2 Canadian ETFs That Could Help You Retire a Millionaire

If you’re looking for growth, but are worried about stocks, consider these two Canadian ETFs that can provide the best of everything.

We talk a lot about Canadian stocks here at the Motley Fool. However, in the last decade, there has been a surge in exchange-traded funds (ETFs) available to Canadian investors. And with so many options, there have been more and more for Canadians to consider depending on their goals and investment style.

Today, we’re going to focus on growth. ETFs that could see you retire a millionaire — even if you don’t have all that much time or have all that much money! So, let’s get into two ETFs that could help you retire with that millionaire status.

ETF chart stocks

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CINV ETF

First, we’ll focus on CI Global Alpha Innovation ETF C$ Series (TSX: CINV). CINV aims to provide investors with exposure to global innovation and disruptive technologies. Therefore, Canadians can gain exposure to companies that usually are not listed on the TSX but through a Canadian asset management firm. 

The primary objective of the CI Global Alpha Innovation ETF is to achieve long-term capital growth. This is done by investing primarily in equity securities of global companies that are driving or benefiting from innovation. The stock does this by focusing on companies that are at the forefront of innovation across various sectors. These include sectors such as technology, healthcare, consumer discretionary, and other industries. These companies are often involved in developing disruptive technologies or business models that have the potential to transform industries and generate significant growth.

Overall, the ETF is actively managed, which can mean higher commission feeds. However, that comes with portfolio managers that actively select and manage the securities held in the fund rather than focusing on a passive index.

As mentioned, the fund invests in companies beyond Canada with a global, diversified portfolio. Even so, while investments in innovative companies can offer significant growth potential, they also come with higher risk levels due to factors such as technological disruption, regulatory uncertainties, and competition. Investors should be aware of the higher volatility associated with such investments and consider their risk tolerance before investing. Shares of CINV ETF are currently up by 43% in the last year alone.

XCS ETF

Second, let’s focus on iShares X&P/TSX SmallCap Index ETF (TSX: XCS), which provides investors with exposure to the Canadian small-cap equity market by tracking the performance of the S&P/TSX SmallCap Index. 

The XCS ETF focuses on small-cap companies listed on the TSX, which typically have smaller market capitalizations compared to large-cap or mid-cap companies. Small-cap companies are often in the early stages of growth and may have the potential for significant expansion as they develop and execute their business strategies. These companies may also be more nimble and able to capitalize on emerging opportunities.

Small-cap stocks are often associated with higher growth potential compared to larger, more established companies. They may be operating in niche markets, introducing innovative products or services, or experiencing rapid revenue and earnings growth. Investing in a diversified portfolio of small-cap stocks through XCS can provide exposure to this growth potential.

In the case of XCS ETF, this offers diverse exposure to a basket of small-cap stocks across various sectors of the Canadian economy. Whereas you see higher costs with CINV ETF, this index fund providers lower costs since it only tracks an index. So, with shares up 8% in the last year, this is another ETF that could help you towards that millionaire status. 

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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