Let’s face it: stock-picking isn’t for everyone. Even seasoned investors increasingly rely on exchange-traded funds (ETFs) to simplify their portfolios, reduce risk, and free up time. In 2026, with markets still shaped by global uncertainty, owning the right ETFs can be one of the smartest moves you make.
Here are three Canadian ETFs I’d seriously consider adding to a long-term portfolio right now.
Source: Getty Images
Gain exposure to the core Canadian market
iShares S&P/TSX 60 Index ETF (TSX:XIU) remains one of the most reliable ways to gain exposure to Canada’s largest and most established companies. It tracks roughly 60 blue-chip stocks and offers a straightforward way to participate in the domestic economy.
What makes XIU a good candidate to consider in 2026 is it provides immediate diversification across the Canadian market. With a low management expense ratio (MER) of 0.18% and a yield around 2.2%, it provides cost-efficient access to dividend-paying giants. Its top holdings include Royal Bank of Canada (8.7% of the fund), Toronto-Dominion Bank (6.2%), Shopify (5.1%), Enbridge (4.1%), and Agnico Eagle Mines (3.9%) — a mix of financial strength and growth potential.
Yes, it’s heavily weighted toward financials (38.6% of the fund), energy (17.6%), and materials (15.3%), but that’s not necessarily a drawback. These sectors seem to continue to benefit from the current macro environment. For investors seeking a dependable Canadian core holding, XIU still earns its place.
Global diversification without the hassle
If you’re overly concentrated in Canada — as many Canadian investors are — iShares Core MSCI All Country World ex Canada Index ETF (TSX:XAW) offers an easy fix.
XAW provides exposure to thousands of companies across the U.S., Europe, and emerging markets — all in one ETF. With a modest MER of 0.22%, it’s a cost-effective way to access global growth trends, especially in technology (26.5% of the fund), industrials (12.7%), and consumer discretionary (9.8%).
This matters more than ever. Canada’s market is relatively small and heavily tilted toward a few sectors. XAW balances that out with significant exposure to global innovators and market leaders that simply aren’t available domestically.
Its historical returns — over 10% annually since its inception in 2015 — highlight the power of diversification. More importantly, it reduces your reliance on any single economy, which is critical in an unpredictable global environment.
One-stop growth for long-term investors
For investors who want maximum simplicity without sacrificing growth, they might like iShares Core Equity ETF Portfolio (TSX:XEQT).
XEQT is an all-equity, globally diversified ETF that automatically allocates across regions: roughly 45% U.S., 25% Canada, 25% international developed markets, and 5% emerging markets. In other words, it gives you instant exposure to the world’s growth engines in a single purchase.
With a low MER of 0.20% and strong historical performance with a compound annual growth rate of 13.3% since its 2019 launch, XEQT is built for long-term investors who can stomach market volatility. Its yield is modest at around 0.9%, but that’s because the focus here is capital growth — not income.
For younger investors or anyone building wealth over decades, XEQT offers a compelling “set-it-and-forget-it” solution.
Investor takeaway
In 2026, successful investing doesn’t have to mean picking individual winners. The right ETFs can deliver diversification, solid returns, and peace of mind. XIU provides a stable Canadian foundation, XAW unlocks global opportunities, and XEQT offers an all-in-one growth engine. Together — or even individually — these ETFs can form the backbone of a resilient, long-term portfolio. The idea is to dollar-cost average into your selected core long-term ETFs over time to build long-term wealth.
