The 3 Best ETFs for High Growth in Canada

For long-term growth, a reliable, high-growth ETF is an easy investment choice. It saves a lot of time you would have to spend on diversification and portfolio balancing with stocks.

ETF chart stocks

Image source: Getty Images

Unlike dividend-based, passive-income portfolios that you can set and forget, the growth side of your portfolio requires tweaking and updating. That’s especially true for short-term growth or stocks/assets that offer occasional spikes or seasonal growth. If you don’t rebalance and adjust your portfolio accordingly, you may not be able to capture most of the upside.

However, if you want reliable growth with minimal involvement, there are a few buy-and-forget kinds of ETFs that should be on your radar.

A Vanguard ETF

Vanguard US Dividend Appreciation Index ETF (TSX:VGG) follows an index that contains a basket of 267 securities from various industries. Most of the holdings are giants from their respective fields, like finance, healthcare, consumer staples, etc. One attractive feature of the ETF might be that it doesn’t lean too heavily on the tech sector, like most other ETFs around S&P 500.

That’s because of the index that this passively managed ETF follows: The S&P US Dividend Growers Index. And since few tech giants issue dividends, they are not part of the ETF’s basket of securities.

The ETF has proven its mettle through its consistent growth for more than a decade. $5,000 invested in the ETF exactly 10 years ago would have grown to over $19,260 by now. That’s almost four times growth in a decade.

A Blackrock ETF

iShares Core S&P US Total Market Index ETF (TSX:XUH) is another U.S.-facing ETF that’s available to Canadian investors as well. It’s not as old as the Vanguard ETF, but its performance already makes it quite attractive for investors interested in growth. The fund has returned about 109% to its investors in the last five years, and, at this pace, it could double your capital in a decade.

The fund is made up (mostly) of two other ETFs, both by Blackrock. And since it focuses on the broader U.S. market, the tech exposure is quite heavy, over a quarter of the portfolio. But it carries a medium risk rating and a very attractive MER of just 0.07%. If you dive down into ETFs it’s made up of, this fund gives you exposure to about 3,673 U.S. companies. That’s as diversified as a healthy ETF can be.

A First Asset ETF

The U.S. dividend-growth index offers powerful growth, mimicked by multiple ETFs, another of which is CI WisdomTree U.S. Quality Dividend Growth Index ETF (TSX:DGR). It’s hedged in CAD and comes with a management fee of 0.35%. The ETF started out in 2016, and since then, it has grown about 83%. That’s not as marvelous as the other ETFs on this list, but it’s still about 14.5% growth every year — more than many growth stocks can offer.

And thanks to the underlying index and the well-diversified basket of securities, this growth is quite consistent. So, you can expect a decent nest egg if you stick with it for long enough. However, out of the two ETFs on this list following the same index, this one should get a second preference.

Foolish takeaway

The three high-growth ETFs have the potential to more than double your capital in a decade. So, if you start investing in them in your early 30s, you could have quite a nest egg built up by the time you retire. And thanks to their internal diversification, you will not be required to get actively involved in investment management with these ETFs.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Secure Your Future: 3 Safe Canadian Dividend Stocks to Anchor Your Portfolio Long Term

Here are three of the safest Canadian dividend stocks you can consider adding to your portfolio right now to secure…

Read more »

money goes up and down in balance
Dividend Stocks

Is Fiera Capital Stock a Buy for its 8.6% Dividend Yield?

Down almost 40% from all-time highs, Fiera Capital stock offers you a tasty dividend yield right now. Is the TSX…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Wednesday, December 11

In addition to the U.S. inflation report, the Bank of Canada’s interest rate decision and press conference will remain on…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Use Your TFSA to Double Your TFSA Contribution

If you're looking to double up that TFSA contribution, there is one dividend stock I would certainly look to in…

Read more »

Income and growth financial chart
Investing

A Top-Performing U.S. Stock That Canadian Investors Really Should Own

Amazon (NASDAQ:AMZN) is starting to run faster in the AI race, making it a top U.S. pick for 2025.

Read more »

Person uses a tablet in a blurred warehouse as background
Tech Stocks

2 Canadian AI Stocks Poised for Significant Gains

Here are two top AI stocks long-term investors may want to consider before the end of the year.

Read more »

man touches brain to show a good idea
Investing

3 No Brainer Tech Stocks to Buy With $500 Right Now

Here are three no-brainer tech stocks long-term investors on a limited budget may want to consider right now.

Read more »

woman looks at iPhone
Dividend Stocks

Retirees: Is TELUS Stock a Risky Buy?

TELUS stock has long been a strong dividend provider, but what should investors consider now after recent earnings?

Read more »