ETFs in Canada: XEQT, VEQT, and the All-in-One Revolution
An ETF, or Exchange-Traded Fund, is a type of investment fund that trades on the Toronto Stock Exchange (TSX) — just like a regular share — but holds a collection of assets inside it, giving you instant exposure to hundreds or thousands of investments in a single purchase.
2 min read · Updated June 2026
ETFs have revolutionised Canadian investing. Before their rise, most Canadians invested through bank-sold mutual funds charging MERs of 2.0-2.5% — among the highest in the developed world. Today, all-in-one ETFs like XEQT (iShares, 0.20% MER) and VEQT (Vanguard, 0.24% MER) provide global diversification at a fraction of the cost.
Why have ETFs become the default? Three reasons: cost, simplicity, and diversification. A single purchase of XEQT gives you exposure to roughly 9,000 stocks across Canada, the US, Europe, Asia, and emerging markets — for less than $3/year on a $1,000 investment.
Popular Canadian ETFs include: XEQT and VEQT (all-equity global), VGRO and XGRO (80% equity / 20% bonds), VBAL and XBAL (60/40 balanced), VCN (Canadian equity), VFV (S&P 500 in CAD), and ZAG (Canadian aggregate bonds). These can be purchased commission-free on Wealthsimple or Questrade.
ETFs are suitable for investors at every stage — from a student investing their first $100 in a TFSA through Wealthsimple to a retiree building a dividend income portfolio inside an RRIF. The barrier to entry is the price of a single unit, often $20-$35.
The main risk is that ETFs do not protect against market downturns. If the index they track falls, your ETF falls with it. This is expected and normal — but requires a long-term mindset and the discipline to continue investing during bear markets.
Richify's AI agents walk you through the most relevant Canadian ETFs for your risk profile, account type, and goals — cutting through thousands of options on the TSX.
