1.Vanguard FTSE Canada All Cap Index ETF
VCN.TO (TSX)
Vanguard FTSE Canada All Cap Index ETF (VCN) is an attractive option for investors looking for a low management expense ratio while gaining exposure to a broad spectrum of Canadian equities, including large, mid, and small-cap stocks. With a focus on dividend growth, this ETF boasts a dividend yield of 2.24% and impressive historical performance, delivering a 25.78% return over the past year and 70.18% over five years. Historically, VCN has achieved a compound annual return of 8.79% over the past 30 years, demonstrating its resilience and potential for reliable income.
Pros:
- Low MER broad Canadian equity index fund
- Strong long-term performance
Cons:
- Market risk associated with stock prices
- Company-specific risk
2.Horizons S&P/TSX 60 ETF
HXT (TSX)
The Horizons S&P/TSX 60 ETF (HXT) stands out as the lowest fee Canadian equity index ETF, boasting a mere 0.04% fee after rebate. With impressive returns of 26.37% over the past year and a remarkable 93.05% over five years, it’s an attractive option for long-term investors seeking exposure to Canada’s top 60 stocks while benefiting from tax-efficient core holdings. This ETF is ideal for those looking to leverage the growth and dividends of financially healthy large-cap companies.
Pros:
- Lowest fee Canadian equity index ETF
- Ideal for tax-efficient core holdings
Cons:
- Not suitable for investors looking for regular distributions
- Market volatility risk
3.Vanguard FTSE Global All Cap ex Canada Index ETF
VXC.TO (TSX)
Vanguard FTSE Global All Cap ex Canada Index ETF (VXC) offers an efficient way to diversify internationally, boasting a low management expense ratio of just 0.22%. With a solid 1-year return of 12.06% and an impressive 5-year return of 54.50%, it is an attractive choice for investors looking to enhance their global equity exposure without the burden of high fees. Additionally, the ETF features a dividend yield of 1.42%, making it a compelling option for those seeking reliable income from their investments.
Pros:
- Low-cost global equity index for international diversification
- Extremely cost-effective with low MER
Cons:
- Recent negative returns over short-term periods
- Exposure to international market volatility
4.iShares Core Equity ETF Portfolio
XEQT.TO (TSX)
An attractive option for investors seeking broad global equity exposure, the iShares Core Equity ETF Portfolio (XEQT) offers a low management expense ratio of just 0.20%. With an impressive 5-year return of 59.57% and a 1-year return of 15.47%, this top-rated ETF includes over 9,000 stocks, diversifying investments across 45% U.S., 25% Canada, 25% developed international, and 5% emerging markets. As of today, XEQT trades at 38.81 CAD, reflecting a slight decrease of 1.56% in the last 24 hours, while delivering a dividend yield of 1.69%.
Pros:
- Easiest all-in-one low-cost index ETF
- Broad global equity exposure
Cons:
- Not a substitute for proper investment research
- Recent negative short-term performance
5.BMO Aggregate Bond Index ETF
ZAG.TO (TSX)
BMO Aggregate Bond Index ETF (ZAG) stands out as a leading, low-cost option for investors looking to diversify their fixed income holdings. With a current dividend yield of 3.42%, it provides a steady income stream, although it has faced challenges recently with a 1-year return of -2.54% and a 5-year return of -13.09%. This ETF is an attractive choice for those seeking a balanced portfolio amid fluctuating market conditions.
Pros:
- Leading low-cost Canadian bond index ETF
- Provides fixed income diversification
Cons:
- Negative performance in recent years
- High-interest-rate environment impact
Final Words
As you consider your investment options this April 2026, remember that low-cost index funds like the Horizons S&P/TSX 60 ETF can offer significant benefits for your portfolio. Take time to compare different funds and conduct your own research to ensure you make informed choices that align with your financial goals.
Frequently Asked Questions
The Horizons S&P/TSX 60 ETF (HXT) is a low-cost index fund that tracks the top 60 stocks listed on the TSX. It has a management fee of 0.04% after rebate and is designed for tax-efficient core holdings.
HXT has shown strong performance with a 1-Year Return of 26.37%, a 3-Year Return of 72.54%, and a 5-Year Return of 93.05%. This makes it a compelling option for investors looking for growth in the Canadian equity market.
Yes, HXT is particularly suited for long-term investors who want exposure to the growth and dividends of Canada's leading corporations. It seeks to replicate the performance of the S&P/TSX 60 Index, providing a diversified investment across various sectors.
Investing in HXT carries certain risks, including exposure to market volatility and potential aggressive investment risks due to its use of derivatives. It's important for investors to understand these risks and assess their own risk tolerance before investing.
HXT stands out due to its low management fee of 0.04% and its focus on the top 60 TSX stocks. When comparing to other Canadian index funds, investors should consider factors such as performance, fees, and the specific indices they track.
HXT is ideal for investors looking for total return exposure to the large-cap Canadian equity market and who can manage the market's ups and downs. It is particularly suitable for those not focused on regular distributions but rather on long-term capital appreciation.
