2 Top Canadian ETFs to Buy Now and Hold for the Long Haul

These two Canadian ETFs are not just some of the best ETFs to buy for the long haul, they’re also some of the best investments to make today.

Daniel Da Costa

Daniel joined the Motley Fool Canada team in 2019 with years of experience in banking and investing. Growing up the son of a proprietary stock trader and educator, Daniel’s always found joy in helping Canadians to improve their financial situations. With the Motley Fool, Daniel sees an even more rewarding way to impact Canadians positively. A student and great admirer of Warren Buffett, he’s always looking for investments offering growth at a reasonable price. Outside of finance, Daniel enjoys spending his time with family, sailing, and watching Formula One.

Published April 2, 2022 11:45 am EDT

Just like stocks, there are plenty of top Canadian ETFs that investors can buy for their portfolios. And also just like stocks, the best strategy when buying ETFs is to find the highest-quality investments that you can own for the long haul.

ETFs offer a variety of advantages and are especially beneficial for new investors since they offer instant diversification and exposure to several different stocks.

So if you’re looking for top Canadian ETFs to buy now, here are two to own for the long haul.

exchange traded funds — Image source: Getty Images

A top Canadian bank ETF to buy for the long haul

Canadian investors, especially those that have been in the market for years, know that some of the best stocks to own for the long haul are Canadian banks. That’s why one of the top Canadian ETFs to consider is a fund like the BMO Equal Weight Banks Index ETF (TSX: ZEB).

The ZEB ETF offers investors roughly equal exposure to each of the largest six banks in Canada. It’s an excellent way to gain exposure to the entire Canadian banking sector without having to worry about single stock risk.

And while this is one of the top Canadian ETFs to buy and hold long term, it’s also one of the best ETFs to buy today. With interest rates on the rise, bank stocks have the potential to see some of the most positive impacts as a result.

Therefore, if you’re looking for top Canadian ETFs to buy now, the ZEB has tonnes of upside potential, and it pays a distribution that has a current yield of 3.2%.

A top index ETF

If you’re looking for investments that you can buy and forget about, low-cost index funds are some of the best to consider. In fact, Warren Buffett has recommended that investors put the majority of their cash in an index fund, and usually, he recommends the S&P 500.

So if you’re looking for top Canadian ETFs to buy, the iShares Core S&P 500 Index ETF (CAD-Hedged) (TSX: XSP) is one of the best to choose.

Investing in an index like the S&P 500 has a tonne of advantages. While the ZEB ETF diversifies your money among different banks stocks, the S&P 500 diversifies your money across the entire economy.

So you’re gaining exposure to some of the largest companies in the world, which is why it’s such an excellent investment. Warren Buffett recommends buying index funds like these and holding them for the long haul because, over the long run, the economy always finds a way to continue growing.

Therefore, finding top Canadian index ETFs to buy that give you exposure to this long-term growth and which charge only minimal fees is one of the best and simplest ways to invest your capital.

And in addition to the XSP, you could also consider a Canadian index ETF as well, or you could choose to invest in both, giving yourself ultimate diversification.

Bottom line

There’s a reason why so many ETFs exist today, and why ETF investing has become so popular. These investments offer investors tonnes of advantages and, by giving you more diversification, help to protect your capital.

So if you’re looking for top Canadian ETFs that you can buy today, these are two of the best.