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 the second quarter of 2024, the top-performing ETFs included global equity fund Middlefield Innovation Dividend ETF MINN and precious metals equity fund BMO Equal Weight Global Gold Index ETF ZGD. Data in this article is sourced from Morningstar Direct.
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 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.
Within our list, three funds fell into the precious metals equity category, where the average name rose 9.33% in the second quarter.
The 10 Best-Performing ETFs for Q2 2024:
- Middlefield Innovation Dividend ETF MINN
- BMO Equal Weight Global Gold Index ETF ZGD
- BMO Junior Gold Index ETF ZJG
- iShares China Index ETF XCH
- Guardian i3 Global Quality Growth ETF Unhedged GIQG.B
- iShares S&P/TSX Global Gold Index ETF XGD
- Global X NASDAQ-100 Index Corporate Class ETF HXQ.U
- TD Active US Enhanced Dividend ETF TUED
- Middlefield US Equity Dividend ETF MUSA
- BMO NASDAQ 100 Equity Index ETF ZNQ
Metrics for the Best-Performing ETFs
Middlefield Innovation Dividend ETF
- Morningstar Rating: 5 stars
- Expense Ratio: 1.42%
- Morningstar Category: Global Equity
The C$104 million Middlefield Innovation Dividend ETF was the best-performing ETF in the second quarter, with an 11.92% return. The actively managed Middlefield ETF beat the 2.00% gain on the average fund in Morningstar’s global equity category for the quarter. Over the last 12 months, the Middlefield Innovation Dividend ETF has returned 49.31%, outperforming the 18.88% gain on the average fund in its category, leaving the ETF in the 2nd percentile.
The Middlefield Innovation Dividend ETF has a Morningstar Medalist Rating of Neutral. It was launched in March 2018.
BMO Equal Weight Global Gold Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.60%
- Morningstar Category: Precious Metals Equity
The second-best-performing ETF in the second quarter was the C$60 million BMO Equal Weight Global Gold Index ETF. The passively managed BMO ETF returned 10.53%, outperforming the average precious metals equity fund, which gained 9.33%. Looking back over the last 12 months, the BMO Equal Weight Global Gold Index ETF has returned 27.19%, outperforming the 18.02% return on the average fund in its category, leaving the ETF in the 10th percentile.
The Bronze-rated BMO Equal Weight Global Gold Index ETF was launched in November 2012.
BMO Junior Gold Index ETF
- Morningstar Rating: 2 stars
- Expense Ratio: 0.61%
- Morningstar Category: Precious Metals Equity
The C$71 million BMO Junior Gold Index ETF ranked third for the quarter, returning 10.05%. The BMO ETF, which is passively managed, performed roughly in line with the 9.33% average return on funds in the precious metals equity category for the second quarter. Over the last 12 months, the BMO ETF has returned 21.92%, ahead of the 18.02% gain on the average fund in its category, leaving the ETF in the 24th percentile.
The BMO Junior Gold Index ETF, launched in January 2010, has a Morningstar Medalist Rating of Neutral.
iShares China Index ETF
- Morningstar Rating: 2 stars
- Expense Ratio: 0.87%
- Morningstar Category: Greater China Equity
With a 9.45% return, the C$96 million iShares China Index ETF ranked fourth in the quarter. The passively managed iShares ETF outperformed the 5.59% return on the average Greater China equity fund. Over the last 12 months, the fund has gained 1.21%, ahead of the 2.51% decline on funds in its category, placing it in the 26th percentile for the period.
The iShares China Index ETF has a Neutral Morningstar Medalist Rating. It was launched in January 2010.
Guardian i3 Global Quality Growth ETF Unhedged
- Morningstar Rating: 4 stars
- Expense Ratio: 0.81%
- Morningstar Category: Global Equity
The fifth-best-performing ETF was the C$33 million Guardian i3 Global Quality Growth ETF Unhedged, which gained 9.43% in the second quarter. This actively managed Guardian Capital ETF beat the 2.00% average return on funds in the global equity category. Over the past year, the Guardian i3 Global Quality Growth ETF Unhedged rose 35.74%, outperforming the 18.88% return on the average fund in its category and placing it in the 5th percentile.
The Guardian i3 Global Quality Growth ETF Unhedged, launched in August 2020, has a Morningstar Medalist Rating of Neutral.
iShares S&P/TSX Global Gold Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.61%
- Morningstar Category: Precious Metals Equity
The C$1.3 billion iShares S&P/TSX Global Gold Index ETF was the sixth-best-performing Canadian ETF in the second quarter, with a 9.40% return. The return on the passively managed iShares ETF was roughly in line with the 9.33% gain on the average fund in Morningstar’s precious metals equity category. Looking back over the last 12 months, the iShares S&P/TSX Global Gold Index ETF has returned 15.28%, underperforming the 18.02% return on the average fund in its category, leaving the ETF in the 72nd percentile.
The Silver-rated iShares S&P/TSX Global Gold Index ETF was launched in March 2001.
Global X NASDAQ-100 Index Corporate Class ETF
- Morningstar Rating: 5 stars
- Expense Ratio: 0.28%
- Morningstar Category: US Equity
The seventh-best-performing ETF in the second quarter was the C$829 million Global X NASDAQ-100 Index Corporate Class ETF. The passively managed Global X ETF returned 9.11%, outperforming the average US equity fund, which gained 3.30%. Looking back over the last 12 months, the Global X NASDAQ-100 Index Corporate Class ETF has returned 34.65%, outperforming the 24.05% return on the average fund in its category, leaving the ETF in the 11th percentile.
The Global X NASDAQ-100 Index Corporate Class ETF has a Morningstar Medalist Rating of Neutral. It was launched in April 2016.
TD Active US Enhanced Dividend ETF
- Morningstar Rating: 5 stars
- Expense Ratio: 0.73%
- Morningstar Category: US Equity
The C$385 million TD Active US Enhanced Dividend ETF ranked eighth for the quarter, returning 9.05%. The TD ETF, which is actively managed, topped the 3.30% average gain on funds in the US equity category. Over the last 12 months, the TD ETF has returned 40.23%, ahead of the 24.05% return on the average fund in its category, leaving it in the 4th percentile for performance.
The Bronze-rated TD Active US Enhanced Dividend ETF was launched in May 2020.
Middlefield US Equity Dividend ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 1.39%
- Morningstar Category: US Dividend & Income Equity
With a 9.01% gain, the C$45 million Middlefield US Equity Dividend ETF ranked ninth in the second quarter. The actively managed Middlefield ETF outperformed the 1.85% return on the average us dividend & income equity fund. Over the last 12 months, the fund has returned 37.00%, ahead of the 17.88% return on funds in its category, placing it in the 1st percentile.
The Middlefield US Equity Dividend ETF, launched in December 2013, has a Morningstar Medalist Rating of Neutral.
BMO NASDAQ 100 Equity Index ETF
- Morningstar Rating: 5 stars
- Expense Ratio: 0.39%
- Morningstar Category: US Equity
The tenth-best performing ETF was the C$1 billion BMO NASDAQ 100 Equity Index ETF, which gained 8.99% in the second quarter. The passively managed BMO ETF beat the 3.30% average return on funds in the US equity category. Over the past year, the BMO NASDAQ 100 Equity Index ETF rose 34.36%, outperforming the 24.05% return on the average fund in its category and placing it in the 12th percentile.
The BMO NASDAQ 100 Equity Index ETF has a Morningstar Medalist Rating of Neutral. It was launched in February 2019.
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.
