the count to match your goals and comfort with risk.
Is there a Canadian bank ETF?
The RBC Canadian Bank Yield Index ETF (RBNK) is the go-to ETF for Canadian bank exposure, focusing on major banks with a focus on dividend yield.
RBNK’s top positions include Royal Bank, TD Bank, and Bank of Nova Scotia, and it charges 0.40%. ZEB from BMO gives equal weight to the same banks for 0.61%. You can also look at XFN from iShares, which casts a wider net to include insurance and diversified financials. Bank ETFs are great for dividend hunters, but they carry sector-specific risk.
How do I choose an ETF?
First, check assets under management—aim for at least $50 million to be sure the ETF is viable, then compare its MER and daily trading volume.
Dig into the holdings next; you don’t want an “emerging markets” ETF that’s really just China and Taiwan. The Canadian Securities Administrators’ securities regulators database is a handy place to confirm registration and pull disclosure docs. Finally, ask how the ETF fits your bigger portfolio plan.
What ETF pays the highest dividend?
The iShares Canadian Select Dividend Index ETF (XDV) has historically delivered some of the juiciest yields among Canadian ETFs, typically landing between 4% and 6% per year.
XDV zeroes in on high-quality Canadian firms with a track record of growing dividends, including BCE and Enbridge. Other strong contenders are BMO’s ZDV and Vanguard’s VDY. Dividend ETFs score well on taxes in non-registered accounts thanks to the dividend tax credit, though yields can rise and fall with the market.
What is the most aggressive ETF?
The iShares Core Aggressive Allocation ETF (AOA) is the biggest and most liquid aggressive ETF, with 60% in equities and a 0.25% fee.
AOA spreads its bets across global stocks, bonds, and alternatives, giving you a one-ticket growth solution. For even wilder swings, ARKK or BOTZ target disruptive tech and robotics. Aggressive ETFs can rocket—or crater—so they’re best for investors with a high risk tolerance and a long runway.
Which Vanguard ETF has the highest return?
The Vanguard Information Technology ETF (VGT) has been a standout performer in 2026, riding the continued tech rally.
VGT loads up on U.S. giants like Apple, Microsoft, and NVIDIA while charging just 0.10%. Over the past year it’s beaten broader ETFs such as VTI by more than 15 percentage points. If you want even more punch, VIOG hunts small-cap growth stocks. Always check 3- to 5-year trends to see if the hot streak lasts.
Are ETFs better than stocks?
ETFs are usually the smarter pick for passive investors who want diversification and lower risk, while stocks can reward active traders with deep knowledge.
ETFs spare you the hassle of picking individual companies and cut trading costs. They’re also tax-efficient. Stocks let you tilt heavily toward your best ideas—imagine holding 10% of your portfolio in a single high-conviction stock versus a broad ETF slice. Use ETFs for the foundation and stocks for targeted bets.
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