Morningstar

Top-Performing Global Equity Funds

iShares and Vanguard dominate the list of the best-performing global equity funds for Canadian investors.

Illustration of medalist fund ratings

To screen for the top-performing funds in the global equity category, we looked for those with the best returns over the last one-, three-, and five-year periods. Offerings from iShares stood out, taking up three of the six spots.

Global Equity Funds Performance

Over the last 12 months, the global equity category returned 12.47%. On an annualized rate, global equity funds have returned 16.36% over the last three years and 10.12% over the last five. Meanwhile, the Morningstar Canada Index has returned 25.23% over the last 12 months, 19.50% per year over the last three years, and 16.65% per year over the last five years.

What Are Global Equity Funds?

Funds in the global equity category invest in securities domiciled anywhere across the globe such that their average market capitalization is greater than the small/mid-cap threshold, and invest more than 10% and less than 90% of their equity holdings in Canada or the United States, according to the Canadian Investment Funds Standards Committee. Funds that do not meet any of the requirements of other geographic equity categories and have no formal restrictions that limit where they can invest will be assigned to this category.

Screening for the Top-Performing Global Equity Funds

We looked at returns from the past one, three, and five years using data available in Morningstar Direct. We screened for Canada-domiciled open-ended and exchange-traded funds in the top 33% of the category using their lowest-cost primary share classes for those periods. We also filtered for funds with a Morningstar Medalist Rating of Bronze, Silver, or Gold. We excluded funds with assets under C$100 million and analyst coverage that was less than 75%. This left six investments.

Because the screen was created with the lowest-cost share class for each fund, some may be listed with share classes that are not accessible to individual investors, or they may be aimed at institutional investors and require large minimum investments. The individual investor versions of those funds may carry higher fees, reducing returns to shareholders. In addition, Medalist Ratings may differ among the share classes of a fund.

iShares MSCI World Index ETF

Over the past year, this fund rose 17.14%, while the average fund in its category rose 12.47%. The fund, launched in June 2009, has climbed 21.29% over the past three years and 14.32% over the past five. iShares MSCI World Index ETF isn’t the most comprehensive global stock fund available, but it captures most of the global market for a relatively low fee.

The fund tracks the MSCI World Index, which covers large- and mid-cap stocks listed in developed markets around the world. It weights its holdings by market cap, an approach that benefits investors by capturing the market’s consensus opinion of each stock’s value while mitigating turnover. Market-cap weighting can be tough to beat because the market does a good job valuing stocks over the long run. Occasionally, it will increase the fund’s exposure to expensive stocks when investors get excited about an area of the market. But this doesn’t undermine its long-term efficacy.

Broad diversification dampens the impact of the worst performers on the fund’s overall performance. The portfolio holds more than 1,300 stocks, and its 10 largest positions represent only 22% of its assets. The managers almost fully replicate the benchmark. The portfolio’s diversification benefits extend to its regional exposures. It captures most of the global market cap, spreading its assets across major developed markets like the US, Europe, and Japan. US stocks account for more than two-thirds of the global market, so major American companies rank among the fund’s largest holdings.

The fund’s long-term performance has been outstanding. It beat the global equity Morningstar Category average by 3.2 percentage points annualized over the 10 years through December 2024. The fund’s relatively low expense ratio and overweighting in US stocks were its biggest advantages. While it remains relatively inexpensive, there are similar alternatives available that charge substantially less.

—Daniel Sotiroff, senior analyst

Vanguard FTSE Global All Cap ex Canada Index ETF

This C$2.8 billion fund has climbed 17.83% over the past year, outperforming the average fund in its category, which rose 12.47%. The Vanguard fund, launched in June 2014, has climbed 20.61% over the past three years and 13.05% over the past five. Vanguard FTSE Global All-Cap ex Canada Index ETF is an excellent choice for exposure to stocks listed outside of Canada. Its extensive portfolio and rock-bottom management expense ratio should prove tough to beat.

The fund tracks the FTSE Global All-Cap ex Canada China A Inclusion Index. Its broad portfolio includes stocks from developed markets (excluding Canada) and emerging markets, including China A-shares. It weights its holdings by market cap, an approach that benefits investors by capturing the market’s consensus opinion of each stock’s value while mitigating turnover. Market cap weighting can be tough to beat because the market tends to do a good job of valuing stocks over the long run. Occasionally, it will increase the fund’s exposure to expensive stocks when investors get excited about an area of the market. But this doesn’t undermine its long-term efficacy.

Broad diversification mitigates the impact of the worst performers on the fund’s overall performance. The target index holds more than 10,000 stocks, and the managers near fully replicate its holdings. Its 10 largest names account for only 22% of its assets. The portfolio’s diversification benefits extend to its regional exposures. It captures the available global market cap outside of Canada, with US stocks accounting for a little more than 66% of its assets.

Stocks from emerging markets typically make up 10% of the portfolio. Companies from these markets are riskier, but their relatively small stake shouldn’t hurt the fund’s long-term performance. China A-shares represent about 0.5 percentage points of the fund’s assets. Including them improves the fund’s reach without adding much to its risk.

The fund’s track record is short but exceptional. It beat the global equity Morningstar Category average by 2.5 percentage points annualized from its June 2014 launch through December 2024. Its ultralow 0.22% management expense ratio was responsible for most of its advantage and should continue to give the fund an edge.

—Daniel Sotiroff, senior analyst

iShares Core MSCI All Country World ex Canada Index ETF

This C$3.5 billion fund has gained 17.70% over the past year, while the average fund in its category is up 12.47%. The fund, launched in February 2015, has climbed 20.49% over the past three years and 13.26% over the past five. iShares Core MSCI All Country World ex Canada Index ETF is an outstanding foreign-stock fund that charges one of the lowest fees in the global equity category.

The fund tracks the MSCI ACWI ex Canada Investable Market Index, which includes stocks of all sizes listed in markets outside of Canada. It weights its holdings by market cap, an approach that benefits investors by capturing the market’s consensus opinion of each stock’s value while mitigating turnover. Markets generally get long-term prices correct, but they can make mistakes. Investors can drive valuations up if they get excited about a particular area of the market, and market-cap weighting will increase the fund’s exposure to it.

Broad diversification mitigates the impact of the worst performers on the fund’s overall performance. The portfolio represents more than 8,000 stocks, while its 10 largest names account for only 22% of its assets.

The portfolio’s diversification benefits extend to its regional exposures. It captures a majority of the global market cap, with US stocks accounting for just over 67% of its assets. American companies like Apple, Microsoft, and Nvidia rank among its largest holdings. Stocks from emerging markets make up an additional 10% of the portfolio. Companies from these markets are riskier, but their relatively small stake shouldn’t hurt long-term performance.

The fund’s track record is short but outstanding. It beat the global equity category average by 2.5 percentage points annualized from its launch in February 2015 through December 2024. The fund’s ultralow 0.22% management expense ratio fueled most of its advantage, and it should continue to give the fund an edge over its more expensive competitors.

—Daniel Sotiroff, senior analyst

Fidelity Global Innovators Class

The C$23.1 billion fund has climbed 25.22% over the past year, outperforming the average fund in its category, which rose 12.47%. The fund, launched in November 2017, has climbed 38.22% over the past three years and 19.07% over the past five.

Fidelity Global Innovators, including its exchange-traded fund, earns an upgrade to its People Pillar rating to High from Above Average, reflecting portfolio manager Mark Schmehl’s many strengths. A drop in the Morningstar Medalist Rating of several share classes is not caused by diminished conviction in the strategy’s People or Process ratings, but reflects a change in the way Morningstar calculates the excess return opportunity for funds.

Mark Schmehl has managed this strategy since its 2017 inception. He draws on decades of investment experience and broad sector knowledge developed since joining Fidelity in 1999. He also runs other successful funds, including Fidelity Canadian Growth Company and Fidelity Special Situations. His background and experience fuel the strategy’s requirement for fast thinking, high conviction, and familiarity with multiple areas of the market. Schmehl works closely with Fidelity’s massive team of experienced analysts.

Schmehl’s process is hard to replicate. It focuses on companies with weak fundamentals that are starting to improve, as well as firms at the forefront of innovation with high expectations. The fund usually favors the latter, driving a momentum bias, but Schmehl has shown skill in guiding the high-octane strategy with the necessary conviction. Risk management relies on his judgment and swift sell discipline, which has helped limit downside. He is comfortable with lofty valuations and will likely underperform the market when cheap stocks are in vogue.

Fidelity Global Innovators can invest globally, but US stocks have typically accounted for 80%-95% of assets, reflecting Schmehl’s awareness of the strategy’s Nasdaq Composite Index benchmark. Schmehl has shown flexibility, however, going beyond typical growth sectors to invest meaningfully in areas like energy and regions outside the US at times.

Performance has been outstanding under Schmehl. From December 2017 through September 2025, the fund’s F series returned 24.4% annualized, well ahead of the global equity Morningstar Category average of 9.0%, the Morningstar Global Markets Index’s 12.0%, and the Nasdaq Composite Index’s gain of 18.6%.

Investors should carefully weigh the potential for strong returns against the fund’s high volatility and active risk. Schmehl’s central role here makes key-person risk significant; under a different skipper, the strategy’s prospects could change materially.

—Luke Richardson, analyst

Vanguard All-Equity ETF Portfolio

Over the past year, the Vanguard fund rose 19.55%, while the average fund in its category rose 12.47%. The fund, launched in January 2019, has climbed 19.96% over the past three years and 13.98% over the past five. Vanguard’s Allocation exchange-traded funds deliver a set of compelling global portfolios efficiently managed and effectively constructed. There aren’t a lot of moving parts, but prudent groups constantly seek out refinements, which keeps prospects bright.

Morningstar has enhanced the way we assess alpha opportunity for funds, which is a key component in our Morningstar Medalist Rating calculation. Because of this, more of this strategy’s Medalist Ratings than usual may change with this update, even absent changes to pillar ratings or fund costs.

The five risk options—Conservative Income, Conservative, Balanced, Growth, and All-Equity—target a 20%, 40%, 60%, 80%, and 100% equity weighting, respectively, with a 2% threshold for rebalancing. The ETFs hold seven (four for All-Equity) underlying index-tracking Vanguard ETFs. The mutual fund versions hold the allocation ETFs directly.

Vanguard’s equity index group handles trading and cash flow management for the series and underlying equity ETFs. The fixed-income group manages the underlying fixed-income ETFs. The diverse group of holdings vitally keeps costs low. Its mix of US-domiciled and Canada-domiciled ETFs includes Vanguard US Total Market ETF and Vanguard FTSE Canada All Cap ETF. Both earn Morningstar Medalist Ratings of Gold as of June 2025. Altogether, the series comes at a cost of 24 basis points across all five options, making fees its most attractive feature and largest strength over most peers.

Oversight for the allocation ETFs comes from both the investment strategy group and the strategic asset allocation committee. The former is a global team of 70 members that conducts investment research and proposes changes to a wide array of Vanguard funds. These proposals are approved or denied by the strategic asset allocation committee, a group of voters that includes various leaders at the firm.

One visible impact of these oversight groups is the persistent overweighting in Canadian equity, with a 30% target within the equity sleeve, higher than the 24% average for global balanced peers as of May 2025. The fixed income component similarly targets a 60% Canadian allocation, compared with 55% for the average peer.

The series generally has performed well, albeit with more risk, owing to most risk options holding higher equity weightings in each of their Morningstar Categories. Four of the five registered top-quartile returns over the trailing five years ending June 2025 and beat their respective category indexes. The lone exception–Vanguard Conservative Income ETF–had less equity than many in its global fixed-income balanced category.

—Michael Dobson, analyst

iShares Core Equity ETF Portfolio

The C$11.4 billion fund has gained 20.07% over the past year, while the average fund in its category is up 12.47%. The iShares fund, launched in August 2019, has climbed 20.18% over the past three years and 13.91% over the past five.

iShares Core Allocation ETFs make good use of cheap index-tracking funds to effectively provide broad coverage of various markets. There aren’t many active decisions made, but the team charged with structuring the series has made some minor but thoughtful adjustments.

An overhaul of the allocation ETFs resulted in the current five risk options–conservative balanced, income balanced, balanced, growth, and equity–by mid-August 2019. They hold neutral equity weights of 20%, 40%, 60%, 80%, and 100%, respectively. A redesign of the original two ETFs, Core Balanced and Core Growth, simplified the strategies and lowered its cost substantially. A nuanced rebalancing guideline realigns the portfolios when an asset class strays 10% away from its neutral weight.

For example, Core Balanced has a 32.0% weight in Canadian fixed income, so that asset class can fluctuate between 28.8% and 35.2%. Such allowances in targeted asset classes can trickle up to greater movement in the overall asset mix. For example, the iShares Core Balanced ETF’s equity weight rose from 57% in March 2020 to 63% in July 2021.

Various teams at BlackRock handle both the core allocation ETFs and their eight underlying index-tracking holdings, which represent some of the firm’s highest-rated strategies. The eight underlying strategies provide efficient exposure to wide asset classes, as reflected in their individual costs between 3 and 27 basis points. This structure is crucial to the series’ cost advantage.

However, the low-touch approach does limit the potential for outperformance. The product management and development team at BlackRock Canada serves as the guiding hand for these portfolios, choosing the weights and exposures of the blended benchmark each option follows. The team led the redesign of the core allocation ETFs in 2019, which set up the portfolio with an equity home bias like peers and a fixed-income sleeve tilted toward Canada.

The series has produced mixed results. Since the rework in August 2019 through September 2024, the average excess return across the series over their respective Morningstar Category benchmarks was near-zero. This has some bright spots–the balanced and growth options beat their benchmarks and the median category peer over that same time. The last three years also show strength, with the same two strategies producing top-quartile returns in their categories.

Low fees across the series are the most compelling feature here. At 20 basis points, they are nearly the cheapest allocation strategies in Canada.

—Michael Dobson, analyst

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.

© Copyright 2026 Morningstar, Inc. All rights reserved.