Building a solid investment portfolio is a bit like building a house. In addition to a strong foundation, you also need the right mix of design and function. Similarly, growth ETFs (exchange-traded funds) can fuel your returns in the long run, while dividend-focused ETFs bring stability and income. Together, they work like the muscles and brains of your portfolio.
However, you don’t need to wait for the perfect market timing or save thousands of dollars to get started. Even with less than $100, you can start owning pieces of top-performing sectors and some of Canada’s highest-yielding companies. And right now, there are two TSX-listed ETFs that offer exactly that — one built for long-term capital appreciation, and the other focused on regular dividend income.
In this article, I’ll walk you through both of these top Canadian ETFs, and explain what makes them special and how they could support different sides of your investing goals.
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iShares S&P/TSX Capped Information Technology Index ETF
First, let’s start with the growth side of the story — the iShares S&P/TSX Capped Information Technology Index ETF (TSX:XIT) offers a powerful lineup of Canada’s most promising tech stocks, all in one place. This ETF focuses on long-term capital appreciation and is designed to mirror the performance of Canada’s top publicly listed tech companies. And it has done a solid job of that over the years.
If you had invested $10,000 when this ETF launched in 2001, that investment would have grown to more than $77,000 by November 2025. That’s a big leap, backed by stable growth in some of the most innovative companies on the TSX.
The fund holds a tight basket of 22 tech stocks, and most of its performance comes from some heavy hitters. Shopify makes up the largest slice of the fund at nearly 28%, followed by Celestica, Constellation Software, and CGI. These companies are gaining global traction in digital commerce, software services, and artificial intelligence (AI)-powered supply chain solutions.
Over the past 10 years, XIT ETF has delivered over 20% average annual growth. And while tech stocks can be volatile, this ETF allows you to spread the risk across the sector instead of betting on a single stock.
So, if you’re aiming to grow your capital over time with exposure to the fast-evolving tech sector, this top Canadian ETF fits the bill for under $85 a unit.
iShares Canadian Select Dividend Index ETF
On the dividend side, the iShares Canadian Select Dividend Index ETF (TSX:XDV) could help your portfolio stay consistent and rewarding with a monthly cash flow. The fund tracks the Dow Jones Canada Select Dividend Index and is built using a rules-based approach that filters for top dividend stocks with strong dividend growth, payout ratios, and yield.
Trading at just under $39 per unit, XDV makes it easy to tap into a monthly dividend stream, offering a yield of around 3.5% right now. That means you can collect passive income 12 times a year, which is a big plus if you’re building an income-focused portfolio.
Financial stocks primarily dominate this Canadian ETF, with big companies like Royal Bank of Canada, Bank of Montreal, and TD among its top holdings. These institutions have strong track records of profitability and stable dividends, which help anchor the ETF. Its other key holdings include Canadian Tire and TC Energy, giving it some diversification into retail and energy.
Despite being income-focused, XDV hasn’t lagged when it comes to growth. Over the past year, it has gained over 22%, and its 3-year and 5-year annualized returns stand at 16.3% and 14.7%, respectively. Clearly, XDV could be a great fit for TSX investors seeking reliable income without completely giving up on growth.
