The 2 ETFs I’d Be Most Excited to Own Heading Through the Rest of 2026

Here’s why these two ETFs offering a combination of value, income and growth potential are two of the best picks for 2026.

Key Points
  • Geopolitical fallout from the Iran war has kept rates elevated and volatility high in 2026, so investors should position for current market realities rather than past optimism.
  • Two Canadian ETFs to consider: XIT (TSX:XIT) for concentrated exposure to top domestic tech names like Shopify and Constellation Software, and ZRE (TSX:ZRE) for equal‑weight REIT exposure with roughly a 4.5% yield and recovery upside.
  • Pairing XIT’s growth potential with ZRE’s income and diversification offers a balanced way to pursue returns in 2026 while managing risk.

When it comes to investing in 2026, whether it’s in Canadian stocks or exchange-traded funds (ETFs), the reality is that things haven’t played out the way many investors expected.

Coming into the year, there was a lot of optimism around interest rates continuing to fall, volatility easing, and markets becoming more predictable. But instead, the war in Iran has impacted everything.

Interest rates have remained relatively elevated, uncertainty is still high, and certain sectors have already made significant moves while others continue to lag.

And that’s what makes investing right now a bit more challenging. Because it’s not just about being diversified, it’s about ensuring that you’re actually positioned based on what’s happening in the market today.

However, even with all the volatility and uncertainty, there are still clear opportunities in specific parts of the market.

And that’s exactly why there are a couple of Canadian ETFs I’d be genuinely excited to own through the rest of 2026.

ETFs can contain investments such as stocks

Source: Getty Images

A growth ETF offering exposure to Canada’s top tech stocks in 2026

When investors think about technology stocks, most immediately look to the U.S., and for good reason. That’s where many of the largest and most dominant tech companies in the world are.

However, Canada still has a handful of high-quality technology businesses that continue to grow and execute at a high level, which is why iShares S&P/TSX Capped Information Technology Index ETF (TSX: XIT) is one of the most intriguing picks in 2026.

First off, the XIT is ideal for investors because instead of trying to pick individual winners, it gives you exposure to some of Canada’s biggest tech stocks, like Shopify and Constellation Software.

That’s important because these are businesses that continue to benefit from long-term trends like e-commerce, software adoption, and digital transformation.

More importantly, though, they’re not purely dependent on macro conditions being perfect. They continue to grow because of their competitive advantages and the demand for what they offer.

Now, it’s worth noting that XIT is more concentrated than many other ETFs. However, that’s part of the point.

You’re not buying it for broad diversification. You’re buying it to get meaningful exposure to some of the strongest growth companies on the TSX, which is exactly why it’s one of the most exciting ETFs to own through the rest of 2026 and beyond.

A beaten-down sector that still has a clear path to recovery

On the other end of the spectrum, one of the most overlooked opportunities in the market right now continues to be real estate.

For the last few years, real estate investment trusts (REITs) have faced significant pressure from higher interest rates, rising borrowing costs, and generally weak sentiment across the sector, which has led to many high-quality REITs trading at lower valuations than they have historically.

However, it’s important to understand that the underlying demand for real estate hasn’t disappeared. People still need places to live, businesses still need industrial space, and retail continues to play an important role in the economy.

So, while sentiment has been weak, the fundamentals remain in place, which is exactly what’s creating the opportunity today, especially since REITs don’t need perfect conditions to recover. They just need stability.

That’s why one of the most compelling Canadian ETFs to consider for the rest of 2026 is BMO Equal Weight REITs Index ETF (TSX: ZRE).

First off, instead of being heavily weighted toward a handful of names, ZRE uses an equal-weight strategy, which helps provide better diversification across different types of real estate.

On top of that, it offers a steady stream of monthly income, which is especially valuable while you’re waiting for sentiment to improve. And the income isn’t insignificant either, with a current yield of roughly 4.5%.

That combination of income and potential upside as the sector recovers is exactly what makes it such an interesting ETF to own in 2026.

And when you pair that with growth exposure like the XIT offers, you end up with a portfolio that’s well-positioned for the rest of 2026.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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