These days investing in ETFs can offer some major benefits. ETFs have grown extremely popular over the last decade, and today, you can find Canadian ETFs with a variety of focuses.
Whether you want to focus on a single industry, a certain area in the world, or a certain type of investment, like dividend stocks, there is an ETF for almost anything.
Here are the top four Canadian ETFs I’d be looking at buying today.
A top Canadian ETF to buy today
First and foremost, one of the top ETFs for all Canadians to consider is the iShares S&P/TSX 60 Index ETF (TSX:XIU). The XIU gives investors exposure to 60 of the top core Canadian stocks.
It’s an ideal way to gain exposure to some of the biggest and best Canadian stocks. You get great diversification owning all these businesses, but more important, you’ll get exposure to every industry.
This way, you can be invested in the top Canadian companies while only owning a passive investment vehicle. It’s a great way to buy your investments for the long term. Over time as the economy grows, these major Canadian stocks should grow too.
Plus, it pays an attractive dividend too. Currently, the fund yields nearly 3.5% and has a management expense ratio of just 0.18%.
Canadian energy ETF
Another great ETF to consider is actually one that’s been a top buy for a while now, the iShares S&P/TSX Capped Energy Index ETF (TSX:XEG).
The energy industry has been recovering rapidly over the last few months, and many stocks have seen huge gains as a result. It’s always important to own energy stocks, but even more so today because of the industry’s incredible recovery potential.
So if you don’t have energy exposure and are unsure of what stock you should buy, the XEG is a great choice offering investors exposure to the industry while diversifying the investment among many energy stocks.
The stock yields less than the XIU ETF at just 2.3%. However, it offers considerably more upside. The fund is already up 28% year to date and has a lot more room to grow.
A Bitcoin ETF is another great consideration for investors today. The top Bitcoin ETF for Canadian investors is the Purpose Bitcoin ETF (TSX:BTCC.B).
Although Bitcoin is most popular for the incredible rallies in such short periods, it’s actually more of a long-term investment.
Bitcoin and its technology are slowly picking up momentum and gaining popularity. Investors continue to recognize this, which has only added to its popularity as of late.
While this has pushed the price up, it’s also created much easier ways to gain exposure to Bitcoin, such as the Purpose Bitcoin ETF.
So if you’re looking for a high-potential growth investment to buy and hold for years, the Bitcoin ETF is one of the top Canadian investments to buy today.
S&P 500 ETF
Another top ETF for Canadian investors is the iShares Core S&P 500 Index ETF (TSX:XSP). The S&P 500 is one of the most important stock indices in the world.
Warren Buffett is an advocate for retail investors using index ETFs to their advantage. And while you should always buy more than one stock index in order to diversify, Buffett often recommends the S&P 500.
Betting on the American economy for the long term is one of the easiest ways to grow your money. And the S&P 500 gives exposure to all of the major U.S stocks.
What’s even more attractive is that the fund charges just a 0.1% management expense ratio. So if you’re looking for a top ETF to buy today, the XSP is one of the best ETFs for Canadian investors.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Daniel Da Costa has no position in any of the stocks mentioned.