1.Vanguard FTSE Canadian High Dividend Yield Index ETF
VDY.TO (TSX)
VDY, the Vanguard FTSE Canadian High Dividend Yield Index ETF, is an excellent choice for income-focused portfolios, emphasizing dividend-growth stocks from financially robust companies. With a solid dividend yield of 3.19% and impressive one-year and five-year returns of 43.55% and 85.18%, respectively, this ETF delivers reliable income and growth potential.
Pros:
- High dividend yield
- Strong historical returns
Cons:
- Market concentration risk
- Potential for interest rate sensitivity
2.Vanguard S&P 500 Index ETF
VFV.TO (TSX)
VFV, the Vanguard S&P 500 Index ETF, stands out as an attractive option for Canadian investors seeking low-cost exposure to large U.S. companies. With a solid 1-year return of 26.89% and a remarkable 5-year return of 104.72%, it effectively captures the performance of the S&P 500. Additionally, it offers a modest dividend yield of 0.99%, making it a reliable core holding for those looking to diversify their equity investments.
Pros:
- Low-cost exposure to large U.S. companies
- Strong historical performance
Cons:
- Currency risk for Canadian investors
- Lower yield compared to dividend-focused investments
3.iShares Core Growth ETF Portfolio
XGRO.TO (TSX)
XGRO - iShares Core Growth ETF Portfolio stands out as an attractive choice for investors seeking broad diversification with a higher equity allocation than traditional balanced funds. With a solid 1-year return of 21.48% and a remarkable 5-year return of 55.17%, this ETF emphasizes growth-oriented assets, making it a compelling option for long-term investors. Additionally, it offers a dividend yield of 1.97%, contributing to its appeal in a diversified investment strategy.
Pros:
- Growth-oriented asset allocation
- Diversified exposure to equities and fixed income
Cons:
- Higher risk due to equity exposure
- Potential for lower yields compared to fixed income
4.iShares Core Equity ETF Portfolio
XEQT.TO (TSX)
XEQT, the iShares Core Equity ETF Portfolio, is an excellent choice for Canadian investors seeking a simple, all-equity, globally diversified option for their core holdings. With a strong 1-year return of 27.24% and a robust 5-year return of 75.90%, it demonstrates significant growth potential. Additionally, its current dividend yield of 1.69% adds a layer of income, making it an attractive option for those looking to balance growth with some income generation.
Pros:
- Globally diversified equity exposure
- Strong long-term growth potential
Cons:
- Market risk associated with equities
- Potential for lower short-term returns
5.iShares Core MSCI All Country World ex Canada Index ETF
XAW.TO (TSX)
XAW - iShares Core MSCI All Country World ex Canada Index ETF offers broad global equity exposure while excluding Canada, making it an ideal choice for investors seeking international diversification. With a solid 1-year return of 27.27% and an impressive 5-year return of 76.97%, this ETF not only provides growth potential but also boasts a dividend yield of 1.32%. This combination of attributes positions XAW as a strong candidate for those looking to enhance their global investment portfolio.
Pros:
- Broad global equity exposure
- Strong historical performance
Cons:
- Lower yield compared to dividend-focused ETFs
- Currency risk for Canadian investors
6.Invesco NASDAQ 100 Index ETF
QQC.TO (TSX)
QQC - Invesco NASDAQ 100 Index ETF is an attractive choice for investors looking for concentrated exposure to U.S. innovation, particularly in the technology sector. With a remarkable 1-year return of nearly 40% and a solid 5-year return of 148.73%, this growth-heavy ETF offers a dividend yield of 0.42%, making it appealing for those seeking growth alongside some income potential.
Pros:
- Strong focus on technology sector
- High historical returns
Cons:
- Higher volatility due to tech concentration
- Lower dividend yield
Final Words
As you consider the best ETFs this June 2026 in Canada, remember to evaluate each option based on your investment goals and risk tolerance. Take time to compare the various products available and conduct thorough research to make informed decisions that align with your financial objectives.
Frequently Asked Questions
The Vanguard FTSE Canadian High Dividend Yield Index ETF, ticker VDY.TO, is designed to track the performance of the FTSE Canada High Dividend Yield Index. It focuses on providing exposure to Canadian large-, mid-, and small-cap stocks, making it suitable for income-oriented portfolios.
As of May 2026, the Vanguard FTSE Canadian High Dividend Yield Index ETF has shown impressive returns, including a 1-Year Return of 43.55% and a 5-Year Return of 85.18%. This performance highlights its potential for growth and income generation.
VDY.TO distributes dividends on a monthly basis. The next dividend is set at $0.2091, providing a dividend yield of approximately 3.19%.
VDY.TO has a beta of 0.90, indicating it is less volatile than the overall market. This lower risk profile may appeal to conservative investors seeking stable returns from dividend income.
The iShares Core MSCI All Country World ex Canada Index ETF, ticker XAW.TO, offers broad global equity exposure excluding Canada. It aims for long-term capital growth by replicating the performance of the MSCI ACWI ex Canada IMI Index.
Dividend yields are important as they indicate the income generated from an investment relative to its price. For income-focused investors, a higher dividend yield can enhance overall returns and provide a steady income stream.
