Exchange-traded funds are often low-cost instruments for investors to track popular indexes or leverage experienced manager choices to beat the market. The best ones serve as low-cost building blocks in a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In 2025, the top-performing ETFs included precious metals equity funds BMO Equal Weight Global Gold Index ETF ZGD and BMO Junior Gold Index ETF ZJG. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.
To find the year’s best-performing ETFs, we screened equity, allocation, and fixed income funds that trade within Canada for those with at least C$10 million in total assets. We narrowed the list to ETFs with parent pillars for their Morningstar Medalist Ratings of average or above, meaning our analysts believe they’re backed by industry-standard asset management companies. We also excluded exchange traded notes.
Within our list, four funds fell into the precious metals equity category, where the average name rose 126.72% in 2025.
The 10 Best-Performing ETFs for 2025
- BMO Equal Weight Global Gold Index ETF ZGD
- BMO Junior Gold Index ETF ZJG
- iShares S&P/TSX Global Gold Index ETF XGD
- Global X Gold Producer Equity Covered Call ETF GLCC
- iShares S&P/TSX Capped Materials Index ETF XMA
- Global X Copper Producers Index ETF COPP
- BMO Equal Weight Global Base Metals Hedged to CAD Index ETF ZMT
- Evolve European Banks Enhanced Yield EBNK
- Manulife Multifactor Canadian SMID Cap Index ETF MCSM
- iShares S&P/TSX Global Base Metals Index ETF XBM
Metrics for the Best-Performing ETFs
BMO Equal Weight Global Gold Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.6%
- Morningstar Category: Precious Metals Equity
The best-performing ETF in 2025 was the C$294.7 million BMO Equal Weight Global Gold Index ETF. The passively managed BMO ETF returned 169.36%, outperforming the average precious metals equity fund, which gained 126.72%. Over the last three years, the fund has climbed 62.69%, outperforming the 47.42% gain on funds in its category, placing it in the 1st percentile for the period.
The Neutral-rated BMO Equal Weight Global Gold Index ETF launched in November 2012.
BMO Junior Gold Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.61%
- Morningstar Category: Precious Metals Equity
The C$236.1 million BMO Junior Gold Index ETF was the second-best-performing ETF in 2025, with a 152.98% gain. The passively managed BMO ETF beat the 126.72% gain on the average fund in Morningstar’s precious metals equity category for the year. Over the last three years, the fund has gained 54.70%, outperforming the 47.42% gain on funds in its category, placing it in the 44th percentile for the period.
The Neutral-rated BMO Junior Gold Index ETF launched in January 2010.
iShares S&P/TSX Global Gold Index ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.6%
- Morningstar Category: Precious Metals Equity
The C$4.1 billion iShares S&P/TSX Global Gold Index ETF ranked third for the year, returning 144.21%. The iShares ETF, which is passively managed, beat the 126.72% gain on the average precious metals equity fund. Over the past three years, the fund has risen 44.82%, underperforming the 47.42% gain on funds in its category, placing it in the 100th percentile for the period.
The Neutral-rated iShares S&P/TSX Global Gold Index ETF launched in March 2001.
Global X Gold Producer Equity Covered Call ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.77%
- Morningstar Category: Precious Metals Equity
The fourth-best-performing ETF in 2025 was the C$630.2 million Global X Gold Producer Equity Covered Call ETF. The passively managed Global X ETF returned 137.75%, outperforming the average precious metals equity fund, which gained 126.72%. Over the last three years, the fund has climbed 44.79%, underperforming the 47.42% gain on funds in its category, placing it in the 100th percentile for the period.
The Global X Gold Producer Equity Covered Call ETF has a Negative Morningstar Medalist Rating, meaning that our analysts expect it to be one of the worst performers within its category and think it is unlikely to deliver positive returns after fees.
iShares S&P/TSX Capped Materials Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.61%
- Morningstar Category: Natural Resources Equity
The C$453.8 million iShares S&P/TSX Capped Materials Index ETF ranked fifth for the year, returning 99.21%. The iShares ETF, which is passively managed, beat the 41.53% gain on the average natural resources equity fund. Over the past three years, the fund has risen 33.08%, outperforming the 16.68% gain on funds in its category, placing it in the 1st percentile for the period.
The Neutral-rated iShares S&P/TSX Capped Materials Index ETF launched in December 2005.
Global X Copper Producers Index ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.79%
- Morningstar Category: Natural Resources Equity
The C$67.4 million Global X Copper Producers Index ETF was the sixth-best-performing ETF in 2025, with a 66.62% gain. The passively managed Global X ETF beat the 41.53% gain on the average fund in Morningstar’s natural resources equity category for the year. Over the last three years, the fund has gained 28.85%, outperforming the 16.68% gain on funds in its category, placing it in the 2nd percentile for the period.
The Negative-rated Global X Copper Producers Index ETF launched in May 2022.
BMO Equal Weight Global Base Metals Hedged to CAD Index ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.61%
- Morningstar Category: Natural Resources Equity
The C$48.1 million BMO Equal Weight Global Base Metals Hedged to CAD Index ETF ranked seventh for the year, returning 62.57%. The BMO ETF, which is passively managed, beat the 41.53% gain on the average natural resources equity fund. Over the past three years, the fund has risen 29.69%, outperforming the 16.68% gain on funds in its category, placing it in the 1st percentile for the period.
The Neutral-rated BMO Equal Weight Global Base Metals Hedged to CAD Index ETF launched in October 2009.
Evolve European Banks Enhanced Yield
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.84%
- Morningstar Category: Financial Services Equity
The C$125 million Evolve European Banks Enhanced Yield was the eighth-best-performing ETF in 2025, with a 61.91% gain. The passively managed Evolve Funds ETF beat the 19.91% gain on the average fund in Morningstar’s financial services equity category for the year. Over the last three years, the fund has gained 35.99%, outperforming the 17.19% gain on funds in its category, placing it in the 1st percentile for the period.
The Neutral-rated Evolve European Banks Enhanced Yield launched in January 2022.
Manulife Multifactor Canadian SMID Cap Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.56%
- Morningstar Category: Canadian Small/Mid Cap Equity
The C$421.6 million Manulife Multifactor Canadian SMID Cap Index ETF ranked ninth for the year, returning 56.65%. The Manulife ETF, which is passively managed, beat the 21.21% gain on the average Canadian small/mid cap equity fund. Over the past three years, the fund has risen 25.30%, outperforming the 15.48% gain on funds in its category, placing it in the 1st percentile for the period.
The Neutral-rated Manulife Multifactor Canadian SMID Cap Index ETF launched in November 2017.
iShares S&P/TSX Global Base Metals Index ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.6%
- Morningstar Category: Natural Resources Equity
The C$383.8 million iShares S&P/TSX Global Base Metals Index ETF was the tenth-best-performing ETF in 2025, with a 51.03% gain. The passively managed iShares ETF beat the 41.53% gain on the average fund in Morningstar’s natural resources equity category for the year. Over the last three years, the fund has gained 17.98%, outperforming the 16.68% gain on funds in its category, placing it in the 77th percentile for the period.
The Neutral-rated iShares S&P/TSX Global Base Metals Index ETF launched in April 2011.
What Are ETFs?
Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more ETFs have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently cryptocurrency.
The Best ETFs: More Ideas to Consider
- Read the latest articles on ETFs.
- Use the ETF screener to find the best ETFs according to your specific criteria. You can search for funds based on their fees, Morningstar Medalist Ratings, manager tenures, and more.
