2 Canadian ETFs I’d Lock Into a TFSA and Never Touch

These 2 Canadian ETFs have the qualities long-term TFSA investors can comfortably hold through almost any market cycle.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published June 24, 9:00 pm EDT

To build wealth from the stock market, Tax-Free Savings Account (TFSA) investors don’t always need to find the next hot stock. In fact, some of the most successful investors have done the opposite. They focused on broad diversification, stayed invested through market ups and downs, and let time do most of the heavy lifting.

That’s one reason exchange-traded funds (ETFs) have become such a popular choice among Canadian investors. A well-constructed ETF could provide exposure to entire markets, sectors, and economies without requiring constant attention. In addition, many of these funds come with low fees, making it easier for more of your TFSA money to stay invested and compound over time.

When I think about top Canadian ETFs to buy for a TFSA, I’m drawn to funds that offer a combination of diversification, staying power, and strong long-term potential. In this article, I’ll spotlight two such ETFs you can consider adding to your TFSA right now and hold forever.

ETF stands for Exchange Traded Fund — Source: Getty Images

Vanguard All-Equity ETF Portfolio

For investors looking for top Canadian ETFs to buy and forget about for years, Vanguard All-Equity ETF Portfolio (TSX: VEQT) could be a strong place to start.

VEQT is designed with a simple objective in mind. The ETF seeks long-term capital growth through a portfolio invested entirely in equities. Instead of relying on a handful of companies, it spreads investments across Canada, the United States, international developed markets, and emerging markets.

That broad diversification is one of the biggest reasons I’d be comfortable holding it in a TFSA and rarely touching it. As of May 2026, VEQT provided exposure to more than 13,700 stocks around the world. A portfolio that wide helps reduce the risk that comes with depending on any single company, sector, or country.

Another attractive feature is its low-cost structure. In November 2025, Vanguard reduced the fund’s management fee to 0.17%, while its management expense ratio (MER) stood at 0.24%. Lower fees leave more money invested, which can make a noticeable difference over decades of compounding.

Vanguard All-Equity ETF’s sector exposure is also well balanced. Technology represents its largest allocation at 26.2%, followed by financials at 19.7% and industrials at 11.8%. That mix gives investors exposure to some of the world’s largest growth industries while still maintaining diversification across the broader economy.

For TFSA investors seeking long-term growth with minimal maintenance, VEQT ETF checks many of the boxes that make it worth holding indefinitely.

iShares S&P/TSX Composite High Dividend Index ETF

If VEQT is built around global growth opportunities, iShares S&P/TSX Composite High Dividend Index ETF (TSX: XEI) leans into the strength of Canada’s top dividend stocks.

This ETF mainly tracks the S&P/TSX Composite High Dividend Index and focuses on Canadian stocks with strong dividend-paying histories. According to BlackRock, the fund seeks long-term capital growth while replicating the performance of the index, net of expenses.

One reason long-term TFSA investors may appreciate this ETF is its monthly income stream. The fund pays monthly distributions and had a distribution yield of about 3.7% as of May 2026. For investors who like the idea of regular cash flow while remaining invested, that can be a valuable feature.

The iShares S&P/TSX Composite High Dividend Index ETF’s top holdings include Toronto-Dominion Bank, Royal Bank of Canada, Suncor Energy, TC Energy, Enbridge, Canadian Natural Resources, Bank of Montreal, Nutrien, Canadian Imperial Bank of Commerce, and Bank of Nova Scotia.

XEI has also rewarded patient investors over time. The ETF turned a hypothetical $10,000 investment at inception in 2011 into $39,685 by May 2026. In addition, it generated a 43.1% one-year return and a 15.8% annualized return over five years.

No ETF is perfect for every investor. However, for Canadians who want a combination of dividend income, exposure to established Canadian companies, and long-term growth potential, XEI remains one of the top Canadian ETFs to buy for a TFSA.