Best ETFs for 2024: Best Canadian equity ETFs

However, there are nonetheless good causes to carry Canadian fairness exchange-traded funds (ETFs) in your portfolio.

For one, they’re tax-efficient in non-registered accounts as a result of the dividend distributions they pay take pleasure in a decrease tax charge than overseas dividends. Secondly, their dividend yield is increased (shut to three% proper now) than both U.S. or worldwide fairness index ETFs. And at last, they provide diversification within the type of commodity publicity, which will be an inflation hedge.

This class was once owned by the large three of index investing—iShares, BMO and Vanguard—however an outsider, TD’s Canadian Fairness Index, vaulted to the highest of our voting this 12 months, because of its ultra-low management expense ratio (MER) of 0.05%. It additionally tracks the Solactive Canada Broad Market Index, an alternative choice to the extra widespread S&P/TSX and FTSE Canada indices. That makes it potential to dodge superficial loss guidelines when shopping for or promoting bigger funds with considerably comparable publicity, reminiscent of iShares Core S&P/TSX Capped Composite Index ETF (XIC) and Vanguard FTSE Canada All Cap Index ETF (VCN).

“I believe the best use for this ETF, past a core portfolio holding, is as a tax-loss harvesting accomplice for the Vanguard and iShares ETFs, provided that they’ve comparable holdings and historic efficiency however monitor completely different indices, thus sidestepping the CRA’s superficial loss rule,” says panellist Tony Dong.

There was a three-way tie for the runner-up place, with VCN, XIC and ZCN (BMO S&P/TSX Capped Composite Index ETF) all inserting. All of the funds talked about have razor-thin MERs of 0.05% or 0.06%.

Within the desk under, you’ll discover the perfect Canadian fairness ETFs, as judged by our panel. Slide the columns proper or left utilizing your fingers or mouse to disclose extra information. You may obtain the info to your system in Excel, CSV and PDF codecs.