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 2024, the top-performing ETFs included global equity fund Middlefield Innovation Dividend ETF MINN and US equity fund Fidelity US Momentum ETF FCMO. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
To find the year’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 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 financial services equity category, where the average name rose 41.81% in 2024.
The 10 Best-Performing ETFs for 2024
- Middlefield Innovation Dividend ETF MINN
- Fidelity US Momentum ETF FCMO
- Middlefield US Equity Dividend ETF MUSA
- TD Active US Enhanced Dividend ETF TUED
- BMO Equal Weight US Banks Index ETF ZBK
- iShares MSCI USA Momentum Factor Index ETF XMTM
- Middlefield Sustainable Global Dividend ETF MDIV
- RBC US Banks Yield Index ETF RUBY
- BMO Covered Call US Banks ETF ZWK
- RBC Quant US Dividend Leaders ETF RUD
Metrics for the Best-Performing ETFs
Middlefield Innovation Dividend ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 1.40%
- Morningstar Category: Global Equity
The C$106 million Middlefield Innovation Dividend ETF was the best-performing ETF in 2024, with a 54.48% return. The actively managed ETF beat the 26.39% gain on the average fund in Morningstar’s global equity category for the year. Over the last three years, the ETF has returned 13.57%, outperforming the 7.69% gain on the average fund in its category, leaving it in the 3rd percentile.
The Middlefield Innovation Dividend ETF has a Morningstar Medalist Rating of Neutral. It launched in March 2018.
Fidelity US Momentum ETF
- Morningstar Rating: 5 stars
- Expense Ratio: 0.37%
- Morningstar Category: US Equity
The second-best performing ETF in 2024 was the C$459 million Fidelity US Momentum ETF. The passively managed ETF returned 53.18%, outperforming the average US equity fund, which gained 33.04%. Looking back over the last three years, the ETF has returned 15.13%, outperforming the 11.06% return on the average fund in its category, leaving it in the 3rd percentile.
The Silver-rated Fidelity US Momentum ETF launched in June 2020.
Middlefield US Equity Dividend ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 1.49%
- Morningstar Category: US Dividend & Income Equity
The C$50 million Middlefield US Equity Dividend ETF ranked third for the year, returning 47.81%. The ETF, which is actively managed, topped the 29.15% average return on funds in the us dividend & income equity category for 2024. Over the last three years, the ETF has returned 12.28%, roughly in line with the 11.44% gain on the average fund in its category, leaving it in the 5th percentile.
The Middlefield US Equity Dividend ETF, launched in December 2013, has a Morningstar Medalist Rating of Neutral.
TD Active US Enhanced Dividend ETF
- Morningstar Rating: 5 stars
- Expense Ratio: 0.73%
- Morningstar Category: US Equity
With a 46.86% return, the C$573 million TD Active US Enhanced Dividend ETF ranked fourth in 2024. The actively managed ETF outperformed the 33.04% return on the average US equity fund. Over the last three years, the fund has gained 16.36%, ahead of the 11.06% return on funds in its category, placing it in the 2nd percentile for the period.
The TD Active US Enhanced Dividend ETF has a Neutral Morningstar Medalist Rating. It launched in May 2020.
BMO Equal Weight US Banks Index ETF
- Morningstar Rating: 2 stars
- Expense Ratio: 0.38%
- Morningstar Category: Financial Services Equity
The fifth-best-performing ETF was the C$792 million BMO Equal Weight US Banks Index ETF, which gained 45.94% in 2024. This passively managed ETF beat the 41.81% average return on funds in the financial services equity category. Over the past three years, the ETF rose 4.27%, underperforming the 9.17% return on the average fund in its category and placing it in the 76th percentile.
The BMO Equal Weight US Banks Index ETF, launched in February 2014, has a Morningstar Medalist Rating of Neutral.
iShares MSCI USA Momentum Factor Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.33%
- Morningstar Category: US Equity
The C$13 million iShares MSCI USA Momentum Factor Index ETF was the sixth-best performing Canadian ETF in 2024, with a 44.53% return. The return on the passively managed ETF topped the 33.04% gain on the average fund in Morningstar’s US equity category. Looking back over the last three years, the ETF has returned 10.11%, roughly in line with the 11.06% return on the average fund in its category, leaving it in the 44th percentile.
The Bronze-rated iShares MSCI USA Momentum Factor Index ETF launched in September 2019.
Middlefield Sustainable Global Dividend ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 1.51%
- Morningstar Category: Canada FUND Global Dividend & Income Equity
The seventh-best-performing ETF in 2024 was the C$70 million Middlefield Sustainable Global Dividend ETF. The actively managed ETF returned 43.66%, outperforming the average Canada fund global dividend & income equity fund, which gained 0.00%. Looking back over the last three years, the ETF has returned 13.14%, outperforming the 0.00% return on the average fund in its category, leaving it in the 2nd percentile.
The Middlefield Sustainable Global Dividend ETF takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Neutral.
RBC US Banks Yield Index ETF
- Morningstar Rating: 2 stars
- Expense Ratio: 0.32%
- Morningstar Category: Financial Services Equity
The C$19 million RBC US Banks Yield Index ETF ranked eighth for the year, returning 42.55%. The ETF, which is passively managed, performed roughly in line with the 41.81% average gain on funds in the financial services equity category. Over the last three years, the ETF has returned 4.66%, behind the 9.17% return on the average fund in its category, leaving it in the 71st percentile for performance.
The Bronze-rated RBC US Banks Yield Index ETF launched in May 2018.
BMO Covered Call US Banks ETF
- Morningstar Rating: 1 star
- Expense Ratio: 0.71%
- Morningstar Category: Financial Services Equity
With a 41.03% gain, the C$360 million BMO Covered Call US Banks ETF ranked ninth in 2024. The actively managed ETF performed roughly in line with the 41.81% return on the average financial services equity fund. Over the last three years, the fund has dropped 0.47%, behind the 9.17% return on funds in its category, placing it in the 90th percentile.
The BMO Covered Call US Banks ETF, launched in February 2019, has a Morningstar Medalist Rating of Neutral.
RBC Quant US Dividend Leaders ETF
- Morningstar Rating: 5 stars
- Expense Ratio: 0.43%
- Morningstar Category: US Dividend & Income Equity
The tenth-best-performing ETF was the C$755 million RBC Quant US Dividend Leaders ETF, which gained 40.57% in 2024. The actively managed ETF beat the 29.15% average return on funds in the us dividend & income equity category. Over the past three years, the ETF rose 16.36%, outperforming the 11.44% return on the average fund in its category and placing it in the 1st percentile.
The RBC Quant US Dividend Leaders ETF has a Morningstar Medalist Rating of Silver. It was launched in January 2014.
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 Nathalie Cordier.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
