The 10 Best ETFs in Canada to Buy and Hold Forever (2026)
The best ETFs to buy and hold forever in Canada are broad, cheap, and a little boring: all-in-one funds like XEQT and VEQT, an S&P 500 fund like VFV, and a whole-market Canadian fund like XIC. Pick one or two, keep your costs near zero, and hold them for decades.
What makes an ETF worth holding forever?
A forever ETF is not the one with the best recent returns. It is the one you can hold through every crash, every rate cycle, and every news panic without second-guessing it. Four things matter.
Broad diversification. It should own hundreds or thousands of companies, not a single theme or sector.
A low MER. The management expense ratio is the annual fee, and over thirty years even a half-percent gap costs real money.
A durable index. It should track a major, rules-based index that will still exist in 2050, not a trendy strategy that may not.
Scale and a serious provider. Large funds from Vanguard, BlackRock (iShares), and BMO are liquid, cheap, and unlikely to be wound down. Notice what is missing: a hot tip, a forecast, or a sector bet. Holding forever is a structure decision, not a stock pick.
The 10 best ETFs in Canada to buy and hold forever
Here are ten funds that fit those rules, grouped by what they actually do. They are not ranked one to ten, because the right choice depends on whether you want a single fund or several building blocks. The table lays out the holdings and fees side by side.
Best all-in-one ETFs: XEQT, VEQT, and VGRO
If you only ever buy one ETF, make it one of these. XEQT and VEQT each hold roughly 100 percent global stocks across thousands of companies and rebalance themselves automatically. They are close to identical, and the main differences are the provider and small details in fees and distributions. The Vanguard funds recently got cheaper. Vanguard cut the management fee on VEQT and VGRO to 0.17 percent effective November 18, 2025, though the published MER still reflects the older fee until the next fiscal year end. VGRO is the same idea with a seatbelt: about 80 percent stocks and 20 percent bonds. The bonds drag returns slightly in booms but cushion the drops, which makes it easier to actually stay invested. For most hands-off investors, one of these three funds is the entire portfolio.
Best S&P 500 ETFs: VFV and ZSP
VFV and ZSP both track the S&P 500, the 500 largest United States companies, for an identical 0.09 percent MER. They are functionally the same fund from two providers. Pick whichever your broker offers commission-free, or hold one in each account if you ever want to tax-loss harvest between them. The catch with a pure S&P 500 fund is that it is 100 percent United States and heavily weighted toward a handful of technology giants. As a long-term holding it has been excellent, but it is not diversified the way an all-in-one fund is. Many Canadians pair it with a Canadian fund and an international fund rather than holding it alone.
Best total US market ETF: XUU
If you want the United States but think the S&P 500 is too narrow, XUU holds the entire United States market, large, mid, and small cap, for about 0.07 percent. It is broader than VFV or ZSP and slightly cheaper. The trade-off is modest: small and mid caps add little when the index is already dominated by mega caps, so the real-world difference versus an S&P 500 fund is small.
Best Canadian market ETF: XIC
XIC owns the broad Canadian market, around 220 companies, for roughly 0.06 percent, the lowest fee on this list. Holding your home market matters for Canadians: it carries no currency risk, and eligible Canadian dividends are taxed more favourably than foreign income in a non-registered account. XIC is the simplest way to own all of Canada in one ticker.
Best global ETF outside Canada: XAW
XAW is the natural partner to XIC. It holds everything except Canada, the United States, international developed markets, and emerging markets, in one fund for about 0.22 percent. Buy XIC and XAW together and you have built your own globally diversified portfolio with full control over how much Canada you hold. It is the classic two-fund solution for investors who want slightly more control than an all-in-one fund gives.
Best Canadian dividend and bank ETFs: VDY and ZEB
VDY holds about 50 higher-yielding Canadian dividend payers for 0.22 percent and pays income monthly, which appeals to investors who like seeing cash arrive. ZEB owns the Big Six Canadian banks in equal weight for 0.28 percent. Both have rewarded long-term holders, but be honest about what they are: concentrated bets. VDY leans heavily into financials and energy, and ZEB is banks and nothing else. They work as a satellite around a broad core, not as your only fund.
How many of these ETFs do you actually need?
Probably just one or two. The single biggest mistake new investors make is collecting overlapping funds. VFV, ZSP, and XUU are nearly the same bet, and an all-in-one fund already contains the United States, Canada, and international markets inside it. Owning five funds that overlap does not make you more diversified, it just makes rebalancing harder. A sensible forever portfolio takes one of three shapes: a single all-in-one fund (XEQT, VEQT, or VGRO) and nothing else, a two-fund mix of XIC and XAW, or a three-fund build that splits Canada, the United States, and international yourself. Add a dividend or bank fund only if you specifically want that tilt and understand the concentration.
The chart shows why fees alone should not drive the decision. The cheapest fund here is Canada-only, and the all-in-one funds cost more precisely because they handle the global diversification and rebalancing for you. For most people that convenience is worth the extra few basis points.
Where should you buy these ETFs?
None of this works if trading fees eat your savings. A 0.06 percent MER means little if you pay 9.99 dollars every time you buy. Use a broker that charges no commission on ETF purchases. Wealthsimple trades stocks and ETFs commission-free and supports fractional shares, which makes it easy to invest small amounts on a schedule, exactly what a buy-and-hold plan needs. Questrade also offers commission-free ETF buys with a fuller research toolkit, and for a bank-owned option with strong service, Qtrade is worth a look. Compare them on our broker comparison tool, see the details in our Wealthsimple review and Questrade review, and read how we weigh each one in our guide to choosing a Canadian online broker. Check for current account offers on our sign-up bonuses page before you fund the account.
Are these ETFs better in a TFSA or an RRSP?
For most Canadians the order is simple: fill your TFSA first, then your RRSP, then a non-registered account. Inside a TFSA, all growth and eligible Canadian dividends are tax-free, which is exactly where a forever holding belongs. The Canada Revenue Agency sets the annual contribution limits, so check your room before contributing. One wrinkle: these are all Canadian-listed funds, so the United States and international dividends inside them face a foreign withholding tax that is hard to recover in a TFSA. The drag is small, often around a tenth of a percent, and not a reason to avoid global funds. An RRSP can reduce that drag in some cases, but for most investors the simplicity of holding Canadian-listed funds everywhere outweighs the tiny saving.
The bottom line
Stop hunting for the perfect ETF. The honest answer is that one all-in-one fund, XEQT or VEQT, held for thirty years across your TFSA and RRSP, will beat almost every clever portfolio you could assemble, mostly because it removes the temptation to tinker. If you want a little control, build XIC plus XAW and set your own Canada weighting. Everything else on this list is a refinement, not a requirement. Choose your structure, automate your contributions, and then do the hardest part: nothing. Broker Guide Canada may earn a commission through affiliate links. This does not influence our editorial rankings. See our full disclosure.
FAQs
What is the single best ETF to buy and hold in Canada?
For most people it is an all-in-one fund like XEQT or VEQT. One purchase gives you thousands of companies across Canada, the United States, and the rest of the world, rebalanced automatically, for around 0.20 percent a year. It is the closest thing to a complete forever portfolio in a single ticker.
Is VEQT or XEQT better for long-term investing?
They are close to interchangeable. Both hold roughly 100 percent global stocks and rebalance themselves. XEQT has carried a slightly lower published MER, while Vanguard cut VEQT's management fee to 0.17 percent in late 2025. Pick whichever your broker offers commission-free and avoid switching back and forth, since that just triggers trading costs and taxable events.
Can I just hold VFV forever?
You can, and many Canadians do, but understand the trade-off. VFV is 100 percent United States large cap and concentrated in a few technology giants. It has been a strong holding, but it leaves out Canada, international developed markets, and emerging markets. Pairing it with a Canadian and an international fund, or simply using an all-in-one fund, gives you broader diversification.
Which ETF on this list has the lowest fee?
XIC, the broad Canadian market fund, at about 0.06 percent. XUU is close behind at 0.07 percent, and the S&P 500 funds VFV and ZSP sit at 0.09 percent. The all-in-one funds cost more because they handle global diversification and rebalancing for you.
Do I pay tax on ETFs held in a TFSA?
Canadian dividends and capital gains inside a TFSA are completely tax-free. The one exception is foreign income: the United States and international dividends inside these funds face a withholding tax that cannot be recovered in a TFSA. The drag is small, usually around a tenth of a percent, and not a reason to avoid global funds.
How much does it cost to buy these ETFs?
The fund fee is built into the unit price, but your broker may charge a trading commission on top. Several Canadian brokers, including Wealthsimple and Questrade, charge no commission to buy ETFs, which is what you want for regular buy-and-hold investing. Always confirm the current commission and any account offers before you start.
