Canada’s Top ETFs in February 2024

1. iShares S&P/TSX 60 Index ETF (XIU)

Overview:

• Oldest Canadian ETF, established in 1990.
• Largest ETF with over $11 billion in assets.
• Tracks S&P/TSX 60 Index.

2. Horizons Capped TSX Composite ETF (HXCN)

Overview:

• Offers greater diversification than TSX 60.
• Low-cost fees with a 0.05% MER.
• Caps single stock exposure at 10%.

3. Vanguard FTSE Canada ETF (VCN)

Overview:

• Holds a mix of Canadian stocks, emphasizing dividends.
• Solid capital gains performance since 2013.

4. iShares S&P/TSX Dividend Aristocrats ETF (CDZ)

Overview:

• Focuses on established companies with consistent dividends.
• Higher MER at 0.66%.

5. Vanguard S&P 500 Index ETF (VFV)

Overview:

• Provides exposure to top U.S. companies.
• Low MER of 0.09%.

6. iShares Core S&P 500 ETF (XSP)

Overview:

• Similar to Vanguard’s S&P 500 but hedged to Canadian dollars.
• Lower MER at 0.08%.

7. Vanguard FTSE Developed All Cap Ex North America ETF (VIU)

Overview:

• Diversified exposure to developed markets worldwide.
• MER at a reasonable 0.23%.

8. BMO Aggregate Bond Index ETF (ZAG)

Overview:

• Comprehensive bond exposure with almost 1,500 bonds.
• Low-cost option with an MER of 0.09%.

Frequently Asked Questions (FAQ)

Q1: Why should I consider ETFs over mutual funds?

A: Lower fees are a significant advantage. Most ETFs charge fees about one-tenth that of mutual funds, leading to higher returns. Additionally, ETFs offer simplicity and can be easily traded on stock exchanges.

Q2: What is an ETF and how does it differ from a mutual fund?

A: An ETF is a pooled basket of securities tracking an underlying index, traded on stock exchanges. Unlike actively managed mutual funds, ETFs are more passive and have lower fees. Mutual funds are bought directly from financial advisors, while ETFs are bought and sold on stock exchanges.

Q3: What role do robo-advisors play in ETF investments?

A: Robo-advisors facilitate ETF investments by using software to help investors build portfolios with low-cost ETFs while maintaining suitable asset allocations. They offer a digital alternative to traditional financial advisors.

Q4: Who are the major ETF providers in Canada?

A: The dominant providers are BlackRock (iShares), Vanguard, and the Bank of Montreal (BMO). BlackRock is the top ETF provider in North America, Vanguard is a non-profit giant with low-cost funds, and BMO focuses on a mix of mainstream and specialty ETFs.

Q5: How can I purchase ETFs?

A: ETFs can be purchased directly on the stock exchange. Many investors use online platforms for easy trading. Robo-advisors also offer a hassle-free way to invest in ETFs.

This organized format includes key metrics, tables, and a FAQ section for a quick and comprehensive overview of the top ETFs in Canada. Let me know if you need any further modifications or additional information!