Exchange-traded funds are often low-cost instruments for investors to track popular indexes or leverage experienced manager choices in an attempt to beat the market. The best ones serve as building blocks for a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In the second quarter of 2025, the top-performing ETFs included natural resources equity fund BMO Equal Weight Global Base Metals Hedged to CAD Index ETF ZMT and US equity fund Guardian i3 US Quality Growth Fund GIQU. Data in this article is sourced from Morningstar Direct.
To read about the worst-performing ETFs, check out our other story.
Screening for the Best-Performing ETFs
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 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 Q2 2025
- BMO Equal Weight Global Base Metals Hedged to CAD Index ETF ZMT
- Guardian i3 US Quality Growth Fund GIQU
- Evolve Future Leadership Fund LEAD
- Franklin Innovation Fund FINO
- Invesco NASDAQ 100 Index ETF QQC.F
- iShares NASDAQ 100 Index ETF (CAD-Hedged) XQQ
- Evolve Innovation Index Fund EDGE
- Global X Equal Weight Canadian Banks Index Corporate Class ETF HEWB
- BMO Equal Weight Banks Index ETF ZEB
- Middlefield Innovation Dividend ETF MINN
Metrics for the Best-Performing ETFs
BMO Equal Weight Global Base Metals Hedged to CAD Index ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.61%
- Morningstar Category: Natural Resources Equity
The C$26 million BMO Equal Weight Global Base Metals Hedged to CAD Index ETF was the best-performing ETF in the quarter, with a 21.64% return. The passively managed fund beat the 3.53% gain on the average fund in Morningstar’s natural resources equity category for the quarter. Over the last 12 months, the ETF has returned 13.97%, outperforming the 2.48% gain on the average fund in its category, leaving the ETF in the 55th percentile.
The BMO Equal Weight Global Base Metals Hedged to CAD Index ETF has a Negative Morningstar Medalist Rating, meaning our analysts expect it to be one of the worst performers within its category and think it is unlikely to unlikely to deliver positive returns after fees.
Guardian i3 US Quality Growth Fund
- Morningstar Rating: ★★★
- Expense Ratio: 0.71%
- Morningstar Category: US Equity
The second-best-performing ETF was the C$20 million Guardian i3 US Quality Growth Fund. The actively managed fund returned 20.45%, outperforming the average US equity fund, which lost 4.80%. Looking back over the last year, the ETF has returned 13.56%, outperforming the 10.58% return on the average fund in its category, leaving it in the 32nd percentile.
The Neutral-rated Guardian i3 US Quality Growth Fund launched in August 2020.
Evolve Future Leadership Fund
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.85%
- Morningstar Category: Global Equity
The C$21 million Evolve Future Leadership Fund ranked third for the quarter, returning 18.80%. The fund, which is actively managed, topped the 1.92% average loss on funds in the global equity category for the second quarter. Over the last 12 months, the ETF has returned 27.75%, ahead of the 11.27% gain on the average fund in its category, leaving the ETF in the 3rd percentile.
The Evolve Future Leadership Fund, launched in September 2020, has a Morningstar Medalist Rating of Neutral.
Franklin Innovation Fund
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.9%
- Morningstar Category: Global Equity
With a 17.96% return, the C$30 million Franklin Innovation Fund ranked fourth in the quarter. The actively managed fund outperformed the 1.92% loss on the average global equity fund. Over the last year, the fund has gained 16.09%, ahead of the 11.27% return on funds in its category, placing it in the 22nd percentile.
The Franklin Innovation Fund has a Neutral Morningstar Medalist Rating. It launched in February 2021.
Invesco NASDAQ 100 Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.21%
- Morningstar Category: US Equity
The fifth-best-performing ETF was the C$2 billion Invesco NASDAQ 100 Index ETF, which gained 17.08% in the quarter. This passively managed fund beat the 4.8% average loss on funds in the US equity category. Over the past 12 months, the ETF rose 13.97%, outperforming the 10.58% return on the average fund in its category and placing it in the 27th percentile.
The Invesco NASDAQ 100 Index ETF, launched in June 2011, has a Morningstar Medalist Rating of Neutral.
iShares NASDAQ 100 Index ETF (CAD-Hedged)
- Morningstar Rating: ★★★★
- Expense Ratio: 0.39%
- Morningstar Category: US Equity
The C$3.7 billion iShares NASDAQ 100 Index ETF (CAD-Hedged) was the sixth-best-performing Canadian ETF in the second quarter, with a 17.02% return. The return on the passively managed iShares ETF topped the 4.8% decline on the average fund in Morningstar’s US equity category. Looking back over the last year, the iShares NASDAQ 100 Index ETF (CAD-Hedged) has returned 13.76%, outperforming the 10.58% return on the average fund in its category, leaving the ETF in the 29th percentile.
The Bronze-rated iShares NASDAQ 100 Index ETF (CAD-Hedged) was launched in May 2011.
Evolve Innovation Index Fund
- Morningstar Rating: ★★
- Expense Ratio: 0.32%
- Morningstar Category: Global Equity
The seventh-best-performing ETF was the C$44 million Evolve Innovation Index Fund. The passively managed fund returned 15.94%, outperforming the average global equity fund, which lost 1.92%. Looking back over the last 12 months, the ETF has returned 20.07%, outperforming the 11.27% return on the average fund in its category, leaving it in the 8th percentile.
The Evolve Innovation Index Fund has a Morningstar Medalist Rating of Bronze. It launched in April 2018.
Global X Equal Weight Canadian Banks Index Corporate Class ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.28%
- Morningstar Category: Financial Services Equity
The C$189 million Global X Equal Weight Canadian Banks Index Corporate Class ETF ranked eighth for the quarter, returning 15.32%. The fund, which is passively managed, topped the 0.49% average gain on funds in the financial services equity category. Over the last year, the ETF has returned 37.17%, ahead of the 23.80% return on the average fund in its category, leaving it in the 20th percentile for performance.
The Neutral-rated Global X Equal Weight Canadian Banks Index Corporate Class ETF launched in January 2019.
BMO Equal Weight Banks Index ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.28%
- Morningstar Category: Financial Services Equity
With a 15.31% gain, the C$3.9 billion BMO Equal Weight Banks Index ETF ranked ninth in the quarter. The passively managed fund outperformed the 0.49% return on the average financial services equity fund. Over the last 12 months, the ETF has returned 37.11%, ahead of the 23.80% return on funds in its category, placing it in the 25th percentile.
The BMO Equal Weight Banks Index ETF, launched in October 2009, has a Morningstar Medalist Rating of Neutral.
Middlefield Innovation Dividend ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 1.4%
- Morningstar Category: Global Equity
The tenth-best-performing ETF was the C$96 million Middlefield Innovation Dividend ETF, which gained 14.61% in the quarter. The actively managed fund beat the 1.92% average loss on funds in the global equity category. Over the past year, the ETF rose 15.76%, outperforming the 11.27% return on the average fund in its category and placing it in the 25th percentile.
The Middlefield Innovation Dividend ETF has a Morningstar Medalist Rating of Neutral. It was launched in March 2018.
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
Investors who would like to find more of the top-performing or cheapest ETFs can do the following:
- Use the ETF Screener tool 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.
- Find ideas specific to your needs, or learn more about ETFs, on our ETF Insights page.
- Compare funds and ETFs side by side and easily follow their valuations, ratings, and fees.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Andrew Willis. It was generated with the help of automation and reviewed by Morningstar editors.
