Most investors are aware of the great stocks that are available to buy on the market, but when it comes to ETFs, most investors gravitate towards the larger funds or U.S.-listed ETFs. What few Canadian investors may realize, however, is that there’s an equally attractive basket of Canadian ETFs to buy.
Those Canadian ETFs remain largely under the radar and underappreciated. There are a few reasons for that. Some of them operate in niche sectors. Others comprise stable businesses that generate results and pay dividends, but don’t generate headlines.
As a result, there’s a slice of Canadian ETFs that offer huge upside to investors that rarely make it into conversations.
Here’s a look at three of those funds that warrant a closer look.
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A low‑volatility ETF that quietly delivers stability
The first of three Canadian ETFs to consider now is BMO Low Volatility Canadian Equity ETF (TSX:ZLB). As the name implies, this ETF focuses on low‑volatility Canadian equities. The fund screens for components with lower price fluctuations, which results in a stable, boring portfolio.
Examples of this include financials, consumer defensive, and utility stocks.
This makes BMO Low Volatility a defensive option for investors who want more stable returns through different market cycles. The fund has performed well, returning nearly 10% over the trailing 12 months and over 47% over the past five years.
The fund also offers a quarterly payout, which, as of the time of writing, offers a yield of 1.9%.
Incredibly, despite that strong track record, the fund receives less attention than broader Canadian ETFs. This makes it a superb option for long-term investors seeking one of the more stable options on the market.
Invest in a tech ETF with growth potential
Investors seeking exposure to Canada’s technology sector should consider iShares S&P/TSX Capped Information Technology Index (TSX:XIT). This iShares S&P ETF has a simple job, and that’s to give investors exposure to Canadian tech stocks.
The fund is designed for long-term capital growth rather than income. That results in a basket that’s heavily concentrated in a small group of the largest tech stocks.
That concentration is an advantage. It allows investors an easy way to own the most important names in Canadian tech. That includes software, e-commerce and IT services. In other words, the ETF represents an easy way for investors to buy the sector from a single basket.
The other advantage here is diversification. The ETF itself is tilted entirely to tech, but within that segment, there are multiple businesses with different allocations that get rebalanced over time.
For those investors looking to diversify within domestic markets with Canadian ETFs, XIT provides targeted exposure that remains surprisingly underappreciated.
A utilities ETF built for income and stability
The last of three Canadian ETFs to consider right now is BMO Equal Weight Utilities Index (TSX:ZUT).
BMO Equal Weight Utilities concentrates on Canadian utilities, a sector that’s known for stability, regulated revenue streams, and recurring dividends. This makes utilities attractive for income investors during periods of market volatility.
The fund’s focus on essential service providers gives it a defensive profile that can help anchor a portfolio. Utilities rarely attract attention because they lack the excitement of growth‑oriented sectors.
As a result, BMO Equal Weight Utilities is overlooked despite offering stability, income-earning potential, and defensive appeal. For investors seeking Canadian ETFs that can provide income and stability, BMO Equal Weight Utilities is a straightforward option to consider.
Why these Canadian ETFs deserve more attention
The three ETFs mentioned above each offer investors something different but remain relatively underfollowed in the broader ETF landscape. They won’t dominate headlines, but they can strengthen any portfolio, while offering growth, income, and stability.
That alone makes them ideal options for any well-diversified portfolio.
