1.Horizons S&P/TSX 60 ETF
HXT (TSX)
The Horizons S&P/TSX 60 ETF (HXT) offers an attractive investment opportunity with the lowest fee at 0.04% after rebate, making it ideal for non-registered accounts due to its tax advantages. This ETF effectively tracks the performance of Canada’s top 60 stocks, combining both growth and value elements, evidenced by impressive returns of 28.19% over the past year and 115.24% over five years. Investors seeking a low-cost, diversified exposure to the Canadian equity market will find HXT a compelling choice.
Pros:
- Lowest fee at 0.04%
- Tracks top 60 Canadian stocks
Cons:
- Limited information on dividend payments
- Market risk associated with equity securities
2.BMO S&P/TSX Capped Composite Index ETF
ZCN.TO (TSX)
The BMO S&P/TSX Capped Composite Index ETF (ZCN) is an attractive option for beginner investors, offering a low management expense ratio of just 0.06%. With a solid dividend yield of 2.21% and impressive returns of 30.93% over the past year and 88.68% over the last five years, it provides broad access to the full Canadian market, including smaller-cap stocks. Analysts maintain a consensus rating of Moderate Buy, with a notable average price target of 47.84, reflecting positive growth prospects.
Pros:
- Low MER of 0.06%
- Provides access to the full Canadian market
Cons:
- May not be suitable for advanced investors
- Market volatility risk
3.Vanguard FTSE Canada All Cap Index ETF
VCN.TO (TSX)
Vanguard FTSE Canada All Cap Index ETF (VCN) offers a low management expense ratio of just 0.05%, providing investors with broad exposure to large, mid, and small-cap Canadian stocks. With a solid 1-year return of 29.64% and a commendable 5-year return of 91.84%, this ETF is an attractive option for those seeking diversification in their portfolios. Additionally, its dividend yield of 2.26% adds a layer of income, making VCN a compelling choice for investors looking for a non-core holding.
Pros:
- Ultra-low MER of 0.05%
- Broad exposure to Canadian stocks
Cons:
- Long-term growth prospects weaker than S&P 500
- Higher volatility compared to some peers
Final Words
As you consider your investment options this February 2026, remember that low-cost index funds like the Horizons S&P/TSX 60 ETF can be a smart choice for building your portfolio. Take time to compare different options and conduct your own research to find the best fit for your financial goals.
Frequently Asked Questions
The Horizons S&P/TSX 60 ETF (HXT) is a Canadian exchange-traded fund that tracks the performance of the S&P/TSX 60 Index, which includes the top 60 Canadian stocks. It has a low fee of 0.04% after rebate and offers tax advantages in non-registered accounts.
As of now, the Horizons S&P/TSX 60 ETF has shown impressive returns, with a 1-Year Return of 28.19% and a 5-Year Return of 115.24%. These returns highlight its performance over different time frames.
Yes, HXT can be a suitable option for beginners as it provides exposure to a diversified portfolio of the largest Canadian companies. Its low management fee and potential for growth make it an attractive choice for new investors.
The BMO S&P/TSX Capped Composite Index ETF (ZCN) offers access to the full Canadian market, including smaller cap stocks, with a low management expense ratio (MER) of 0.06%. It's particularly ideal for beginners looking to invest in a diversified Canadian equity portfolio.
Index funds like the BMO S&P/TSX Capped Composite Index ETF typically distribute dividends quarterly. For example, ZCN has a recent dividend yield of approximately 2.21%.
Investing in index funds involves market risk, as the value of the fund can fluctuate with market conditions. It's important to understand that while they offer diversification, they also carry the risk of loss if the market declines.
