For investors seeking top-performing and stable investment options, Exchange-Traded Funds (ETFs) continue to be an attractive choice. Actively trading on the Toronto Stock Exchange (TSX), these ETFs offer diversification, strong returns, and broad market exposure.
Below, we highlight three of the best-performing Canadian ETFs and include an analysis based on Stock Target Advisor’s insights.
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1. Vanguard S&P 500 Index ETF (VFV:CA)
The Vanguard S&P 500 Index ETF (VFV:CA) is designed to replicate the performance of the S&P 500 Index, providing exposure to large-cap U.S. stocks. This ETF is particularly suitable for investors looking to diversify into the U.S. equity market.
- Stock Performance: Priced at CAD 155.30, VFV has experienced remarkable growth, with a 1-year capital gain of 32.95% and a total return of 34.22%. It remains a strong performer in the sector, ranking in the 91st percentile for total returns.
- Stock Target Advisor Rating: Bullish, based on 3 positive signals and 1 negative signal.
2. BMO S&P 500 Index ETF (ZSP:CA)
The BMO S&P 500 Index ETF (ZSP:CA) mirrors the performance of the S&P 500 Index. It is a cost-effective way to access the U.S. market with exposure to the same large-cap companies.
- Stock Performance: Trading at CAD 95.72, ZSP has shown consistent growth and offers a dividend yield of 0.92%. Its year-to-date gains have made it a popular choice among Canadian investors.
- Stock Target Advisor Rating: Bullish, with strong performance metrics and low expense ratios, making it an excellent option for long-term growth.
Check out our curated list of Highest Income ETFs for top-performing investment opportunities.
3. iShares S&P/TSX 60 Index ETF (XIU:CA)
For those looking to invest in Canadian equities, the iShares S&P/TSX 60 Index ETF (XIU:CA) is a premier choice. This ETF tracks the performance of the 60 largest companies listed on the TSX.
- Stock Performance: Currently priced at CAD 38.41, XIU has delivered a 1-year capital gain of 19.47% and a total return of 22.87%. Its strong focus on Canadian blue-chip stocks provides a more localized investment option.
- Stock Target Advisor Rating: Slightly Bearish, as it has 2 positive signals and 4 negative signals. Investors are advised to monitor its high volatility and below-average dividend returns.
Read more: Dissecting the Macro Outlook of Global Markets
Conclusion:
These ETFs represent some of the best options for Canadian investors. Whether you’re looking for U.S. market exposure through VFV and ZSP or prefer to stay local with XIU, these funds deliver robust returns and stability.
According to Stock Target Advisor, each ETF has its strengths and risks, making it essential to align your choice with your investment goals and risk tolerance.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
