Canadian investors can put their elbows up too and push back against Donald Trump’s idiotic tariffs—by keeping their money in our own markets.
One of the simplest ways to do that is by investing in Canada-focused exchange-traded funds (ETFs). These are low-cost investment products that let you own a basket of stocks or bonds all in one trade.
And when you choose Canadian-domiciled ETFs, you’re not just avoiding unnecessary foreign exposure—you’re also sidestepping currency risk and potential tax headaches.
Today, I’ve got three picks from BMO Global Asset Management to help you do just that: a growth ETF, a balanced ETF, and an income-focused ETF, all designed to help you invest at home with confidence.
Image source: Getty Images
The growth pick
BMO S&P/TSX 60 Index ETF (TSX: ZIU) is a straightforward way to get passive exposure to Canada’s largest blue-chip companies.
It tracks the S&P/TSX 60 Index, a market cap-weighted portfolio of the 60 biggest publicly traded Canadian firms—think railways, banks, and pipelines. If you want a set-it-and-forget-it approach to investing in Canada’s corporate giants, ZIU delivers.
It comes with a reasonable 0.15% management expense ratio (MER), and while it’s not designed for income, it still offers a solid 2.65% distribution yield, paid out quarterly.
The balanced pick
If you’re looking for a mix of growth and income, BMO Canadian Dividend ETF (TSX: ZDV) is a solid option.
This fund invests in Canadian dividend-paying stocks using a rules-based methodology that screens for a company’s three-year dividend-growth rate, current yield, and payout ratio—striking a balance between quality, income, and sustainability.
ZDV currently offers an annualized distribution yield of 3.70% (as of March 24, 2025) and pays out monthly, making it an attractive choice for investors who want steady cash flow alongside long-term equity growth. The 0.39% MER is a fair price for the added selectivity and diversification.
The income pick
If you’re less concerned about share price growth and more focused on maximizing monthly income, consider BMO Canadian High Dividend Covered Call ETF (TSX: ZWC).
This ETF uses the same stock selection rules as ZDV, targeting Canadian dividend stocks based on yield, growth, and payout ratio, but adds a covered call strategy on top.
By writing call options on its holdings, ZWC generates extra income in exchange for giving up some upside when markets rally. It’s a trade-off: less growth potential but more consistent cash flow.
As of March 24, 2025, ZWC pays an annualized distribution yield of 6.64%, with monthly payouts, and charges a 0.72% MER for the strategy.
