Best Etfs this February 2026 in Canada

The Horizons S&P/TSX 60 ETF (HXT) is an excellent choice for investors seeking core exposure to the top 60 Canadian companies. With a remarkable 1-year return of 28.17% and an impressive 5-year return of 115.21%, it effectively tracks both growth and value stocks from large-cap firms, mirroring the S&P/TSX 60 Index. This ETF stands out as a top-rated option for those looking to capitalize on the robust performance of Canada's leading equities.

HXT invests in both growth and value stocks of large-cap companies, aiming to track the performance of the S&P/TSX 60 Index.

HXT is an exchange-traded fund that replicates the performance of the S&P/TSX 60 Index, which includes 60 of the largest and most liquid stocks on the Toronto Stock Exchange.

Yes, HXT is a passively managed Canadian ETF launched on September 14, 2010, by Global X Investments Canada Inc.

The iShares Core Equity ETF Portfolio (XEQT) stands out as a top-rated all-in-one ETF solution, offering broad equity exposure at a low cost—perfect for long-term investors in Canada. With a solid 1-year return of 19.16% and a remarkable 5-year return of 73.49%, XEQT is a compelling choice for those seeking reliable growth. Currently, it boasts a dividend yield of 1.65%, reflecting its commitment to providing consistent returns from financially healthy companies.

XEQT's net asset value is currently 41.19, reflecting a 2.66% increase over the past month.

As of January 22, 2026, XEQT has a forward dividend yield of 2.02%, with an average dividend growth rate of 9.06% over the past three years.

The primary risk of XEQT is its 100% equity exposure, which, despite diversification, lacks fixed income support in declining markets.

The BMO Aggregate Bond Index ETF (ZAG) stands out for its ultra-low 0.08% management expense ratio and broad diversification, making it a strong choice for investors seeking stability in their portfolios. Currently, it offers a dividend yield of 3.46%, though its 1-year return is slightly negative at -0.79% and a more significant drop of -15.91% over the past five years. With its strategy of replicating the FTSE Canada Universe Bond Index, ZAG provides a reliable option for rebalancing and long-term fixed-income exposure.

Over the past 30 years, the BMO Aggregate Bond Index ETF (ZAG.TO) has achieved a 4.15% compound annual return, with a standard deviation of 4.43%, and a maximum drawdown of -16.11% that has persisted for 65 months.

The ZAG ETF aims to replicate the performance of the FTSE Canada Universe Bond Index™ while investing in a diverse range of debt securities with maturities greater than one year.

ZAG primarily invests in investment-grade government and corporate securities rated BBB or higher, seeking to replicate the FTSE Canada Universe Bond Index through full replication.

The BMO Equal Weight REITs Index ETF (ZRE) offers an appealing strategy by diversifying investments across 21 Canadian real estate investment trusts (REITs) with an equal-weight structure. With a monthly dividend yield of approximately 4.63% and a 1-year return of 13.95%, this ETF is designed for investors seeking reliable income and exposure to the Canadian real estate market. While it is generally less volatile than other equities, ZRE is still subject to economic and interest rate risks, making it essential for investors to consider these factors when evaluating their investment.

The ZRE ETF is expected to rise by 3.32% over the next three months, with a projected price range between $22.78 and $24.60.

ZRE is influenced by economic conditions, interest rates, and geographic risks, and while generally less volatile, it remains sensitive to rising interest rates.

ZRE has a dividend yield of 4.54%, paying 1.08 CAD per share annually, with monthly payments and the last ex-dividend date on December 30, 2025.

ZRE is the BMO Equal Weight REITs Index ETF, which invests in real estate sectors in Canada.