Exchange-traded funds, or ETFs, 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 the second quarter of 2026, the top-performing ETFs included global equity fund Middlefield Innovation Dividend ETF MINN and US equity fund iShares MSCI USA Momentum Factor Index ETF XMTM. 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 quarter’s best-performing ETFs, we screened equity, allocation, and fixed income funds that trade within Canada for those that have at least C$10 million in total assets. We narrowed the list to only 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, two funds fell into the emerging markets equity category, where the average name rose 10.78% in the second quarter.
The 10 Best-Performing ETFs for Q2 2026
- Middlefield Innovation Dividend ETF MINN
- iShares MSCI USA Momentum Factor Index ETF XMTM
- iShares MSCI USA Value Factor Index ETF XVLU
- Fidelity Global Innovators ETF FINN
- BMO MSCI USA Value Index ETF ZVU
- CI Emerging Markets Alpha ETF CIEM.U
- iShares MSCI Emerging Markets ex China Index ETF XEMC
- Invesco ESG NASDAQ 100 Index ETF QQCE
- Hamilton Canadian Bank Mean Reversion Index ETF HCA
- RBC Canadian Bank Yield Index ETF RBNK
Metrics for the Best-Performing ETFs
Middlefield Innovation Dividend ETF
- : ★★★★★Morningstar Rating
- : 1.28%Expense Ratio
- : Global EquityMorningstar Category
The C$129.7 million Middlefield Innovation Dividend ETF ranked first for the quarter, returning 45.66%. The Middlefield ETF, which is actively managed, beat the 6.04% gain on the average global equity fund. Over the past year, the fund has risen 52.89%, outperforming the 22.25% gain on funds in its category, placing it in the 3rd percentile for the period.
The Bronze-rated Middlefield Innovation Dividend ETF launched in March 2018.
iShares MSCI USA Momentum Factor Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.31%
- Morningstar Category: US Equity
The C$39.7 million iShares MSCI USA Momentum Factor Index ETF was the second-best-performing ETF in the second quarter, with a 45.31% gain. The passively managed BlackRock ETF beat the 9.16% gain on the average fund in Morningstar’s US equity category for the quarter. Over the last year, the fund has gained 49.07%, outperforming the 24.17% gain on funds in its category, placing it in the 2nd percentile for the period.
The Gold-rated iShares MSCI USA Momentum Factor Index ETF launched in September 2019.
iShares MSCI USA Value Factor Index ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.31%
- Morningstar Category: US Equity
The third-best-performing ETF in the second quarter was the C$90.5 million iShares MSCI USA Value Factor Index ETF. The passively managed BlackRock ETF returned 43.20%, outperforming the average US equity fund, which gained 9.16%. Over the last year, the fund has climbed 86.16%, outperforming the 24.17% gain on funds in its category, placing it in the 1st percentile for the period.
The Gold-rated iShares MSCI USA Value Factor Index ETF launched in September 2019.
Fidelity Global Innovators ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 1.08%
- Morningstar Category: Global Equity
The C$2.9 billion Fidelity Global Innovators ETF ranked fourth for the quarter, returning 42.01%. The Fidelity International ETF, which is actively managed, beat the 6.04% gain on the average global equity fund. Over the past year, the fund has risen 64.63%, outperforming the 22.25% gain on funds in its category, placing it in the 1st percentile for the period.
The Gold-rated Fidelity Global Innovators ETF launched in May 2023.
BMO MSCI USA Value Index ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.34%
- Morningstar Category: US Equity
The fifth-best-performing ETF in the second quarter was the C$197.4 million BMO MSCI USA Value Index ETF. The passively managed BMO ETF returned 41.36%, outperforming the average US equity fund, which gained 9.16%. Over the last year, the fund has climbed 83.47%, outperforming the 24.17% gain on funds in its category, placing it in the 1st percentile for the period.
The Bronze-rated BMO MSCI USA Value Index ETF launched in October 2017.
CI Emerging Markets Alpha ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 1.07%
- Morningstar Category: Emerging Markets Equity
The C$156.9 million CI Emerging Markets Alpha ETF was the sixth best-performing ETF in the second quarter, with a 34.94% gain. The actively managed CI Investments ETF beat the 10.78% gain on the average fund in Morningstar’s emerging markets equity category for the quarter. Over the last year, the fund has gained 66.98%, outperforming the 53.17% gain on funds in its category, placing it in the 6th percentile for the period.
The Bronze-rated CI Emerging Markets Alpha ETF launched in August 2021.
iShares MSCI Emerging Markets ex China Index ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.31%
- Morningstar Category: Emerging Markets Equity
The seventh-best-performing ETF in the second quarter was the C$150.9 million iShares MSCI Emerging Markets ex China Index ETF. The passively managed BlackRock ETF returned 32.82%, outperforming the average emerging markets equity fund, which gained 10.78%. Over the last year, the fund has climbed 71.87%, outperforming the 53.17% gain on funds in its category, placing it in the 3rd percentile for the period.
The Neutral-rated iShares MSCI Emerging Markets ex China Index ETF was launched in February 2023.
Invesco ESG NASDAQ 100 Index ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.21%
- Morningstar Category: US Equity
The C$1.1 billion Invesco ESG NASDAQ 100 Index ETF ranked eighth for the quarter, returning 31.70%. The CI Investments ETF, which is passively managed, beat the 9.16% gain on the average US equity fund. Over the past year, the fund has risen 41.38%, outperforming the 24.17% gain on funds in its category, placing it in the 2nd percentile for the period.
The Gold-rated Invesco ESG NASDAQ 100 Index ETF launched in November 2021.
Hamilton Canadian Bank Mean Reversion Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.45%
- Morningstar Category: Financial Services Equity
The ninth-best-performing ETF in the second quarter was the C$108.2 million Hamilton Canadian Bank Mean Reversion Index ETF. The passively managed Hamilton Capital ETF returned 31.45%, outperforming the average financial services equity fund, which gained 7.21%. Over the last year, the fund has climbed 74.88%, outperforming the 32.49% gain on funds in its category, placing it in the 3rd percentile for the period.
The Neutral-rated Hamilton Canadian Bank Mean Reversion Index ETF launched in June 2020.
RBC Canadian Bank Yield Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.32%
- Morningstar Category: Financial Services Equity
The C$510.3 million RBC Canadian Bank Yield Index ETF ranked tenth for the quarter, returning 30.25%. The RBC ETF, which is passively managed, beat the 7.21% gain on the average financial services equity fund. Over the past year, the fund has risen 72.22%, outperforming the 32.49% gain on funds in its category, placing it in the 5th percentile for the period.
The Silver-rated RBC Canadian Bank Yield Index ETF launched in October 2017.
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.
