Exchange-traded funds, or ETFs, 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 May 2024, the top-performing ETFs included global small/mid cap equity fund BMO Clean Energy Index ETF ZCLN and precious metals equity fund BMO Junior Gold Index ETF ZJG. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
To find the month’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, known as ETNs.
The 10 Best-Performing ETFs for May 2024:
- BMO Clean Energy Index ETF ZCLN
- BMO Junior Gold Index ETF ZJG
- BMO Equal Weight Global Gold Index ETF ZGD
- Fidelity US Momentum ETF FCMO
- RBC Quant US Dividend Leaders (CAD Hedged) ETF RUDH
- Invesco NASDAQ 100 Index ETF QQC.F
- BMO Nasdaq 100 Equity Hedged to CAD Index ETF ZQQ
- iShares NASDAQ 100 Index ETF (CAD-Hedged) XQQ
- Middlefield Sustainable Infrastructure Dividend ETF MINF
- iShares S&P/TSX Capped Materials Index ETF XMA
Metrics for the Best-Performing ETFs
BMO Clean Energy Index ETF
- Morningstar Rating: 1 star
- Expense Ratio: 0.39%
- Morningstar Category: Global Small/Mid Cap Equity
The C$74 million BMO Clean Energy Index ETF was the best-performing ETF in May, with a 12.34% return. The passively managed BMO ETF beat the 3.00% decline on the average fund in Morningstar’s global small/mid cap equity category for the month. Over the last 12 months, the BMO Clean Energy Index ETF has lost 16.86%, underperforming the 7.24% gain on the average fund in its category, leaving the ETF in the 92nd percentile.
The BMO Clean Energy Index ETF takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Silver.
BMO Junior Gold Index ETF
- Morningstar Rating: 2 stars
- Expense Ratio: 0.61%
- Morningstar Category: Precious Metals Equity
The second-best-performing ETF in May was the C$69 million BMO Junior Gold Index ETF. The passively managed BMO ETF returned 10.71%, outperforming the average precious metals equity fund, which gained 6.11%. Looking back over the last 12 months, the BMO Junior Gold Index ETF has returned 18.39%, outperforming the 0.13% return on the average fund in its category, leaving the ETF in the 40th percentile.
The Neutral-rated BMO Junior Gold Index ETF was launched in January 2010.
BMO Equal Weight Global Gold Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.60%
- Morningstar Category: Precious Metals Equity
The C$61 million BMO Equal Weight Global Gold Index ETF ranked third for the month, returning 9.62%. The BMO ETF, which is passively managed, topped the 6.11% average return on funds in the precious metals equity category for May. Over the last 12 months, the BMO ETF has returned 23.69%, ahead of the 0.13% gain on the average fund in its category, leaving the ETF in the 10th percentile.
The BMO Equal Weight Global Gold Index ETF, launched in November 2012, has a Morningstar Medalist Rating of Bronze.
Fidelity US Momentum ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.37%
- Morningstar Category: US Equity
With a 6.84% return, the C$213 million Fidelity US Momentum ETF ranked fourth in May. The passively managed Fidelity International ETF outperformed the 3.12% loss on the average US equity fund. Over the last 12 months, the fund has gained 44.63%, ahead of the 21.50% return on funds in its category, placing it in the 1st percentile for the period.
The Fidelity US Momentum ETF has a Silver Morningstar Medalist Rating. It was launched in June 2020.
RBC Quant US Dividend Leaders (CAD Hedged) ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 0.43%
- Morningstar Category: US Dividend & Income Equity
The fifth-best-performing ETF was the C$135 million RBC Quant US Dividend Leaders (CAD Hedged) ETF, which gained 6.38% in May. This actively managed RBC ETF beat the 2.48% average loss on funds in the US dividend & income equity category. Over the past year, the RBC Quant US Dividend Leaders (CAD Hedged) ETF rose 33.62%, outperforming the 13.36% return on the average fund in its category and placing it in the 4th percentile.
The RBC Quant US Dividend Leaders (CAD Hedged) ETF, launched in October 2014, has a Morningstar Medalist Rating of Silver.
Invesco NASDAQ 100 Index ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 0.20%
- Morningstar Category: US Equity
The C$1.2 billion Invesco NASDAQ 100 Index ETF was the sixth-best-performing Canadian ETF in May, with a 6.31% return. The return on the passively managed Invesco ETF topped the 3.12% decline on the average fund in Morningstar’s US equity category. Looking back over the last 12 months, the Invesco NASDAQ 100 Index ETF has returned 29.03%, outperforming the 21.50% return on the average fund in its category, leaving the ETF in the 24th percentile.
The Neutral-rated Invesco NASDAQ 100 Index ETF was launched in June 2011.
BMO Nasdaq 100 Equity Hedged to CAD Index ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 0.39%
- Morningstar Category: US Equity
The seventh-best-performing ETF in May was the C$2 billion BMO Nasdaq 100 Equity Hedged to CAD Index ETF. The passively managed BMO ETF returned 6.26%, outperforming the average US equity fund, which lost 3.12%. Looking back over the last 12 months, the BMO Nasdaq 100 Equity Hedged to CAD Index ETF has returned 28.83%, outperforming the 21.50% return on the average fund in its category, leaving the ETF in the 25th percentile.
The BMO Nasdaq 100 Equity Hedged to CAD Index ETF has a Morningstar Medalist Rating of Silver. It was launched in January 2010.
iShares NASDAQ 100 Index ETF (CAD-Hedged)
- Morningstar Rating: 4 stars
- Expense Ratio: 0.39%
- Morningstar Category: US Equity
The C$2.9 billion iShares NASDAQ 100 Index ETF (CAD-Hedged) ranked eighth for the month, returning 6.25%. The iShares ETF, which is passively managed, topped the 3.12% average loss on funds in the US equity category. Over the last 12 months, the iShares ETF has returned 28.83%, ahead of the 21.50% return on the average fund in its category, leaving it in the 26th percentile for performance.
The Silver-rated iShares NASDAQ 100 Index ETF (CAD-Hedged) was launched in May 2011.
Middlefield Sustainable Infrastructure Dividend ETF
- Morningstar Rating: 1 star
- Expense Ratio: 1.79%
- Morningstar Category: Global Infrastructure Equity
With a 6.21% gain, the C$28 million Middlefield Sustainable Infrastructure Dividend ETF ranked ninth in May. The actively managed Middlefield ETF outperformed the 1.04% loss on the average global infrastructure equity fund. Over the last 12 months, the fund has returned 9.11%, ahead of the 1.09% loss on funds in its category, placing it in the 42nd percentile.
The Middlefield Sustainable Infrastructure Dividend ETF, launched in March 2020, has a Morningstar Medalist Rating of Neutral.
iShares S&P/TSX Capped Materials Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.60%
- Morningstar Category: Natural Resources Equity
The tenth-best performing ETF was the C$164 million iShares S&P/TSX Capped Materials Index ETF, which gained 6.20% in May. The passively managed iShares ETF beat the 4.54% average return on funds in the natural resources equity category. Over the past year, the iShares S&P/TSX Capped Materials Index ETF rose 16.93%, outperforming the 7.69% return on the average fund in its category and placing it in the 74th percentile.
The iShares S&P/TSX Capped Materials Index ETF has a Morningstar Medalist Rating of Gold. It was launched in December 2005.
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.
This article was generated with the help of automation and reviewed by Morningstar editors.
