1.BMO All-Equity ETF
ZEQT.TO (TSX)
BMO All-Equity ETF (ZEQT) is an ideal choice for investors looking for global diversification and long-term growth in a single fund. With a dividend yield of 2.88% and impressive returns of 18.98% over the past year and 58.04% over five years, ZEQT continues to demonstrate strong performance. Its strategy of providing exposure to a wide array of equities makes it a valuable addition to any growth-focused portfolio.
Pros:
- Global diversification
- Suitable for long-term growth
Cons:
- Lower yield compared to other ETFs
- Market volatility risk
2.Vanguard FTSE Canadian High Dividend Yield Index ETF
VDY.TO (TSX)
Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) is an attractive option for investors seeking reliable income and stability through high-dividend Canadian stocks. With a dividend yield of approximately 3.73%, VDY has delivered impressive returns of 25.82% over the past year and 89.05% over five years, making it a solid choice for those looking to build wealth over time. Its strong performance, tax efficiency, and consistent payouts continue to earn it a top rating among Canadian dividend ETFs, appealing especially to beginners in the market.
Pros:
- High dividend yield
- Strong historical returns
Cons:
- Concentration in Canadian stocks
- Market risk exposure
3.Invesco NASDAQ 100 Index ETF
QQC.TO (TSX)
The Invesco NASDAQ 100 Index ETF (QQC) provides investors with a gateway to leading tech and growth stocks in CAD, making it a compelling choice for those new to the market. With a solid 1-year return of 15.96% and an impressive 5-year return of 111.31%, QQC is designed for those seeking exposure to U.S. innovation. Its forward dividend yield stands at 0.39%, reflecting the fund's commitment to consistent income in an equity environment that can be volatile.
Pros:
- Exposure to top tech stocks
- Strong historical returns
Cons:
- High concentration risk
- Market volatility risk
4.Vanguard S&P 500 Index ETF
VFV.TO (TSX)
Vanguard S&P 500 Index ETF (VFV) is an ideal choice for beginner investors looking to tap into the growth potential of the U.S. large-cap market. With a solid 1-year return of 9.70% and an impressive 5-year return of 97.42%, it offers broad exposure to financially healthy companies. Additionally, VFV features a dividend yield of 0.91%, making it a compelling option for those seeking steady income in a TFSA.
Pros:
- Broad exposure to U.S. large-cap stocks
- Strong historical returns
Cons:
- Lower yield compared to dividend-focused ETFs
- Market volatility risk
5.BMO Low Volatility Canadian Equity ETF
ZLB.TO (TSX)
The BMO Low Volatility Canadian Equity ETF (ZLB) is an ideal choice for conservative investors seeking stability, as it targets lower-risk Canadian stocks to deliver smoother returns. With a remarkable one-year return of 21.19% and a five-year return of 72.56%, this fund has consistently outperformed its low-volatility peers. Additionally, it boasts a dividend yield of 1.93%, making it a compelling option for those looking for reliable income.
Pros:
- Targets lower-risk stocks
- Smoother returns
Cons:
- Potentially lower growth
- Limited exposure to high-growth sectors
6.Vanguard FTSE Canada All Cap ETF
VCN (TSX)
Top-rated by Morningstar, the Vanguard FTSE Canada All Cap ETF (VCN) offers extensive coverage of the Canadian market while maintaining low costs and high diversification. With a solid 1-year return of 29.64% and a notable 5-year return of 91.84%, it serves as an attractive option for investors seeking broad market exposure. However, it's important to note that VCN's long-term earnings growth prospects lag behind the S&P 500, which may make it more suitable as a non-core investment.
Pros:
- Broad market coverage
- Strong historical performance
Cons:
- Weaker growth prospects compared to S&P 500
- Potentially high volatility
Final Words
As you consider the best ETFs for beginners in Canada this February 2026, remember to evaluate your investment goals and risk tolerance. Take time to compare your options and conduct thorough research to make informed choices that align with your financial objectives.
Frequently Asked Questions
VDY focuses on high-dividend Canadian stocks, providing a steady income stream and stability, making it suitable for beginners. It offers monthly distributions and has a solid track record of performance.
The Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) has a current dividend yield of approximately 3.73%. This yield reflects the ETF's focus on high-dividend stocks, making it attractive for income-seeking investors.
VDY has delivered a 1-year return of 25.82%, showcasing its strong performance in the market. This impressive return highlights the ETF's potential for capital appreciation alongside its dividend income.
While no investment is entirely risk-free, VDY's focus on established Canadian companies with high dividend yields generally offers a level of stability. Investors should consider their risk tolerance and investment goals when evaluating VDY.
Other recommended ETFs for beginners include the BMO All-Equity ETF (ZEQT), which provides global diversification and is designed for long-term growth. Diversifying across various ETFs can help manage risk and enhance potential returns.
To compare ETFs, consider factors such as performance history, expense ratios, dividend yields, and the underlying assets they track. Reviewing these metrics can help you determine which ETFs align best with your investment strategy.
