Disclosure: WealthRadiant may earn a commission if you open an account through some links on this page, at no extra cost to you. We only recommend platforms that genuinely fit the article.
Canadian-listed ETF fees have dropped substantially over the past 15 years, but the picture in 2026 is more nuanced than the “race to zero” headline suggests. Some categories (S&P 500 ETFs, Canadian total market) sit near the fee floor. Others (international developed, emerging markets, all-in-one portfolios) still carry meaningful fees by index-fund standards. We pulled together a snapshot of 30 popular Canadian-listed ETFs and compared their current MERs by provider, category, and against launch-era management fees and the earliest verified MERs we could source.
For a practical example inside Vanguard’s all-in-one lineup, our VEQT vs VGRO comparison shows how the same provider and similar fee structure can still lead to a very different risk profile.
Quick verdict: Across 30 popular Canadian-listed ETFs, the average MER is 0.18% and the median is 0.14%. The cheapest funds (XIC, VCN, ZCN) charge 0.06% to track the entire Canadian stock market. The most expensive in this set (ZWB, BMO’s covered-call banks ETF) charges 0.71%. Fee compression has been most dramatic for emerging-market and bank-sector ETFs: ZEB is down 34 basis points and VEE is down roughly 30 basis points from their earliest verified MERs.
This piece is built from current Vanguard, iShares, BMO, and Global X public data, supplemented with launch management fee and earliest verified MER references where publicly documented. The full data table is at the bottom of the article. We focus on Management Expense Ratio (MER), which is the all-in cost per year as reported in each fund’s most recent Management Report of Fund Performance.
Headline numbers
| Total ETFs in this snapshot | 30 |
| Combined AUM | $204.3 billion CAD |
| Average MER | 0.18% |
| Median MER | 0.14% |
| Lowest MER | 0.06% (XIC, VCN, ZCN) |
| Highest MER | 0.71% (ZWB) |
| Funds with 30+ bps cut from early fee anchor | 2 (ZEB, VEE) |
How we picked the 30 ETFs
We focused on widely-held, broadly-recognized Canadian-listed ETFs across four major providers. The list spans the major categories most Canadian DIY investors actually use: total market, S&P 500 (hedged and unhedged), international developed, emerging markets, all-in-one portfolios, fixed income, dividend, sector, and cash management. We did not include leveraged, inverse, or single-stock ETFs. The full ticker list is in the data table below.
Data sources: Vanguard Canada, iShares Canada (BlackRock), BMO ETFs, and Global X. Current MERs are the most recent figures published by each provider as of late April 2026. Historical fee anchors are split into launch management fees and earliest verified MERs where we could source them. For older funds without a clean first-year audited MER, the comparison uses the clearest available launch-era fee reference and labels it accordingly.
Data notes: The full 30-ETF spreadsheet, including provider URLs and historical fee-anchor source notes per fund, is maintained at wealthradiant.com and available on request for verification. Direct provider product pages can be reached from each ETF’s ticker via the linked provider sites above. We did not use SEDAR+ filings (the regulator portal is not reliably scrapable), so older historical anchors rely on inception press releases, prospectuses, provider documents, and contemporaneous industry coverage.
By provider
| Provider | ETFs | Avg MER | Median MER | Min | Max | Combined AUM |
|---|---|---|---|---|---|---|
| Global X (Horizons) | 4 | 0.14% | 0.11% | 0.07% | 0.28% | $15.4B |
| iShares | 10 | 0.15% | 0.15% | 0.06% | 0.28% | $69.2B |
| Vanguard | 10 | 0.16% | 0.19% | 0.06% | 0.24% | $75.8B |
| BMO | 6 | 0.27% | 0.19% | 0.06% | 0.71% | $44.0B |
Global X comes out cheapest on average, but the comparison flatters them: their lineup is concentrated in a small set of swap-based and HISA products, three of which are in low-fee categories. iShares and Vanguard look essentially tied at the median. BMO’s higher average reflects their broader product mix, including covered-call and sector funds (ZWB, ZEB) that command premium fees compared to plain index ETFs.
By category
A more honest comparison is by category. Within the same investment category, all major providers price competitively; the spread between providers within a category is rarely more than a few basis points.
| Category | ETFs | Avg MER | Range |
|---|---|---|---|
| Canadian total market | 3 | 0.06% | 0.06% (all three identical) |
| US S&P 500 (unhedged) | 2 | 0.09% | 0.09% (VFV, ZSP tied) |
| US S&P 500 (hedged) | 2 | 0.09% | 0.09% (VSP, XSP tied) |
| US total market | 1 | 0.07% | XUU only |
| Canadian aggregate bond | 3 | 0.09% | 0.09% to 0.10% |
| All-in-one 80/20 | 2 | 0.19% | 0.17% (VGRO) to 0.20% (XGRO) |
| All-in-one 100/0 | 2 | 0.22% | 0.20% (XEQT) to 0.24% (VEQT) |
| International developed | 1 | 0.23% | XEF only |
| Emerging markets | 2 | 0.26% | 0.24% (VEE) to 0.28% (XEC) |
| Canadian banks (covered call) | 1 | 0.71% | ZWB only |
The spread between categories is striking. A Canadian total-market ETF costs 0.06% per year. A covered-call bank ETF costs over 11x more. The complexity premium for active or strategy-driven products is real, and worth understanding before paying it. For the practical choice between the two largest Canadian total-market options, see our VCN vs XIC comparison.
US large-cap equity ETFs: how Canadians buy the US market
US large-cap equity is the most fee-competitive category in this study. Six different ETFs let Canadians get US large-cap exposure, mostly tracking the S&P 500 directly (VFV, VSP, ZSP, XSP, HXS) plus XUU, which tracks the broader S&P U.S. Total Market Index (about 3,000 stocks rather than 500). All six cluster within a 3 basis-point range:
| Ticker | Name | Index | MER | AUM |
|---|---|---|---|---|
| XUU | iShares Core S&P U.S. Total Market | S&P U.S. Total Market | 0.07% | $3.2B |
| VFV | Vanguard S&P 500 Index ETF | S&P 500 | 0.09% | $27.8B |
| ZSP | BMO S&P 500 Index ETF | S&P 500 | 0.09% | $15.5B |
| VSP | Vanguard S&P 500 (CAD-Hedged) | S&P 500 (Hedged) | 0.09% | $3.1B |
| XSP | iShares Core S&P 500 (CAD-Hedged) | S&P 500 (Hedged) | 0.09% | $10.8B |
| HXS | Global X S&P 500 (Swap) | S&P 500 | 0.10% | $3.5B |
At this fee level, the difference between VFV, ZSP, VSP, and XSP is essentially noise. The choice between them comes down to other factors: do you want CAD-hedging (VSP/XSP) or unhedged exposure (VFV/ZSP)? Are you in a non-registered account where the swap-based HXS’s tax efficiency might matter? Do you want broader US exposure beyond the largest 500 companies (XUU)? For most TFSA and RRSP investors, any of them is fine. Read more on whether to concentrate in US large-cap or diversify globally in our XEQT vs VFV comparison.
All-in-one ETFs: where the premium actually sits
All-in-one ETFs (the XEQT, VEQT, XGRO, VGRO, XBAL, VBAL family) bundle multiple underlying ETFs and rebalance automatically. The convenience comes with a fee premium: roughly 12 basis points over a comparable plain S&P 500 ETF. Whether that’s worth it depends on whether you’d actually do the rebalancing yourself. Most investors won’t.
| Ticker | Provider | Allocation | MER | Mgmt Fee | AUM |
|---|---|---|---|---|---|
| VGRO | Vanguard | 80/20 Balanced | 0.17% | 0.17% | $8.5B |
| XBAL | iShares | 60/40 | 0.19% | 0.17% | $4.8B |
| XEQT | iShares | 100/0 Equity | 0.20% | 0.17% | $15.2B |
| XGRO | iShares | 80/20 Balanced | 0.20% | 0.18% | $5.5B |
| VEQT | Vanguard | 100/0 Equity | 0.24% | 0.20% | $9.1B |
| VBAL | Vanguard | 60/40 | 0.24% | 0.22% | $3.6B |
Vanguard cut VGRO’s management fee from 0.22% to 0.17% in November 2025, dropping it below the iShares equivalent. That kind of mid-product-life fee cut is rare in this space. For more on the all-in-one tradeoff, see our XEQT vs VFV comparison and XGRO vs XBAL.
Top movers from early fee anchors
Where has fee compression actually happened? The biggest absolute drops are concentrated in older sector, emerging-market, bond, and total-market index ETFs. To avoid overstating the history, this section uses an early fee anchor: either the launch management fee or the earliest verified MER we could source for that fund.
- XBAL and XGRO are excluded from the old predecessor-fund comparison. Their tickers existed before iShares restructured them in October 2018 into the modern Core ETF Portfolio family. Comparing the predecessor fund’s ~0.84% MER to today’s 0.19%/0.20% would imply a continuous fee cut, but the old and new products are structurally different funds that share a ticker. We use the post-2018 baseline only.
- The all-in-one ETFs launched competitively. XEQT, VEQT, VGRO, and VBAL all debuted in 2018-2019 at fees close to where they sit today. Most have not had much room to drop further.
| Rank | Ticker | Category | Anchor used | 2026 MER | Change |
|---|---|---|---|---|---|
| 1 | ZEB | Canadian Banks | 0.62% earliest verified MER | 0.28% | -34 bps |
| 2 | VEE | Emerging Markets | 0.54% earliest verified MER | 0.24% | -30 bps |
| 3 | ZAG | Canadian Aggregate Bond | 0.30% earliest verified MER | 0.09% | -21 bps |
| 4 | XBB* | Canadian Aggregate Bond | 0.30% earliest verified MER | 0.10% | -20 bps* |
| 5 | XSB* | Canadian Short-Term Bond | 0.30% earliest verified MER | 0.10% | -20 bps* |
| 6 | XIC | Canadian Total Market | 0.25% earliest verified MER | 0.06% | -19 bps |
| 7 | VAB | Canadian Bond | 0.26% earliest verified MER | 0.09% | -17 bps |
| 8 | XSP | S&P 500 (Hedged) | 0.25% earliest verified MER | 0.09% | -16 bps |
| 9 | VDY | Canadian Dividend | 0.35% earliest verified MER | 0.22% | -13 bps |
| 10 | ZCN | Canadian Total Market | 0.17% earliest verified MER | 0.06% | -11 bps |
* XBB and XSB launched in November 2000 as single-bond ETFs (tracking a specific 10-year and 5-year Government of Canada bond). They were restructured into aggregate-bond and short-term-bond index ETFs in 2004 and 2005. Like XBAL and XGRO, the comparison between their early fee anchors and 2026 reflects products whose structures changed over time. Treat older deltas as directional rather than precise audited history.
XEQT is a small counter-example. It launched in 2019 at a 0.18% management fee. The headline iShares management fee is now 0.17%, slightly lower than launch. The 0.20% MER you see today is the management fee plus operating expenses, GST/HST, and the proportionate operating costs of the underlying iShares ETFs the portfolio holds. So the comparison depends on whether you’re looking at management fee (slightly down) or all-in MER (slightly up).
What this means for your portfolio
Take a $50,000 portfolio held for 25 years at a 6% nominal annual return. At a 0.20% MER (typical all-in-one), you’d pay roughly $5,000 to $9,000 in compounding fees. At a 0.06% MER (Canadian total market like XIC), the same portfolio pays roughly $1,500 to $2,700 over the same period. The difference of $3,000 to $6,000 is the cost of the all-in-one’s convenience and rebalancing service. (These figures are illustrative; your actual costs depend on contributions, returns, and timing.)
That doesn’t mean cheap is always better. The all-in-one ETFs are designed for set-and-forget investing. If paying 12 basis points more means you actually stick to your plan and don’t panic-sell during a market drop, that’s easily worth it. The cheaper alternative requires you to rebalance yourself, which most investors don’t consistently do.
Honest caveats
A few caveats on the data:
- MER vs management fee: these are different. The management fee is what the provider charges directly. MER is the total cost including operating expenses, GST/HST, and underlying-fund costs. We focus on MER throughout because it’s the all-in number that affects your returns.
- Historical fee anchors vary in quality. Current MERs are from each provider’s most recent factsheet or product page. Older historical anchors are split into launch management fees and earliest verified MERs because many ETFs did not have a clean audited MER on launch day. The specific values for VFV, XEQT, and the all-in-one ETFs are well-documented. VEE’s earliest verified MER is 0.54% (per the November 2013 fact sheet, the earliest accessible Vanguard Canada document for the fund). Values for older funds, especially the 2000-2009 cohort and BMO sector ETFs, are reconstructed from industry references and were not all directly verified in regulator-filed documents at time of writing. Treat older deltas as directional and verify before citing.
- XBAL, XGRO, XBB, and XSB are special cases. Their tickers predate structural changes that materially altered each fund’s product profile. XBAL and XGRO were restructured in October 2018 from older fund-of-funds vehicles. XBB and XSB launched in November 2000 as single-bond ETFs (specific 10-year and 5-year Canada bonds) and were restructured into aggregate and short-term bond index ETFs in 2004 and 2005. The early-anchor-to-2026 deltas for these tickers reflect products whose structures changed over time and should be read as directional rather than precise.
- XIC had a methodology change in November 2005. The pre-2005 investment objective was different from the current S&P/TSX Capped Composite tracking, so the early-anchor-to-2026 fee delta reflects a slightly different mandate at the historical starting point.
- XSP has had multiple discrete fee reductions over its life. The headline early-anchor-vs-2026 delta hides a series of step-changes (most recently January 2023, when iShares cut the management fee from 0.09% to 0.08%).
- AUM is point-in-time (April 2026) and changes daily. The MER comparisons are stable over a year; the AUM comparisons are not.
- This is not a recommendation list. The cheapest ETF in a category isn’t automatically the best fit for your portfolio. Tax treatment, currency hedging, account type, and your actual investment goals all matter.
- The 30-ETF universe is broad but not exhaustive. We didn’t include leveraged, inverse, single-stock, or many smaller niche funds.
Where to buy these ETFs
All 30 ETFs in this study are listed on the Toronto Stock Exchange and are available through any Canadian brokerage. Trading costs vary: some platforms charge commissions on every ETF trade, others offer commission-free buying for Canadian-listed ETFs. For Canadian DIY investors, Wealthsimple and Questrade are the two most common picks. Questrade in particular offers commission-free Canadian-listed ETF buys plus separate CAD and USD account balances. Open a Questrade account if it fits your investing style. Bonus offers can change, and this is an affiliate link.
The full data table
All 30 ETFs ranked by current MER (ascending). The table separates launch management fee from earliest verified MER. The Δ column shows current MER minus the historical fee anchor used for that fund. XBAL and XGRO use a post-2018-restructure baseline rather than predecessor-fund figures.
| Ticker | Name | Provider | Category | MER | Mgmt Fee | AUM (CAD B) | Launch Mgmt Fee | Earliest Verified MER | Δ vs Anchor |
|---|---|---|---|---|---|---|---|---|---|
| VCN | Vanguard FTSE Canada All Cap Index ETF | Vanguard | Canadian Total Market | 0.06% | 0.05% | $5.8B | 0.12% | -6 bps | |
| XIC | iShares Core S&P/TSX Capped Composite Index ETF | iShares | Canadian Total Market | 0.06% | 0.05% | $15.3B | 0.25% | -19 bps | |
| ZCN | BMO S&P/TSX Capped Composite Index ETF | BMO | Canadian Total Market | 0.06% | 0.05% | $8.9B | 0.15% | 0.17% | -11 bps |
| XUU | iShares Core S&P U.S. Total Market Index ETF | iShares | US Total Market | 0.07% | 0.07% | $3.2B | 0.07% | +0 bps | |
| HXT | Global X S&P/TSX 60 Index Corporate Class ETF | Global X (Horizons) | Canadian Large Cap Swap | 0.07% | 0.04% | $3.8B | 0.07% | +0 bps | |
| VFV | Vanguard S&P 500 Index ETF | Vanguard | US Equity (S&P 500) | 0.09% | 0.08% | $27.8B | 0.15% | -6 bps | |
| VSP | Vanguard S&P 500 Index ETF (CAD-Hedged) | Vanguard | US Equity (S&P 500 Hedged) | 0.09% | 0.08% | $3.1B | 0.15% | -6 bps | |
| VAB | Vanguard Canadian Aggregate Bond Index ETF | Vanguard | Canadian Bond | 0.09% | 0.08% | $4.9B | 0.20% | 0.26% | -17 bps |
| XSP | iShares Core S&P 500 Index ETF (CAD-Hedged) | iShares | US Equity (S&P 500 Hedged) | 0.09% | 0.08% | $10.8B | 0.25% | -16 bps | |
| ZSP | BMO S&P 500 Index ETF | BMO | US Equity (S&P 500) | 0.09% | 0.08% | $15.5B | 0.10% | 0.15% | -6 bps |
| ZAG | BMO Aggregate Bond Index ETF | BMO | Canadian Bond | 0.09% | 0.08% | $10.2B | 0.20% | 0.30% | -21 bps |
| XBB | iShares Core Canadian Universe Bond Index ETF | iShares | Canadian Bond | 0.10% | 0.09% | $5.5B | 0.30% | -20 bps | |
| XSB | iShares Core Canadian Short Term Bond Index ETF | iShares | Canadian Short-Term Bond | 0.10% | 0.09% | $2.4B | 0.30% | -20 bps | |
| HXS | Global X S&P 500 Index Corporate Class ETF | Global X (Horizons) | US Equity (S&P 500 Swap) | 0.10% | 0.09% | $3.5B | 0.10% | +0 bps | |
| CASH | Global X High Interest Savings ETF | Global X (Horizons) | Cash/HISA | 0.11% | 0.10% | $6.7B | 0.10% | +1 bps | |
| VGRO | Vanguard Growth ETF Portfolio | Vanguard | All-in-One 80/20 Balanced | 0.17% | 0.17% | $8.5B | 0.22% | 0.25% | -8 bps |
| XBAL | iShares Core Balanced ETF Portfolio | iShares | All-in-One 60/40 | 0.19% | 0.17% | $4.8B | 0.17% | 0.20% | -1 bps |
| VXC | Vanguard FTSE Global All Cap ex Canada Index ETF | Vanguard | Global ex-Canada Equity | 0.20% | 0.18% | $4.2B | 0.27% | -7 bps | |
| XEQT | iShares Core Equity ETF Portfolio | iShares | All-in-One 100/0 Equity | 0.20% | 0.17% | $15.2B | 0.18% | +2 bps | |
| XGRO | iShares Core Growth ETF Portfolio | iShares | All-in-One 80/20 Balanced | 0.20% | 0.18% | $5.5B | 0.18% | 0.20% | +0 bps |
| VDY | Vanguard FTSE Canadian High Dividend Yield Index ETF | Vanguard | Canadian Dividend Equity | 0.22% | 0.20% | $6.7B | 0.30% | 0.35% | -13 bps |
| XEF | iShares Core MSCI EAFE IMI Index ETF | iShares | International Developed | 0.23% | 0.20% | $4.5B | 0.30% | -7 bps | |
| VEQT | Vanguard All-Equity ETF Portfolio | Vanguard | All-in-One 100/0 Equity | 0.24% | 0.20% | $9.1B | 0.22% | 0.25% | -1 bps |
| VBAL | Vanguard Balanced ETF Portfolio | Vanguard | All-in-One 60/40 | 0.24% | 0.22% | $3.6B | 0.22% | 0.25% | -1 bps |
| VEE | Vanguard FTSE Emerging Markets All Cap Index ETF | Vanguard | Emerging Markets | 0.24% | 0.22% | $2.1B | 0.54% | -30 bps | |
| XEC | iShares Core MSCI Emerging Markets IMI Index ETF | iShares | Emerging Markets | 0.28% | 0.25% | $2.0B | 0.35% | -7 bps | |
| ZEB | BMO Equal Weight Banks Index ETF | BMO | Canadian Banks | 0.28% | 0.25% | $3.5B | 0.55% | 0.62% | -34 bps |
| HXQ | Global X Nasdaq-100 Index Corporate Class ETF | Global X (Horizons) | US Tech (Nasdaq 100 Swap) | 0.28% | 0.25% | $1.4B | 0.25% | 0.28% | +0 bps |
| ZQQ | BMO Nasdaq 100 Equity Index ETF (CAD-Hedged) | BMO | US Tech (Nasdaq 100 Hedged) | 0.39% | 0.35% | $3.1B | 0.35% | 0.39% | +0 bps |
| ZWB | BMO Covered Call Canadian Banks ETF | BMO | Canadian Banks Covered Call | 0.71% | 0.65% | $2.8B | 0.65% | 0.74% | -3 bps |
Blank cells mean a clean source was not used for that specific historical column. The Δ column uses the historical fee anchor for each ETF, which may be the launch management fee, earliest verified MER, or a post-restructure baseline. Tip: this table scrolls horizontally on narrow screens.
Final verdict
Canadian ETF fees have dropped meaningfully since 2010, but the picture in 2026 is one of fee compression at the floor (the cheapest funds are at 0.06%) and stability at the all-in-one level (most haven’t moved much because they launched competitively). The most fee-competitive categories are Canadian total market, S&P 500, and Canadian aggregate bonds. The least fee-competitive are sector and strategy ETFs (covered call, equal-weight, niche themes), where the active overlay commands a real premium.
For most Canadian DIY investors, the practical takeaway is simpler than this article suggests: pick a category that fits your goal, then choose any of the major-provider options. The fee differences within a category are too small to matter; the choice between categories is what actually drives long-term cost.
If you want the editorial picks across each category rather than just the cost data, see our companion Best Canadian ETFs guide.
This is general information, not personalized financial advice. ETF MERs change over time. Verify current fees with the provider before investing.
Data checked and update history
Data checked as of: April 30, 2026 for the 30-ETF MER snapshot. AUM, yields, distributions, holdings, and provider product details can change more frequently than MERs.
Methodology note: The 30-fund sample is meant to represent popular Canadian-listed ETFs across major providers and categories, not every ETF in Canada. Current MERs are drawn from provider pages or documents; historical fee anchors are labelled separately because old launch fees, early MERs, and post-restructure baselines are not always comparable.
Sources checked
Update history
- June 3, 2026: Added a clearer data-checked note, source list, and update-history section.
- May 31, 2026: Refined caveats and internal links after follow-up review.
- April 30, 2026: Compiled the 30-ETF MER dataset and historical fee-anchor notes.
FAQ
What is the cheapest Canadian ETF?
In this 30-fund snapshot, three Canadian total market ETFs are tied at 0.06%: XIC, VCN, and ZCN. They all track essentially the same Canadian large-cap index. For practical purposes the choice between them is a coin flip.
What is the average MER of a Canadian ETF in 2026?
In our 30-fund snapshot the simple average MER is 0.18% and the median is 0.14%. The average is pulled higher by sector and strategy ETFs (covered-call funds in particular). This is an unweighted average across our sample, not an AUM-weighted figure.
Has Canadian ETF fee compression stopped?
Mostly, yes. The big absolute drops happened between 2012 and 2018 for index ETFs. Since 2020 most flagship ETFs have held their MERs roughly flat. Recent exceptions include Vanguard’s VGRO management fee cut in November 2025 (0.22% to 0.17%) and slight upward drift on some international and emerging-market ETFs.
Why is XEQT’s MER higher than its launch management fee?
XEQT launched in 2019 at a 0.18% management fee. The headline iShares management fee is now 0.17%, slightly lower than launch. The 0.20% MER you see today is the management fee plus operating expenses, GST/HST, and the proportionate operating costs of the underlying iShares ETFs the portfolio holds. So the comparison depends on whether you’re looking at management fee (slightly down) or all-in MER (slightly up).
Should I always pick the lowest-MER ETF?
No. The cheapest ETF in a category isn’t automatically the right fit. Currency hedging (VFV vs VSP), tax efficiency (HXS’s swap structure in non-registered accounts), liquidity, and personal investment goals all matter. A 5 basis-point fee difference is small enough that other factors usually dominate.
How does this compare to mutual funds?
Canadian equity mutual funds have historically charged meaningfully higher fees than ETFs, with active funds commonly running in the 1% to 2%+ MER range per industry studies. The cheapest ETFs in this study charge 0.06%. Over multi-decade investing horizons those fee differences compound to substantial differences in final portfolio value, though the exact gap depends on assumed return rate and time horizon. For more on how fees compound, see our guide to what MER means.
Last updated: April 30, 2026
