Best Etfs For Beginners this January 2026 in Canada

The Vanguard S&P 500 Index ETF (VFV) offers broad exposure to U.S. large-cap stocks, making it an attractive option for beginners looking for low-cost growth within a TFSA. With a solid 1-year return of 15.25% and an impressive 5-year return of over 100%, this fund demonstrates significant long-term potential, even rebounding strongly after market downturns such as in 2022.

VFV's price has increased by 0.84% over the last month, with a yearly performance showing a 12.82% rise.

VFV has demonstrated strong long-term performance, rebounding from market downturns with returns of 23% in 2023 and 35% in 2024, making it a solid choice for buy-and-hold investors.

The Invesco NASDAQ 100 Index ETF (QQC) offers investors a strategic entry into top tech-focused companies, making it an ideal choice for growth-oriented beginners. With a solid 1-year return of 19.60% and a remarkable 5-year return of 114.85%, this ETF also features a modest dividend yield of 0.38%, providing both growth potential and some income. Although QQC has seen a slight decline of 0.17% over the past month, it boasts a strong annual performance, reflecting a 15.53% increase.

The QQC ETF has decreased by 0.17% over the last month, but it has increased by 15.53% over the past year.

As of January 9, 2026, the forward dividend yield for QQC.TO is 0.38%, with an average dividend growth rate of 30% over the past three years.

QQC offers exposure to the Nasdaq-100 index combined with a convexity overlay strategy, aiming for enhanced returns while managing downside risks.

Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY) targets high-dividend stocks in Canada, particularly in the banking and energy sectors. With a solid dividend yield of 3.54% and an impressive 1-year return of 26.97%, this ETF is well-suited for investors seeking reliable monthly income and long-term wealth building. Its passively managed approach ensures exposure to a diverse range of large-, mid-, and small-cap stocks, making VDY a strong option for those looking for stability in their portfolio.

VDY is a strong choice for long-term investors seeking reliable monthly income and tax-efficient cash flow, as it supports wealth accumulation over time.

The average 12-month price target for VDY is C$65.81, with a high of C$75.55 and a low of C$59.52, indicating a potential 5.28% increase from its current price of C$62.51.

VDY uses a passively managed, full-replicated index strategy to invest in a diversified portfolio of Canadian large-, mid-, and small-cap stocks across various industries.

VDY is tax-efficient in Canada, as eligible dividends receive a tax credit, capital gains are taxed at half the marginal rate, and return of capital is not taxed until sold.