1.BMO Aggregate Bond Index ETF
ZAG.TO (TSX)
The BMO Aggregate Bond Index ETF (ZAG) stands out as a top-rated choice for fixed income allocation, making it ideal for investors looking for reliable income. Currently, it offers a dividend yield of 3.42%, although it has experienced a 1-year return of -2.11% and a notable 5-year return of -12.84%. Historically, ZAG has demonstrated resilience with a 4.14% compound annual return over the last 30 years, making it an attractive option for long-term bond investors.
Pros:
- Designed for fixed income allocation
- Replicates performance of a broad bond index
Cons:
- Negative returns over the past year
- Interest rate risk affecting bond prices
2.iShares Core Equity ETF Portfolio
XEQT.TO (TSX)
The iShares Core Equity ETF Portfolio (XEQT) stands out as a top-rated, all-in-one ETF solution that provides comprehensive portfolio diversification in a single fund. With a solid 1-year return of 18.68% and a 5-year return of 69.39%, this fund is ideal for investors seeking exposure to a broad range of assets. Currently, the net asset value is $42.30, reflecting a 2.68% increase over the past month, further demonstrating its robust performance.
Pros:
- All-in-one ETF solution
- Full portfolio diversification
Cons:
- Market risk associated with equities
- Potential for higher volatility
3.BMO Covered Call Technology ETF
ZWT (TSX)
The BMO Covered Call Technology ETF (ZWT) has delivered an impressive 150% total return in Canadian dollars since its launch in early 2021, outperforming the NASDAQ 100. With a solid dividend yield of 4.97%, this ETF targets investors seeking exposure to the technology sector while benefiting from covered call strategies. Its strong performance highlights its potential as an attractive choice for those looking to capitalize on tech growth while securing reliable income.
Pros:
- Technology sector exposure
- High potential for growth
Cons:
- High risk associated with technology stocks
- Market volatility
4.Vanguard FTSE Canada All Cap Index ETF
VCN.TO (TSX)
The Vanguard FTSE Canada All Cap Index ETF (VCN) offers comprehensive exposure to Canadian equities with an impressively low management expense ratio of 0.06%. Ideal for RRSP or TFSA accounts, it delivers a strong 1-year return of 33.56% and an impressive 5-year return of 85.35%, alongside a dividend yield of 2.26%. Historically, VCN has shown a solid compound annual return of 8.51% over the past 30 years, making it a reliable choice for long-term investors.
Pros:
- Comprehensive Canadian equity exposure
- Strong historical returns
Cons:
- Market risk associated with equity investments
- Potential for lower returns in volatile markets
5.BMO Global Infrastructure Index ETF
ZGI.TO (TSX)
BMO Global Infrastructure Index ETF (ZGI) is an attractive option for investors seeking exposure to the infrastructure sector, featuring a solid dividend yield of 2.71%. Over the past five years, it has delivered impressive annualized returns of 70.06%, demonstrating its potential for growth and inflation sensitivity. With consistent payouts from financially healthy companies, ZGI positions itself well in the market for those looking for reliable income and performance.
Pros:
- Exposure to infrastructure sector
- Strong historical returns
Cons:
- Market risk associated with infrastructure investments
- Potential for lower liquidity
6.BMO S&P TSX Capped Composite Index ETF
ZCN (TSX)
BMO S&P TSX Capped Composite Index ETF (ZCN) emerges as an attractive low-cost option for Canadian equity investors, with a minimal management expense ratio of 0.06%. The ETF boasts a solid 1-year return of 35.24% and a 5-year return of 83.19%, complemented by a dividend yield of 2.21%. Analysts project a promising future for ZCN, with an average price target of C$50.07, indicating potential growth ahead.
Pros:
- Low-cost Canadian equity option
- Access to small-cap stocks
Cons:
- Market volatility risk
- Dependence on Canadian market performance
7.iShares Core MSCI All Country World ex Canada Index ETF
XAW.TO (TSX)
The iShares Core MSCI All Country World ex Canada Index ETF (XAW) is an attractive option for investors seeking international diversification with a lower management expense ratio compared to its peers. Delivering a solid 1.32% dividend yield, XAW has achieved a remarkable 13.51% return over the past year and an impressive 64.77% over the last five years. This ETF provides exposure to 98% of the world's investable markets, making it an ideal choice for long-term portfolio growth and simplicity, especially within a TFSA.
Pros:
- International diversification
- Lower management expense ratio
Cons:
- Currency risk
- Dependence on global market performance
8.Horizons S&P/TSX 60 ETF
HXT (TSX)
The Horizons S&P/TSX 60 ETF (HXT) stands out as an excellent choice for investors seeking targeted exposure to Canada's top 60 companies. With impressive returns of 32.48% over the past year and a remarkable 107.87% over five years, this ETF emphasizes stability and growth within financially sound firms. Its strong performance makes it a compelling option for those looking to enhance their Canadian equity portfolios.
Pros:
- Focused exposure to Canada's largest companies
- Strong historical returns
Cons:
- No regular distributions
- Market risk associated with large-cap stocks
9.iShares Core S&P/TSX Capped Composite Index ETF
XIC.TO (TSX)
The iShares Core S&P/TSX Capped Composite Index ETF (XIC) offers investors a low-cost entry into Canadian equities, with a modest management expense ratio of 0.06%. With a solid 1-year return of 35.18% and an impressive 5-year return of 85.01%, this ETF has consistently tracked its benchmark effectively, making it a compelling long-term investment option. Additionally, it boasts a dividend yield of 2.22%, providing reliable income alongside growth potential.
Pros:
- Low-cost investment option
- Access to smaller-cap stocks
Cons:
- Market volatility risk
- Dependence on Canadian market performance
10.BMO Equal Weight REITs Index ETF
ZRE.TO (TSX)
The BMO Equal Weight REITs Index ETF (ZRE) offers an appealing 4.61% dividend yield, with consistent monthly payouts, making it an attractive choice for income-focused investors. Over the past year, ZRE has delivered a solid return of 9.45%, although its five-year performance shows a modest increase of 1.14%. With a relatively low volatility at 5.50%, this ETF provides exposure to a diverse range of 20 Canadian REITs, presenting a balanced investment opportunity in the real estate sector.
Pros:
- Diversified exposure across Canadian REITs
- Attractive yield
Cons:
- Volatility in real estate market
- Potential for lower growth compared to equities
Final Words
As you consider the best ETFs in Canada this March 2026, remember that thorough research and comparison of your options are essential to making informed investment decisions. Take time to evaluate each ETF's performance and fees to find the right fit for your financial goals.
Frequently Asked Questions
The Vanguard FTSE Canada All Cap Index ETF (VCN.TO) provides comprehensive exposure to Canadian equities, tracking the performance of the FTSE Canada All Cap Domestic Index. It is known for its low management expense ratio of 0.06% and is suitable for RRSP or TFSA accounts.
As of early 2026, the Vanguard FTSE Canada All Cap Index ETF has delivered a 1-year return of 33.56% and a 5-year return of 85.35%. It also boasts a dividend yield of 2.26%, with distributions made quarterly.
Investing in ETFs involves market risk, including the possibility of losing principal. Additionally, the performance of an ETF can be affected by factors such as sector volatility and changes in market conditions.
When compared to other Canadian ETFs, such as the iShares Core S&P/TSX Capped Composite Index ETF (XIC.TO), VCN.TO offers similar low expense ratios and strong historical performance. However, each ETF has different sector exposures and investment strategies, which should be considered based on individual investment goals.
The Vanguard FTSE Canada All Cap Index ETF currently has a dividend yield of 2.26%. It distributes dividends quarterly, with the next dividend set at $0.3881.
Yes, the Vanguard FTSE Canada All Cap Index ETF is an excellent option for retirement accounts such as RRSPs or TFSAs due to its low management fee and broad exposure to the Canadian equity market.


