Some of the best investments you can make for your portfolio are high-quality ETFs. Because ETF investing is so popular these days, there are always opportunities to buy some of the best Canadian ETFs.
There are ETFs representing the market as a whole, specific industries, or even specific types of investments, such as growth or dividend stocks.
And because they offer so much flexibility, ETFs can be a useful tool for investors. You can own them alongside some of your stocks, or some investors even choose to invest only in ETFs.
Whatever you decide to do, here are three of the top Canadian ETFs to buy now.
An ETF offering gold exposure
Some of the cheapest stocks to buy on the market right now are gold stocks. Therefore one of the top Canadian ETFs to consider today is iShares S&P/TSX Global Gold Index ETF (TSX:XGD).
Gold can play an important role in your portfolio. However, for most investors, it will only be a small portion of your holdings. This can make it difficult to diversify in the sector. It’s especially difficult, as these stocks can have a significant amount of execution risk; mining for gold isn’t always straightforward.
And because gold is cheap, this is one of the best Canadian ETFs to buy now. You can get great exposure to the highest-quality gold stocks in Canada.
By diversifying your investments in the space, your long-term potential won’t be impacted, but your risk will be reduced severely. Essentially, all you have to consider when investing in the ETF is whether or not gold prices are increasing or not.
So, if you buy it for the long term, especially while it’s this cheap, it could just be one of the best Canadian ETF investments you make.
A top Canadian real estate ETF
Another high-quality ETF to consider today is iShares S&P/TSX Capped REIT Index ETF (TSX:XRE). The XRE offers Canadians exposure to some of the best REITs in Canada, making it a top ETF to buy now.
Among some of the largest holdings are residential, retail, industrial, and even mixed-use REITs. So, you get total exposure to the Canadian real estate industry, offering significant diversification.
And because you have such a large number of REITs in the fund, you get exposure to various strategies. For example, some REITs will offer a tonne of growth, with only a small dividend yield, and vice versa.
So, you get the best of both worlds with an investment in XRE. It offers a tonne of capital gains potential in the long run coupled with a monthly dividend that yields nearly 3%, making it one of the best Canadian ETFs to buy today.
The best ETF to buy right now could be an index fund
Lastly, you could always consider adding an index fund to your portfolio. Warren Buffett actually recommends that most retail investors utilize index funds, as they are some of the best Canadian ETFs you can buy.
There are a few to consider whether you want exposure to Canada, the United States, or elsewhere. One of the best ETFs to buy if you want exposure to Canada is iShares S&P/TSX 60 Index ETF (TSX:XIU).
Index ETFs are a great way to gain exposure to the broader market while paying little commissions and management fees by buying a single investment.
One of the main reasons Warren Buffett recommends using index funds is because stock picking can be so difficult. This is why it might be one of the best Canadian ETFs to buy today in these current market conditions.
And an ETF tracking the TSX 60 index is attractive, because it includes 60 of the largest and most dominant stocks in Canada from each of the 10 major sectors. This is a great way to gain exposure to Canadian stocks, especially if you’re looking for a long-term investment.
So, if you’re considering an investment in an ETF today, buying an index fund like the XIU is always a great choice.
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. The Motley Fool has no position in any of the stocks mentioned.