Rankings Updated 2026
Best ETFs to Buy in 2026
Top 10 ETFs ranked for long-term investors — US market, global diversification, dividend income, bonds, and Canada
The gold standard for US equity exposure. Holds virtually every publicly traded US company (~3,700 stocks) at the lowest possible cost. Perfect core holding for any long-term investor.
Best for: Long-term investors wanting total US market coverage at minimal cost
Tracks the 500 largest US companies. Warren Buffett's recommended vehicle for most investors. Nearly identical performance to VTI over long periods. 0.03% expense ratio ties for lowest in its class.
Best for: Investors who want pure S&P 500 exposure — Buffett's recommended choice
Own the entire global stock market in one fund — ~9,500 stocks across 50 countries. The simplest possible portfolio for true diversification. Captures all of global economic growth.
Best for: Set-it-and-forget-it investors who want maximum diversification in one fund
Tracks the Nasdaq-100, dominated by tech and growth companies (Apple, Microsoft, Nvidia, Amazon, Meta). Higher historical returns than the S&P 500 but with more volatility. Best as a complement, not standalone.
Best for: Growth-oriented investors comfortable with tech concentration and higher volatility
The best dividend ETF available — 0.06% expense ratio, 3.5%+ yield, focus on quality dividend growers. Dividend has grown every year since inception. Includes Coca-Cola, Verizon, Home Depot.
Best for: Income investors wanting quality dividend growth at very low cost
The core bond holding for a balanced portfolio. Tracks the entire US investment-grade bond market. Provides ballast during equity bear markets and stable income.
Best for: Conservative investors or as the bond portion of a 60/40 balanced portfolio
Exposure to fast-growing economies: China, India, Brazil, Taiwan. Higher long-term growth potential than developed markets, with higher volatility. Best held as 5–15% of equity portfolio.
Best for: Investors seeking diversification into high-growth developing economies
Diversified real estate exposure through publicly traded REITs. Covers residential, commercial, industrial, healthcare, and data center properties. Inflation hedge + income without being a landlord.
Best for: Real estate exposure without the landlord headaches — best inside an IRA or TFSA
Canada's best one-ticket portfolio solution. Holds ~9,500 global stocks across 50+ countries, automatically rebalanced. Available on TSX in CAD. Perfect for TFSA and RRSP.
Best for: Canadian investors wanting global equity diversification in one TFSA/RRSP-friendly fund
High monthly income through a covered-call strategy on S&P 500 stocks. ~7% annual yield paid monthly — appealing for retirees. Trade-off: capped upside in strong bull markets.
Best for: Retirees and income-focused investors who want high monthly cash distributions
Frequently Asked Questions
What is the best ETF for beginners in 2026?
VTI or VOO are ideal for beginners — broad diversification, 0.03% expense ratio, and strong long-term returns tracking the US market. For global diversification in a single fund, VT (0.07%) is the simplest option.
What is the best ETF for dividend income?
SCHD (Schwab US Dividend Equity ETF) is widely considered the best — 3.5%+ yield, 0.06% expense ratio, focus on quality companies with growing dividends. JEPI offers higher yield (~7%) via a covered-call strategy that caps upside.
What is the best ETF for Canadian investors?
XEQT and VEQT are excellent one-ticket global equity portfolios listed on the TSX. For a balanced approach, XBAL or VBAL (60/40) are ideal. Canadian dividend investors should look at XDV.
How is expense ratio calculated?
The expense ratio is the annual fee charged by the fund. A 0.03% expense ratio on $100,000 costs $30/year. A 1.0% expense ratio costs $1,000/year. The compounding difference over 30 years can exceed $200,000.
Should I hold ETFs in a taxable account or retirement account?
Broad index ETFs (VTI, VOO) are very tax-efficient and work in either. REITs (VNQ) and high-yield income ETFs (JEPI) are best inside tax-advantaged accounts (IRA, 401k, TFSA, RRSP) since distributions are fully taxable.