Top 10 TSX ETFs in Canada 2025

ETFs are investment vehicles that bundle a diverse range of securities into a single package, trading on an exchange just like individual stocks. These funds offer key advantages, including diversification, flexibility, transparency, and cost efficiency, making them a preferred choice for investors. In Canada, ETFs provide exposure to various asset classes, from domestic equities to international markets, with many investors specifically seeking the top Canadian index ETF that tracks the TSX index for broad market exposure.

In this guide, we will analyze the 10 best ETFs in Canada for 2025, highlighting their performance and investment potential. Additionally, we will explore effective strategies for trading ETFs efficiently, helping investors optimize their portfolios and make informed decisions in the evolving market landscape. Let's get started!

Background of investing in ETFs in Canada

History and Current Status

Canada's first ETFs were launched in the late 1990s, marking a significant shift in the investment landscape. Since then, the Canadian ETF market has grown exponentially, driven by increasing investor demand for low-cost, flexible investment vehicles. According to the Investment Funds Institute of Canada (IFIC), total assets under management (AUM) of Canadian ETFs will exceed C$300 billion by 2025. This growth reflects a CAGR of nearly 20% over the past decade, indicating that the ETF industry in Canada has experienced significant growth and development. In addition, there are over 42 mutual fund companies offering ETF products in Canada, with a total of over 1,056 Canadian ETFs available to investors. Today, Canadian ETFs cover a wide range of asset classes, including equities, fixed income and commodities.

Key Trends for the Future

Looking ahead, there are several trends that are becoming more prominent in Canadian ETF investing. First, there is a growing focus on environmental, social and governance (ESG) criteria as more investors seek sustainable investment options. ETFs such as the Isares ESG Morgan Stanley Capital International Canada Index Exchange Traded Fund (XESG) are gaining traction, offering investors a way to align their portfolios with their values.

Second, thematic investing ETFs continue to attract attention, particularly those focused on emerging technologies and global megatrends. For example, Invesco Nasdaq 100 Index ETF  (QQC) plays a role in cutting-edge technology areas, while other funds target emerging areas such as artificial intelligence and blockchain technology.

In a word, as technology continues to advance and investor education evolves, the future of Canadian ETFs looks promising. Whether you're a novice or a seasoned investor, the breadth and depth of the Canadian ETF market offers unparalleled opportunities to build a diversified portfolio based on your unique investment objectives.

Top Canadian ETFs to watch 2025

Those who follow Canadian ETF investing will pay close attention to the well performing ETFs in Canada, which embody the dynamism of the Canadian market, from stable domestic markets to innovative thematic offerings. Please note that the well performing ETFs in Canada cannot be judged by a single evaluation criterion alone. Below is our handpicked list of the top 10 ETFs to watch in Canada, evaluating their overall performance and emphasizing their features, highlights and standouts.

iShares Core Equity ETF Portfolio (XEQT)

Managed by BlackRock, the world's largest ETF provider, XEQT is an aggressive all-in-one ETF that contains only stocks and no bonds. The ETF consists of more than 9,000 stocks with portfolio weightings in the U.S. (45%), Canada (25%), international developed markets (25%) and emerging markets (5%). Because XEQT consists of 100% stocks and 0 bonds, XEQT is best suited for investors who have a higher risk tolerance and can wait out market volatility for longer periods of time to achieve higher returns. It can be used in an RRSP, TFSA, or non-registered account. It has a management expense ratio ratio of 0.20% and a total return on net assets of 24.08% over three years.

• AUM: 6.71B (CAD)

• Div Yield: 2.04%

• Management fee: 0.22%

• Issuer: BlackRock

BMO Aggregate Bond Index ETF (ZAG)

ZAG holds investment grade Canadian bonds, including government securities, provincial securities and corporate fixed income securities. The fund's tracking index consists of fixed (semi-annual payments) interest rate bonds with a credit rating of BBB or above and a maturity of more than one year. Its management expense ratio (MER) is 0.09%.

• AUM: 10.04B(CAD)

• Div Yield: 3.42%

• Management fee: 0.09%

• Issuer: Bank of Montreal

Vanguard FTSE Global All Cap ex Canada Index ETF (VXC)

VXC tracks developed and emerging markets excluding Canada, providing investors with easy access to equity markets outside of Canada and the growth potential of companies in other parts of the world. The ETF uses a market capitalization weighting methodology, which means it holds component securities in the same proportion as they are in the index. VXC is up 14.9% year-to-date, providing opportunities for Canadian investors seeking international exposure.

• AUM: 2.24B(CAD)

• Div Yield: 1.47%

• Management fee: 0.22%

• Issuer: Vanguard

TD Canadian Equity Index (TTP)

In Canada, in addition to the TSX 60 Composite Index, which is a reliable benchmark for measuring "Canadian equities", the Solactive Broad Canada Index is considered an indicator of the Canadian equity market as a whole. TTP tracks this broad-based index of equities that covers the full market capitalization portion of the Canadian market. The index comprises stocks, mutual funds and REITs listed on the Toronto Stock Exchange (TSX), giving investors exposure to a very broad range of sectors and making it the most representative broad market ETF in the Canadian market.

• AUM: 2.52B(CAD)

• Div Yield: 2.58%

• Management fee: 0.16%

• Issuer: Purpose Unlimited

FTSE Canadian High Dividend Yield Index ETF (VDY)

VDY focuses on the Canadian economy and seeks to replicate the performance of the FTSE Canada High Dividend Yield Index. Qualifying securities are screened for inclusion in the FTSE Global Equity Index Series and ranked based on their projected dividend yield for each year. VDY has a dividend yield of 4.52%. It has maintained a track record of paying monthly dividends from 2017 to the present, providing investors with a steady stream of regular income.

• AUM: 3.34B(CAD)

• Div Yield: 4.59%

• Management fee: 0.23%

• Issuer: Vanguard

Purpose High Interest Savings ETF (PSA)

Unlike passive management, PSA uses an active management strategy designed to generate optimal monthly income while preserving capital and liquidity. To achieve these goals, PSA invests in high-yield deposit accounts at a number of chartered banks and credit unions in Canada. This fund contains approximately 65% cash and is a high-quality cash ETF in the Canadian market, providing investors with a small risk, high liquidity investment option.

• AUM: 3.35B(CAD)

• Div Yield: 2.56%

• Management fee: 0.06%

• Issuer: The Toronto-Dominion Bank

iShares Canadian Growth ETF (XCG)

XCG tracks the performance of the Dow Jones Canada Indexes and provides exposure to large- and mid-cap stocks of Canada's fastest-growing technology companies. Specifically, the ETF style categorises eligible securities based on six factors: price-to-book ratio, dividend yield, revenue growth, earnings growth and forward earnings growth, and forward price-to-earnings ratio, with the growth group of securities comprising XCG's portfolio. Offering investors access to Canada's fast-growing emerging technology market, XCG is a growth ETF to watch. Note, however, that while it has clear growth potential, it is riskier than dividend ETFs and cash ETFs.

• AUM: 108.85M(CAD)

• Div Yield: 0.77%

• Management fee: 0.55%

• Issuer: BlackRock

Vanguard FTSE Canada Capped REIT Index ETF (VRE)

VRE focuses on the Canadian-domiciled real estate sector, tracking the performance of the FTSE Canada All Cap Real Estate Capped 25% Index. In addition to dividend ETFs, REITs also hold weight in the minds of investors seeking fixed income, and they offer an easy and low-cost way to invest in the real estate sector.VRE offers investors exposure to the real estate sector, enjoying an expense ratio of 0.41% and a dividend yield of 2.9%.

• AUM: 265.54M(CAD)

• Div Yield: 3.03%

• Management fee: 0.41%

• Issuer: Vanguard

Purpose Bitcoin ETF (BTCC)

BTCC is the first ETF on the market to offer physical bitcoin investment opportunities and is the most popular and liquid bitcoin ETF in Canada. By purchasing this ETF, investors are holding physical bitcoins in their portfolios. It is important to note that BTCC does not speculate on short-term changes in the price of bitcoin, nor does it use derivatives for hedging purposes, but rather provides long-term capital appreciation opportunities. Bitcoin itself is a high-risk, high-volatility asset, but investors with a high risk tolerance and an interest in cryptocurrencies may consider participating in this market through an investment vehicle such as an ETF.

• AUM: 736.44M(CAD)

• Div Yield: /

• Management fee: 0.16%

• Issuer: Purpose Unlimited

Invesco Nasdaq 100 Index ETF (QQC)

QQC tracks one of the most established U.S. indices, the Nasdaq 100, which tracks the performance of non-financial stocks listed on the Nasdaq, primarily technology companies. The ETF is more concentrated in its top holdings and is more volatile than the usual large-cap benchmarks. Despite ignoring other sectors to some extent, QQC offers a popular portfolio of technology, growth and large-cap stocks. Overall, this ETF is able to satisfy the interest in the latest technology themes while avoiding the excessive concentration of risk that can result from straying from broad-based, large-cap stocks.

• AUM: 743.51M(CAD)

• Div Yield: 0.48%

• Management fee: 0.2%

• Issuer: Invesco

How to trade ETFs in Canada?

Trading ETFs in Canada is simple and accessible, especially with platforms like moomoo Canada, which offers low-commission trading and a seamless experience. Here’s a step-by-step guide to get started:

Step 1. Choose a broker: Select a reliable online broker that offers a wide range of ETFs and has a user-friendly trading platform. moomoo Canada is a great choice, offering advanced trading tools, real-time market data, and low-cost trades. It supports Canadian investors to trade U.S. ETFs and Canadian ETFs.

Step 2. Open an account: Complete the account opening process, which typically includes providing personal information and verifying your identity.

Step 3. Fund your account: Deposit funds into your brokerage account, which can be done in a variety of ways, including bank transfers or checks.

Step 4. Research and Select ETFs: Conduct thorough research on the ETFs you are interested in, taking into account factors such as historical performance, expense ratios and management style.

Step 5. Place orders: Use the brokerage platform to place orders for desired ETFs, specifying the quantity and type of order (e.g. market or limit order).

Step 6. Monitor your investments: Track the performance of your ETFs and adjust your portfolio as needed.

Top Canadian ETFs summed up

In 2025, ETF products in Canada offer diverse opportunities for investors, whether you’re looking to capitalize on the growth of the tech sector, generate steady income from real estate investment trusts, or achieve global diversification. With a variety of options available, selecting the best Canadian ETFs requires careful consideration of factors such as performance, expense ratios, and market exposure to ensure they align with your financial goals and risk tolerance.

When exploring the top 10 Canadian ETFs, understanding their benefits and trading strategies is key to making informed decisions. By leveraging the right investment approach, you can build a strong, diversified portfolio that adapts to the evolving financial markets. However, always remember that investing involves risk, and conducting thorough research is essential before starting your investment journey.