A Canadian ETF is an exchange-traded fund listed on the TSX (or Cboe Canada). For most retail investors, the right portfolio in 2026 is one to four broad-market ETFs covering Canadian, US, international developed, and emerging markets — with bond exposure layered in as risk tolerance dictates. This guide picks 12 ETFs across 5 categories that together cover essentially every diversified Canadian portfolio.

For deeper drill-downs by category, see our Canadian ETF screener, which has dedicated pages for S&P 500, dividend, bond, gold, Bitcoin, bank, REIT, and Vanguard ETFs.

How we picked these 12

• Canadian-listed only (TSX or Cboe Canada). US-listed ETFs add tax friction outside an RRSP.
• MER under 0.30% for broad index ETFs.
• AUM at least $1B — ensures tight bid/ask spreads and low closure risk.
• Tracks a recognized index from FTSE, S&P, MSCI, or Bloomberg — no actively-managed wrappers.

The 12 ETFs at a glance

All-in-one ETFs — the easiest portfolio

If you only ever buy one ETF for the rest of your life, make it one of these. Each is a complete globally diversified portfolio in a single ticker.

• XEQT (0.20% MER) — 100% global equity. Best for 30+ year horizons.
• VEQT (0.24% MER) — Vanguard's all-equity equivalent.
• VGRO (0.24% MER) — 80% equity, 20% bonds. Most-popular middle ground.
• VBAL (0.24% MER) — 60% equity, 40% bonds. Lower volatility for shorter horizons.

S&P 500 exposure — the single most-bought tickers

VFV (0.09% MER) is the dominant Canadian-listed S&P 500 ETF and one of the largest single ETF holdings in Canadian retail portfolios. XSP (0.10% MER) is the currency-hedged sibling. The choice between them is a long-running debate: hedging adds slippage but protects against a strengthening loonie, while unhedged tracks the underlying US index more accurately. Most long-term investors choose unhedged.

Canadian-equity exposure

VCN (0.05% MER) is the broadest cheap option — over 180 Canadian companies. XIU (0.18% MER) is the original ETF (launched in 1990, the world's first ETF) and tracks the 60 largest TSX names. VCN is a better core holding; XIU is the choice for traders who want the most-liquid Canadian ETF.

Income — Canadian dividend ETFs

VDY (0.20% MER) targets a ~4% yield from high-dividend Canadian companies (banks, pipelines, telecom, utilities). Dividend distributions qualify for the dividend tax credit when held outside an RRSP, which makes VDY tax-efficient in a TFSA or non-registered account.

Bonds — for those who want lower volatility

ZAG (0.09% MER) is the broadest Canadian aggregate bond ETF — government plus investment-grade corporate, weighted by issuance. Yield-to-maturity sits around the prevailing 5-year GoC rate. Pair with VFV/VCN/VIU to build a 60/40 or 80/20 portfolio without using an all-in-one wrapper.

International diversification

VIU covers developed markets outside North America (Europe, Japan, Australia). VEE covers emerging markets. Together they round out the third and fourth legs of a classic four-fund portfolio: VCN + VFV + VIU + VEE.

Three sample portfolios

The "I just want to be done" portfolio

• 100% XEQT (or 100% VEQT)

That's it. Globally diversified, rebalanced automatically, ~0.20% MER total.

The classic three-fund portfolio

• 30% VCN (Canada)
• 40% VFV (US)
• 30% VIU (international developed)

Slightly cheaper than XEQT (~0.10% blended MER) and lets you tilt the home-country bias up or down.

The 80/20 with bonds

• 25% VCN, 35% VFV, 20% VIU, 20% ZAG
• OR just buy VGRO and skip the rebalancing math

Where to buy these

Any Canadian brokerage. Commission-free options include Wealthsimple Self-Directed, Questrade (ETF buys are free), and Qtrade (100+ commission-free ETFs). See our best Canadian trading platforms guide for a full comparison.

Tax-account placement cheat sheet

• TFSA → growth ETFs (XEQT, VEQT, VFV) — gains and dividends are tax-free forever.
• RRSP → US-listed ETFs if you ever hold them (treaty exempts US withholding); also fine for VFV/XSP.
• FHSA → bond ETFs or VBAL if your home purchase is <5 years out; growth ETFs if longer.
• Non-registered → Canadian-eligible-dividend ETFs (VDY) for the dividend tax credit.

Full breakdown: FHSA vs RRSP vs TFSA.

Related Canadian markets coverage

• Canadian stock market today — TSX hours, indices, live data
• Canada stocks framework — how to build a shortlist
• Canadian dividend stocks — banks, energy, telecom, miners
• Canada stock ETFs vs individual stocks

Sources

• vanguardcanada.ca — Vanguard Canada product pages.
• blackrock.com/ca — iShares Canada product pages.
• bmogam.com/ca — BMO ETFs product pages.
• sedar.com — Canadian ETF prospectus filings.