Here Are My 2 Favourite ETFs for 2026

Both of these ETFs target dividend-growth stocks, with one focused on Canada and the other on America.

Key Points
  • Dividend growth ETFs focus on companies that consistently raise their payouts rather than simply offering high yields.
  • CMVP provides equal-weight exposure to Canadian companies with at least six years of dividend growth.
  • SMVP targets equal-weighted U.S. companies with at least 25 years of dividend increases.

I have a lot of favourite exchange-traded funds (ETFs), but they usually depend on the strategy and the type of exposure I want.

For example, the ETF I prefer for Canadian stocks might be completely different from the one I use for U.S. stocks, bonds, or commodities. Every asset class has its own quirks, and the “best” ETF often depends on what role it plays in a portfolio.

That said, there are a few things most of my picks have in common. They tend to be low cost, index based, and broadly diversified. I generally avoid complicated or gimmicky strategies when a simple index ETF can do the job.

Dividend investing is a good example. Many investors like to pick individual dividend stocks, but personally I prefer to automate the process through ETFs. Instead of researching and monitoring dozens of companies, I can simply hold a fund that tracks a basket of businesses with strong dividend track records.

Two dividend ETFs that stand out to me heading into 2026 come from Hamilton ETFs. Here’s how they work.

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Source: Getty Images

Canadian dividend growers

Hamilton Champions Canadian Dividend Index ETF (TSX: CMVP) is my first pick.

To be included in the index, companies must have increased their dividend for at least six consecutive years without a cut. That requirement helps filter out weaker businesses and leaves a portfolio of companies with stable cash flow.

The portfolio is built using an equal-weight approach. Instead of letting the largest companies dominate the fund, each holding receives a similar allocation. This spreads risk more evenly across the portfolio.

Sector exposure still reflects the Canadian market to some degree, with financials playing a large role. However, the fund has somewhat less exposure to energy and more representation from materials and industrial companies compared to many Canadian dividend ETFs.

The ETF currently pays monthly distributions and offers a yield of 2.77% on an annualized basis. The management fee is 0.19%.

American dividend growers

Hamilton CHAMPIONS U.S. Dividend Index ETF (TSX: SMVP) is my second pick.

For U.S. companies to qualify, they must have increased their dividends for at least 25 consecutive years. That long track record tends to favour very established companies with durable business models.

Sector composition also looks different from a traditional U.S. market index. Technology exposure is lower than the S&P 500, while sectors like consumer staples, healthcare, and industrials play a larger role.

The ETF currently offers an annualized yield of 2.21% and also pays monthly distributions. Like CMVP, the management fee is 0.19%.

Fool contributor Tony Dong 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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