Best Etfs in Canada This September 2025
As Canadian investors look to strengthen their portfolios, Exchange-Traded Funds (ETFs) continue to offer an efficient way to diversify investments while keeping costs low. Whether you're new to investing or seeking to optimize your existing portfolio, understanding the latest investment strategies can help you make informed decisions about which ETFs best align with your financial goals in today's market.
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Summary Table for Best Etfs in Canada This September 2025
| Stock | Dividend | 1-Year Return | Learn More |
|---|---|---|---|
|
iShares Core S&P/TSX Capped Composite ETF (XIC) Dividend Income |
2.37% | 22.65% | Learn More |
|
BMO S&P/TSX Capped Composite ETF (ZCN) Dividend Income |
2.30% | 27.25% | Learn More |
|
Vanguard FTSE Canada All Cap ETF (VCN) Dividend Income |
2.35% | 27.47% | Learn More |
|
iShares S&P/TSX 60 ETF (XIU) Dividend Income |
2.57% | 25.38% | Learn More |
|
BMO Aggregate Bond Index ETF (ZAG) Dividend Income |
3.45% | 2.99% | Learn More |
|
Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) Dividend Income |
4.50% | 25.40% | Learn More |
|
iShares MSCI Minimum Volatility Canada ETF (XMV) Dividend Income |
2.27% | 17.83% | Learn More |
|
BMO Low Volatility Canadian Equity ETF (ZLB) Dividend Income |
2.03% | 15.99% | Learn More |
|
Vanguard FTSE Canada Capped REIT Index ETF (VRE) Dividend Income |
2.43% | 11.32% | Learn More |
|
Purpose High Interest Savings ETF (PSA) ETF |
No | 2.04% | Learn More |
1. iShares Core S&P/TSX Capped Composite ETF (XIC)
The iShares Core S&P/TSX Capped Composite ETF (XIC) is one of Canada's largest and most diversified ETFs, offering broad exposure to the Canadian equity market with an impressive track record of returns and minimal management fees.
iShares Core S&P/TSX Capped Composite ETF (XIC)
- Tracks S&P/TSX Capped Composite Index representing 95% of Canadian equity market
- $18.79B in net assets under management
- 0.00% expense ratio (net)
- PE Ratio (TTM) of 20.02
Pros
- Excellent diversification across Canadian market
- No expense ratio
- High liquidity and large asset base
- Strong track record of performance
Cons
- Limited to Canadian market exposure
- Subject to market volatility
- No international diversification
Why is it Our Top Pick?
XIC stands out as a premier choice for RRSP investors due to its extensive diversification across Canadian sectors and companies. With its impressive track record of performance and zero expense ratio, it offers an efficient way to capture the growth of the Canadian market while minimizing risk through broad diversification.
2. BMO S&P/TSX Capped Composite ETF (ZCN)
The BMO S&P/TSX Capped Composite ETF provides comprehensive exposure to over 200 top-ranked Canadian stocks, with strong analyst support and consistent performance backed by BMO's expertise in index tracking.
BMO S&P/TSX Capped Composite ETF (ZCN)
- Tracks S&P/TSX Capped Composite Total Return Index
- $12.465B in net assets
- Low management expense ratio of 0.06%
- Physical exposure to underlying securities
Pros
- Strong analyst consensus (182 buy ratings)
- Low management fee
- High market coverage (95% of Canadian equity market)
- Regular quarterly distributions
Cons
- Limited to Canadian market exposure
- Slightly higher expense ratio than some competitors
- Similar volatility to peer ETFs (1.87%)
3. Vanguard FTSE Canada All Cap ETF (VCN)
The Vanguard FTSE Canada All Cap ETF offers broad exposure to Canadian equity markets through a passively managed fund that tracks large-, mid-, and small-cap securities, with an impressive track record of over 75% returns in 5 years and an ultra-low expense ratio of 0.05%.
Vanguard FTSE Canada All Cap ETF (VCN)
- Tracks FTSE Canada All Cap Domestic Index
- Passively managed with full replication strategy
- Covers large-, mid-, and small-cap Canadian securities
- Ultra-low expense ratio of 0.05%
Pros
- Comprehensive coverage of Canadian market
- Very low management fees
- Strong long-term performance track record
- High liquidity and trading volume
Cons
- Limited to Canadian market exposure only
- Mixed short-term trading signals
- Subject to Canadian market volatility
- Geographic concentration risk
4. iShares S&P/TSX 60 ETF (XIU)
As Canada's first and most liquid ETF, XIU provides targeted exposure to 60 of the largest Canadian companies, offering a compelling combination of established market leaders with a proven track record of 8.58% annual returns over the past decade.
iShares S&P/TSX 60 ETF (XIU)
- Tracks S&P/TSX 60 Index
- Focuses on large, established Canadian companies
- One of Canada's largest and most liquid ETFs
- Pioneer ETF trading since 1990
Pros
- Strong analyst consensus (52 buy ratings)
- Long-established track record
- High market liquidity
- Exposure to Canada's biggest companies
Cons
- Limited to large-cap stocks only
- Concentrated in top 60 companies
- Geographic concentration risk
- May miss smaller growth opportunities
5. BMO Aggregate Bond Index ETF (ZAG)
The BMO Aggregate Bond Index ETF provides core fixed income exposure by tracking the FTSE Canada Universe Bond Index, offering investors a balance of steady income and downside protection with minimal fees.
BMO Aggregate Bond Index ETF (ZAG)
- Tracks FTSE Canada Universe Bond Index
- Low management expense ratio of 0.09%
- $11.49B in net assets
- Monthly dividend distributions
Pros
- Low management fees (0.09% MER)
- Suitable for retirement portfolios
- Strong downside protection
- Monthly income distributions
Cons
- Market value can fluctuate
- Distributions not guaranteed
- May trade at discount to NAV
- Lower returns compared to equity investments
6. Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
The Vanguard FTSE Canadian High Dividend Yield Index ETF offers exposure to dividend-paying Canadian companies with impressive historical performance, delivering both strong dividend income and capital appreciation potential.
Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
- Tracks FTSE Canada High Dividend Yield Index
- Focuses on Canadian dividend-paying stocks
- Strong historical performance (25.40% 1-year return)
- Monthly distribution schedule
Pros
- Impressive historical returns
- High dividend yield focus
- Diversified exposure to Canadian market
- Strong three-year performance (18.29%)
Cons
- Concentrated in dividend-paying sectors
- Market value fluctuation risk
- Geographic concentration in Canada
- May underperform in growth markets
7. iShares MSCI Minimum Volatility Canada ETF (XMV)
The iShares MSCI Minimum Volatility Canada ETF offers investors exposure to Canadian equities with potentially less risk, delivering impressive returns while maintaining a focus on reducing portfolio volatility.
iShares MSCI Minimum Volatility Canada ETF (XMV)
- Tracks MSCI Canada Minimum Volatility Index
- Management expense ratio (MER) of 0.34%
- $52.38 NAV per unit
- Low to medium risk rating
Pros
- Impressive YTD return of 16.38%
- Low turnover rate of 42%
- Professional management by BlackRock
Cons
- Higher MER compared to some passive ETFs
- Limited to Canadian market exposure
- May underperform in strong bull markets
8. BMO Low Volatility Canadian Equity ETF (ZLB)
The BMO Low Volatility Canadian Equity ETF combines strong performance with risk management, offering investors a strategic approach to Canadian equity exposure with an emphasis on minimizing market volatility.
BMO Low Volatility Canadian Equity ETF (ZLB)
- $5.32B in net assets
- Management expense ratio of 0.39%
- Beta of 0.61 (5Y Monthly)
- Low risk rating
Pros
- Large fund size provides liquidity
- Consistent three-year performance
- Lower correlation to market movements
Cons
- Slightly higher expense ratio
- May lag in strong bull markets
- Limited to Canadian equity exposure
9. Vanguard FTSE Canada Capped REIT Index ETF (VRE)
The Vanguard FTSE Canada Capped REIT Index ETF provides broad exposure to Canadian real estate investment trusts while maintaining a competitive yield of 2.43% and strong historical performance.
Vanguard FTSE Canada Capped REIT Index ETF (VRE)
- Tracks FTSE Canada All Cap Real Estate Capped 25% Index
- Low P/E ratio of 22.07 compared to category average
- Competitive expense ratio and beta of 1.04
- Monthly dividend distributions
Pros
- Well-diversified exposure to Canadian REITs
- Lower price ratios than category average
- Strong historical performance track record
Cons
- Higher volatility with beta over 1.0
- Concentrated in real estate sector
- Performance can be affected by interest rate changes
10. Purpose High Interest Savings ETF (PSA)
Purpose High Interest Savings ETF offers a low-risk investment vehicle that provides exposure to high-interest deposit accounts with Schedule I Canadian banks, delivering steady monthly income with daily interest calculations.
- Strategic allocation to high-interest deposit accounts
- Daily interest calculation with monthly payments
- Backed by Schedule I Canadian banks
- Short-term Bank of Canada Treasury Bills exposure
Pros
- Low-risk investment option
- Steady, predictable returns
- High liquidity and accessibility
Cons
- Lower returns compared to equity investments
- Yield subject to interest rate fluctuations
- May not keep pace with inflation
Final Words
Selecting the ideal financial product ultimately depends on your individual goals, spending patterns, and financial situation. We recommend comparing the features and benefits of our top picks, then taking action to optimize your financial strategy for the current market conditions.
Frequently Asked Questions: Best Etfs in Canada This September 2025
What are the best ETFs in Canada for September 2025?
The iShares Core S&P/TSX Capped Composite ETF (XIC) and BMO S&P/TSX Capped Composite ETF (ZCN) are leading the Canadian market with comprehensive market exposure and low management fees of 0.06%.
Which Canadian ETF has the lowest fees in 2025?
The Vanguard FTSE Canada All Cap ETF (VCN) offers one of the lowest management fees at 0.05% while providing broad market coverage.
How do I choose between iShares and BMO ETFs in Canada 2025?
The iShares S&P/TSX 60 ETF (XIU) focuses on large-cap stocks with a 0.18% fee, while BMO's ZAG offers broader bond market exposure at 0.09% management fee.
