Usually talking, most buyers categorize shares into one in all two classes: progress and worth. Development shares are firms which have the potential to exhibit speedy progress sooner or later.
These shares are sometimes priced with their future potential in thoughts. This could result in excessive value multiples and elevated volatility within the inventory’s value. If you wish to put money into progress property, you’ll must have a better danger tolerance.
However the upside for progress shares is why folks wish to put money into them within the first place. Development sectors like know-how or electrical autos have offered large returns over a brief time frame. Worth shares are likely to see much less volatility and decrease general returns.
Development ETFs are a method to put money into a basket of progress shares in a single handy fund. These are sometimes additionally known as high-growth funds or aggressive progress funds.
On this article, I’ll cowl my ten picks for the most effective progress ETFs in Canada for 2025.
Greatest Development ETFs in Canada for 2025
Listed here are the ten finest progress ETFs in Canada that I will probably be discussing on this article:
- Vanguard Development ETF Portfolio (VGRO)
- iShares Canadian Development Index ETF (XCG)
- TD International Expertise Leaders Index ETF (TEC)
- BMO S&P 500 Index ETF (ZSP)
- BMO NASDAQ 100 Fairness Index ETF (ZNQ)
- BMO Clear Power Index ETF (ZCLN)
- iShares Core Fairness ETF Portfolio (XEQT)
- iShares Core Development ETF Portfolio (XGRO)
- International X Semiconductor Index ETF (CHPS)
- Ark Innovation ETF (ARK.Okay)
All information and figures on this article are correct as of 2025.
1. Vanguard Development ETF Portfolio
Listed here are some key information about this ETF:
- Ticker Image: TSE: VGRO
- MER: 0.24%
- Whole AUM: $6.69 billion
- Variety of Holdings: 7
- Distribution Yield: 1.96%
- Distribution Frequency: Quarterly
- 1-Yr Return: 14.25%
- Inception Date: January 25, 2018
VGRO is a Vanguard Canada progress ETF that trades as a portfolio fund on the TSX. Which means that somewhat than holding particular shares, VGRO holds a basket of different Vanguard ETFs.
This fund holds 7 completely different Vanguard ETFs which can be composed of a complete of 13,541 shares and 19,111 bonds. The biggest holdings are within the know-how (20.2%) and financials (19.3%) sectors.
Whereas it takes a portfolio method, 80.5% of VGRO’s holdings are large-cap shares and 45% are US-listed shares. This implies a big proportion of the portfolio is in mega-cap American tech shares.
2. iShares Canadian Development Index ETF
Listed here are some key information about this ETF:
- Ticker Image: TSE: XCG
- MER: 0.55%
- Whole AUM: $81.3 million
- Variety of Holdings: 38
- Distribution Yield: 0.62%
- Distribution Frequency: Quarterly
- 1-Yr Return: 15.24%
- Inception Date: November sixth, 2006
XCG is a Blackrock iShares progress ETF that focuses on medium and large-cap Canadian firms which can be anticipated to have outsized progress sooner or later.
The biggest holdings in XCG are Canadian Nationwide Railway, Canadian Pacific Kansas Metropolis Railway, and Shopify, which account for 25% of the fund’s allocations.
This ETF has a big weighting in direction of the economic sector, with 31% of the fund market worth belonging to firms on this sector.
Listed here are different engaging iShares ETFs.
3. TD International Expertise Leaders Index ETF
Listed here are some key information about this ETF:
- Ticker Image: TSE: TEC
- MER: 0.39%
- Whole AUM: $2.54 billion
- Variety of Holdings: 241
- Distribution Yield: 0.12%
- Distribution Frequency: Quarterly
- 1-Yr Return: 18.22%
- Inception Date: Might sixth, 2019
TEC is a TD International Asset Administration progress ETF that trades on the TSX. It focuses on international large-cap tech shares, with an 85.10% weight given to US-listed shares.
The biggest holdings in TEC are Apple, Microsoft, Amazon, Alphabet, and NVIDIA. The biggest Canadian holding is Shopify.
4. BMO S&P 500 Index ETF
Listed here are some key information about this ETF:
- Ticker Image: TSE: ZSP
- MER: 0.09%
- Whole AUM: $13 billion
- Variety of Holdings: 505
- Distribution Yield: 0.92%
- Distribution Frequency: Quarterly
- 1-Yr Return: 17.07%
- Inception Date: Nov 14, 2014
The BMO S&P 500 Index ETF is designed to duplicate the efficiency of the S&P 500. Whereas the S&P isn’t historically often known as a progress index when in comparison with different indexes such because the NASDAQ, the presence of shares corresponding to Microsoft and NVIDIA within the S&P 500 has resulted in spectacular progress over the previous 12 months.
5. BMO NASDAQ 100 Fairness Index ETF
Listed here are some key information about this ETF:
- Ticker Image: TSE: ZNQ
- MER: 0.39%
- Whole AUM: $861.36 million
- Variety of Holdings: 103
- Distribution Yield: 0.30%
- Distribution Frequency: Yearly
- 1-Yr Return: 16.02%
- Inception Date: February 15, 2019
ZNQ is a BMO International Asset Administration progress ETF specializing in the high-growth NASDAQ 100 index. It nonetheless trades on the TSX and gives Canadian buyers with publicity to US shares with out paying alternate charges.
ZNQ’s efficiency goals to reflect that of the NASDAQ 100. Over the previous 12 months, ZNQ and the NASDAQ 100 have seen related returns.
This ETF emphasizes progress, as its dividend yield is at 0.31% and is just paid as soon as per 12 months. The highest holdings in ZNQ are Apple, Microsoft, Amazon, and NVIDIA.
6. iShares Core Fairness ETF Portfolio
Listed here are some key information about this ETF:
- Ticker Image: TSE: XEQT
- MER: 0.20%
- Whole AUM: $6.85 billion
- Variety of Holdings: 4
- Distribution Yield: 1.96%
- Distribution Frequency: Quarterly
- 1-Yr Return: 16.38%
- Inception Date: Aug 7, 2019
If diversification is necessary to you as an investor, XEQT is the proper possibility. This ETF permits Canadian buyers to realize entry throughout the globe. High holdings exterior of Canada and the U.S. embrace Japan (5.91%), the UK (3.65%), and France (2.64%)
The fund holds 4 ETFs with 8,995 underlying holdings. The highest 10 underlying holdings all encompass North American firms within the data know-how and financials sector.
7. iShares Core Development ETF Portfolio
Listed here are some key information about this ETF:
- Ticker Image: TSE: XGRO
- MER: 0.20%
- Whole AUM: $3.09 billion
- Variety of Holdings: 8
- Distribution Yield: 1.95%
- Distribution Frequency: Quarterly
- 1-Yr Return: 14.22%
- Inception Date: June 21, 2007
The second Blackrock iShares progress ETF on my checklist is XGRO. Much like VGRO from Vanguard, this fund holds a basket of different iShares ETFs somewhat than particular person shares.
This ETF holds a complete of 8 completely different ETFs, which maintain an mixture of 21,163 completely different shares and bonds. The iShares Core S&P Whole US Inventory Market Index ETF (ITOT) has the best weight in XGRO with a 36% allocation.
For XGRO, the best particular person inventory holdings throughout all the ETFs embrace Microsoft, Apple, NVIDIA, and Royal Financial institution of Canada
8. International X Semiconductor Index ETF
Listed here are some key information about this ETF:
- Ticker Image: TSE: CHPS
- MER: 0.45%
- Whole AUM: $96 million
- Variety of Holdings: 49
- Distribution Yield: 0.21%
- Distribution Frequency: Yearly
- 1-Yr Return: -5.58%
- Inception Date: June 21, 2021
CHPS is a Horizons progress ETF that focuses on the worldwide semiconductor trade. Semiconductors are extensively utilized in practically each know-how product, from smartphones to televisions to electrical vehicles.
This fund holds 49 of the biggest semiconductor firms on this planet. It holds a 94% allocation to the data know-how sector with a 66.4% allocation to US-listed shares.
The biggest holdings within the CHPS ETF are Taiwan Semiconductor Manufacturing Firm, NVIDIA, AMD, Broadcom, and Utilized Supplies Inc.
9. Ark Innovation ETF
Listed here are some key information about this ETF:
- Ticker Image NYSEARCA:ARK.Okay
- MER: 0.75%
- Whole AUM: $6 billion USD
- Variety of Holdings: 33
- Distribution Yield: N/A
- Distribution Frequency: N/A
- 1-Yr Return: 9.65%
- Inception Date: October 30, 2014
The ultimate progress ETF on my checklist and the one US-listed ETF is the flagship fund from Cathie Wooden’s Ark Make investments portfolio. The Ark Innovation portfolio focuses on high-growth firms, primarily within the tech trade.
ARKK’s high holdings embrace Telsa, Coinbase, Roku, and Block. It has a 95% allocation to North American-listed shares.
The ETF is deemed high-risk and has seen run-ups of over 100% a 12 months. Regardless of the volatility, ARKK has averaged a gradual 11% yearly since its inception in 2014.
10. BMO Clear Power Index ETF
Listed here are some key information about this ETF:
- Ticker Image: TSE: ZLCN
- MER: 0.40%
- Whole AUM: $49 million
- Variety of Holdings: 100
- Distribution Yield: 2.17%
- Distribution Frequency: Yearly
- 1-Yr Return: -9.59%
- Inception Date: January twentieth, 2021
ZCLN is one other BMO International Asset Administration progress ETF that focuses on investing in clear power firms with a excessive ESG or Environmental, Social, and Governance ranking.
Are clear power shares thought-about progress? Completely. Because the world shifts away from fossil gasoline reliance, clear power options will proceed to be adopted globally.
The highest holdings in ZCLN are First Photo voltaic, Enphase Power, Iberdrola, and Vestas Wind Methods. ZCLN has the best allocation to the electrical utilities trade with a 30% weight and a 37% weight to US-listed shares.
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How To Purchase Development ETFs in Canada in 2025
Thinking about including some progress ETFs to your portfolio? Fortunately for you, they’re out there at most Canadian low cost brokerages. All that you must do is comply with these steps to start investing sooner or later!
- Join a free brokerage account at a Canadian low cost brokerage
- Add funds to your account
- Lookup the Canadian progress ETFs that you’re fascinated by shopping for
- Use both a market order to get the present value or set your personal purchase value with a restrict order
- Add any of the most effective progress ETFs in Canada to your portfolio
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What are Development ETFs?
You’ve most likely realized now that progress ETFs in Canada are rising industries like know-how. You received’t discover many blue-chip shares which account for a majority of the market cap on the TSX.
Since most large-cap know-how shares are listed within the US, progress ETFs do present a method to acquire publicity to US-listed shares whereas nonetheless investing in Canadian {dollars}.
There is a component of repetition because the mega-cap tech shares within the US account for such a big weight in indices just like the NASDAQ and the S&P 500.
Additionally, you will discover there may be little emphasis on dividends on the subject of progress funds. Sometimes with progress investments, we alternate stability and dividends with the potential for outsized future progress.
Downsides of Development ETFs
2022 was a wonderful instance of the draw back of progress ETFs. When the financial system is risky and rates of interest rise, the forward-looking efficiency of progress firms declines.
Typically, progress firms depend on taking over debt to quickly develop and scale operations. With larger rates of interest, that debt turns into costlier to pay again and eats into the corporate’s backside line.
Lastly, progress ETFs are higher served for youthful buyers with long-term investing horizons. Buyers nearer to retirement will doubtless profit from stability and regular dividends from worth ETFs.
Methodology for Selecting Development ETFs in Canada
If you find yourself on the lookout for progress ETFs to put money into, conventional metrics like PE Ratio are usually not as helpful. Ideally, you wish to put money into funds that maintain firms which have exhibited regular progress from quarter to quarter and on a year-over-year foundation.
Different issues I exploit when selecting ETFs apply to progress and worth funds. All the time search for a low MER so that you simply pay much less in administration charges. This could make a big distinction over the long run.
You aren’t essentially on the lookout for distributions with progress ETFs, so what else is there to search for? The annual efficiency of the fund and a good ETF supplier like Vanguard or iShares additionally helps.
Lastly, you’ll wish to guarantee your new progress ETFs don’t overlap with present investments. In case you personal a technology-based ETF, an S&P 500 ETF, a NASDAQ ETF, and a complete markets ETF, likelihood is you’re holding a lot of the similar 5 large tech firms. Diversify your holdings and allocate progress ETFs to your portfolio primarily based in your danger urge for food and investing horizon.