Exchange-traded funds are often low-cost instruments for tracking popular indexes or leveraging experienced manager choices to beat the market. The best 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 July 2026, the top-performing ETFs included energy equity funds iShares S&P/TSX Capped Energy Index ETF XEG and CI Energy Giants Covered Call ETF NXF.B. 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 month’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 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.
The 10 Best-Performing ETFs for July 2026
- iShares S&P/TSX Capped Energy Index ETF XEG
- CI Energy Giants Covered Call ETF NXF.B
- Harvest Energy Leaders Income ETF HPF
- iShares China Index ETF XCH
- BMO MSCI China Selection Equity Index ETF ZCH
- BMO Covered Call Energy ETF ZWEN
- BMO Equal Weight Oil & Gas Index ETF ZEO
- Fidelity International High Dividend ETF FCID
- CI US & Canada Lifeco Covered Call ETF (Hedged Common Units) FLI
- iShares Core MSCI Canadian Quality Dividend Index ETF XDIV
Metrics for the Best-Performing ETFs
iShares S&P/TSX Capped Energy Index ETF
- : ★★★Morningstar Rating
- : 0.6%Expense Ratio
- : Energy EquityMorningstar Category
The C$2.2 billion iShares S&P/TSX Capped Energy Index ETF ranked first for the month, returning 16.31%. The BlackRock ETF, which is passively managed, beat the 4.44% loss on the average energy equity fund. Over the past year, the fund has risen 62.59%, outperforming the 35.86% gain on funds in its category, placing it in the 6th percentile for the period.
The Neutral-rated iShares S&P/TSX Capped Energy Index ETF launched in March 2001.
CI Energy Giants Covered Call ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.68%
- Morningstar Category: Energy Equity
The C$166.4 million CI Energy Giants Covered Call ETF was the second-best-performing ETF in July, with a 15.43% gain. The actively managed CI Investments ETF beat the 4.44% loss on the average fund in Morningstar’s energy equity category for the month. Over the last year, the fund has gained 42.02%, outperforming the 35.86% gain on funds in its category, placing it in the 46th percentile for the period.
The Neutral-rated CI Energy Giants Covered Call ETF launched in February 2015.
Harvest Energy Leaders Income ETF
- Morningstar Rating: ★
- Expense Ratio: 0.99%
- Morningstar Category: Energy Equity
The third-best-performing ETF in July was the C$65.9 million Harvest Energy Leaders Income ETF. The actively managed Harvest Portfolios ETF returned 15.03%, outperforming the average energy equity fund, which dropped 4.44%. Over the last year, the fund has climbed 46.77%, outperforming the 35.86% gain on funds in its category, placing it in the 32nd percentile for the period.
The Neutral-rated Harvest Energy Leaders Income ETF launched in October 2014.
iShares China Index ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.86%
- Morningstar Category: Greater China Equity
The C$192 million iShares China Index ETF ranked fourth for the month, returning 14.24%. The BlackRock ETF, which is passively managed, beat the 1.13% loss on the average Greater China equity fund. Over the past year, the fund has risen 0.42%, underperforming the 22.15% gain on funds in its category, placing it in the 89th percentile for the period.
The Neutral-rated iShares China Index ETF launched in January 2010.
BMO MSCI China Selection Equity Index ETF
- Morningstar Rating: ★
- Expense Ratio: 0.67%
- Morningstar Category: Greater China Equity
The fifth-best-performing ETF in July was the C$122.1 million BMO MSCI China Selection Equity Index ETF. The passively managed BMO ETF returned 12.68%, outperforming the average Greater China equity fund, which dropped 1.13%. Over the last year, the fund has climbed 0.06%, underperforming the 22.15% gain on funds in its category, placing it in the 100th percentile for the period.
The Neutral-rated BMO MSCI China Selection Equity Index ETF launched in January 2010.
BMO Covered Call Energy ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.72%
- Morningstar Category: Energy Equity
The C$129.1 million BMO Covered Call Energy ETF ranked sixth for the month, returning 11.34%. The BMO ETF, which is actively managed, beat the 4.44% loss on the average energy equity fund. Over the past year, the fund has risen 41.71%, outperforming the 35.86% gain on funds in its category, placing it in the 51st percentile for the period.
The Neutral-rated BMO Covered Call Energy ETF launched in January 2023.
BMO Equal Weight Oil & Gas Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.6%
- Morningstar Category: Energy Equity
The seventh-best-performing ETF in July was the C$442.5 million BMO Equal Weight Oil & Gas Index ETF. The passively managed BMO ETF returned 9.71%, outperforming the average energy equity fund, which dropped 4.44%. Over the last year, the fund has climbed 51.85%, outperforming the 35.86% gain on funds in its category, placing it in the 24th percentile for the period.
The Neutral-rated BMO Equal Weight Oil & Gas Index ETF launched in October 2009.
Fidelity International High Dividend ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.5%
- Morningstar Category: International Equity
The C$379.4 million Fidelity International High Dividend ETF ranked eighth for the month, returning 7.22%. The Fidelity International ETF, which is passively managed, beat the 2.86% gain on the average international equity fund. Over the past year, the fund has risen 32.02%, outperforming the 20.40% gain on funds in its category, placing it in the 8th percentile for the period.
The Gold-rated Fidelity International High Dividend ETF launched in September 2018.
CI US & Canada Lifeco Covered Call ETF (Hedged Common Units)
- Morningstar Rating: ★★
- Expense Ratio: 0.95%
- Morningstar Category: Financial Services Equity
The C$92.2 million CI US & Canada Lifeco Covered Call ETF (Hedged Common Units) was the ninth best-performing ETF in July, with a 6.77% gain. The actively managed CI Investments ETF lagged the 7.92% gain on the average fund in Morningstar’s financial services equity category for the month. Over the last year, the fund has gained 31.58%, underperforming the 38.57% gain on funds in its category, placing it in the 58th percentile for the period.
The Neutral-rated CI US & Canada Lifeco Covered Call ETF (Hedged Common Units) launched in August 2013.
iShares Core MSCI Canadian Quality Dividend Index ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.11%
- Morningstar Category: Canadian Dividend & Income Equity
The C$6.1 billion iShares Core MSCI Canadian Quality Dividend Index ETF ranked tenth for the month, returning 6.38%. The BlackRock ETF, which is passively managed, beat the 1.84% gain on the average Canadian dividend & income equity fund. Over the past year, the fund has risen 49.02%, outperforming the 28.18% gain on funds in its category, placing it in the second percentile for the period.
The Gold-rated iShares Core MSCI Canadian Quality Dividend Index ETF launched in June 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.
