When Canadians begin in search of exchange-traded funds (ETFs) to purchase, many of the consideration often goes to the identical handful of funds.
Broad market ETFs that observe the S&P 500 or the TSX are likely to dominate the dialog, and for good purpose. They provide easy diversification and broad publicity to the whole market, making them best for a buy-and-hold technique.
Nonetheless, as a result of these ETFs get a lot consideration, there are numerous different high-quality Canadian ETFs that may provide distinctive benefits however usually get neglected.
Coming into 2026, markets have been already buying and selling close to highs in lots of areas. On the identical time, uncertainty round rates of interest, geopolitical tensions, the continuing battle in Iranand now rising oil costs have considerably elevated volatility.
That’s why within the present atmosphere, Canadian traders can profit from trying past the obvious ETFs and contemplating funds that present defensive traits, dependable earnings, or publicity to sectors that will nonetheless have room to get better.
So, with that in thoughts, for those who’re in search of high-quality Canadian ETFs you can purchase with confidence on this atmosphere, listed here are three high picks which might be usually neglected by traders.
Supply: Getty Photos
The proper Canadian ETF that risk-averse traders should purchase proper now
When you’re anxious about rising oil costs and the uncertainty it may trigger in each the inventory market and financial system, one ETF that usually flies below the radar however could be notably helpful for traders is BMO Low Volatility Canadian Fairness ETF (TSX:ZLB).
As its title suggests, the fund focuses on choosing Canadian shares which have decrease volatility in comparison with the broader market.
So, moderately than merely monitoring the TSX like a easy index fund, the ZLB ETF provides publicity to shares with extra steady value actions.
Due to this fact, traders nonetheless have publicity to high-quality Canadian shares; nonetheless, they’re companies that are likely to expertise smaller swings throughout corrections or pullbacks.
That may be notably precious in at the moment’s atmosphere. With the continuing uncertainty in regards to the battle in Iran and rising vitality costs creating potential volatility within the broader market, many traders are in search of methods to remain invested whereas decreasing danger.
It’s additionally value noting that decrease volatility shares are sometimes among the most secure and most defensive companies you may personal, making the ZLB some of the dependable ETFs to purchase proper now.
A high ETF provide Canadians publicity to the true property sector
Along with the ZLB ETF, one other high-quality ETF many Canadians are overlooking proper now could be iShares S&P/TSX Capped REIT Index ETF (TSX:XRE)
The XRE focuses particularly on Canadian actual property funding trusts (REITs), providing traders publicity to a diversified portfolio of property all throughout the nation. These embody residential properties, retail centres, workplace buildings, industrial amenities, and extra.
One of many largest benefits of XRE is that it provides on the spot diversification throughout a number of actual property subsectors. As a substitute of attempting to select particular person REITs, traders can acquire publicity to the whole sector with a single ETF.
Moreover, many REITs noticed their share costs pressured lately as increased rates of interest elevated borrowing prices and decreased investor urge for food for income-focused property.
Due to this fact, proper now, whereas there’s nonetheless worth within the sector and with the XRE ETF providing a pretty yield of 4.85%, it’s simply the most effective Canadian ETFs to purchase now.
A high decide for dividend traders
When you’re a dividend investor primarily centered on boosting your passive earnings, the most effective Canadian ETFs to purchase now is perhaps BMO Coated Name Utilities ETF (TSX: ZWU).
Proudly owning an ETF of utility shares is good, since they’re sometimes identified for producing steady money circulation and paying dependable dividends. Along with utility shares, although, the ZWU might also spend money on telecommunications or pipeline firms with comparable defensive operations.
The vast majority of the fund is invested in utility shares, although among the most defensive shares available in the market. On high of that, although, the ETF additionally makes use of a lined name technique to reinforce earnings.
That implies that by writing lined calls on a portion of its holdings, the fund collects possibility premiums which might be then distributed to traders alongside the dividends generated by the underlying shares, considerably boosting the ETF’s general yield, which at the moment sits at roughly 6.9%.
So, for those who’re a dividend investor in search of a dependable high-yield Canadian ETF to purchase, the ZWU is undoubtedly a best choice.