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 first quarter of 2025, the top-performing ETFs included precious metals equity funds iShares S&P/TSX Global Gold Index ETF XGD and Global X Gold Producer Equity Covered Call ETF GLCC. 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.
Within our list, five funds fell into the precious metals equity category, where the average name rose 33.66% in the first quarter.
The 10 Best-Performing ETFs for Q1 2025
- iShares S&P/TSX Global Gold Index ETF XGD
- Global X Gold Producer Equity Covered Call ETF GLCC
- BMO Equal Weight Global Gold Index ETF ZGD
- Harvest Global Gold Giants Index ETF HGGG
- BMO Junior Gold Index ETF ZJG
- BMO MSCI China Selection Equity Index ETF ZCH
- iShares S&P/TSX Capped Materials Index ETF XMA
- Evolve European Banks Enhanced Yield EBNK
- iShares China Index ETF XCH
- RBC Quant European Dividend Leaders ETF RPD.U
Best-Performing Canadian ETFs
Source: Morningstar Direct. Data as of March 31, 2025.
Metrics for the Best-Performing ETFs
iShares S&P/TSX Global Gold Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.61%
- Morningstar Category: Precious Metals Equity
The C$2 billion iShares S&P/TSX Global Gold Index ETF was the best-performing ETF in the first quarter, with a 36.26% return. The passively managed iShares ETF beat the 33.66% gain on the average fund in Morningstar’s precious metals equity category for the quarter. Over the last 12 months, the iShares S&P/TSX Global Gold Index ETF has returned 59.23%, underperforming the 61.17% gain on the average fund in its category, leaving the ETF in the 75th percentile.
The iShares S&P/TSX Global Gold Index ETF has a Morningstar Medalist Rating of Neutral. It launched in March 2001.
Global X Gold Producer Equity Covered Call ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.78%
- Morningstar Category: Precious Metals Equity
The second-best-performing ETF in the quarter was the C$301 million Global X Gold Producer Equity Covered Call ETF. The passively managed Global X ETF returned 35.28%, outperforming the average precious metals equity fund, which gained 33.66%. Looking back over the last year, the Global X Gold Producer Equity Covered Call ETF has returned 59.18%, underperforming the 61.17% return on the average fund in its category, leaving the ETF in the 80th percentile.
The Global X Gold Producer Equity Covered Call 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 deliver positive returns after fees.
BMO Equal Weight Global Gold Index ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 0.60%
- Morningstar Category: Precious Metals Equity
The C$127 million BMO Equal Weight Global Gold Index ETF ranked third for the quarter, returning 34.31%. The BMO ETF, which is passively managed, performed roughly in line with the 33.66% average return on funds in the precious metals equity category for the first quarter. Over the last 12 months, the BMO ETF has returned 69.56%, ahead of the 61.17% gain on the average fund in its category, leaving the ETF in the 13th percentile.
The BMO Equal Weight Global Gold Index ETF, launched in November 2012, has a Morningstar Medalist Rating of Neutral.
Harvest Global Gold Giants Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.68%
- Morningstar Category: Precious Metals Equity
With a 31.10% return, the C$16 million Harvest Global Gold Giants Index ETF ranked fourth in the quarter. The passively managed Harvest Portfolios ETF underperformed the 33.66% return on the average precious metals equity fund. Over the last year, the fund has gained 66.10%, ahead of the 61.17% return on funds in its category, placing it in the 26th percentile for the period.
The Harvest Global Gold Giants Index ETF has a Neutral Morningstar Medalist Rating. It launched in January 2019.
BMO Junior Gold Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.61%
- Morningstar Category: Precious Metals Equity
The fifth-best-performing ETF was the C$92 million BMO Junior Gold Index ETF, which gained 29.34% in the first quarter. This passively managed BMO ETF trailed the 33.66% average return on funds in the precious metals equity category. Over the past 12 months, the BMO Junior Gold Index ETF rose 66.43%, outperforming the 61.17% return on the average fund in its category and placing it in the 19th percentile.
The BMO Junior Gold Index ETF, launched in January 2010, has a Morningstar Medalist Rating of Neutral.
BMO MSCI China Selection Equity Index ETF
- Morningstar Rating: 1 star
- Expense Ratio: 0.67%
- Morningstar Category: Greater China Equity
The C$99 million BMO MSCI China Selection Equity Index ETF was the sixth-best-performing Canadian ETF in the first quarter, with a 21.39% return. The return on the passively managed BMO ETF topped the 9.38% gain on the average fund in Morningstar’s Greater China equity category. Looking back over the last year, the BMO MSCI China Selection Equity Index ETF has returned 56.45%, outperforming the 32.30% return on the average fund in its category, leaving the ETF in the 8th percentile.
The BMO MSCI China Selection Equity Index ETF takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Bronze.
iShares S&P/TSX Capped Materials Index ETF
- Morningstar Rating: 3 stars
- Expense Ratio: 0.61%
- Morningstar Category: Natural Resources Equity
The seventh-best-performing ETF in the first quarter was the C$201 million iShares S&P/TSX Capped Materials Index ETF. The passively managed iShares ETF returned 20.10%, outperforming the average natural resources equity fund, which gained 7.10%. Looking back over the last 12 months, the iShares S&P/TSX Capped Materials Index ETF has returned 37.14%, outperforming the 9.76% return on the average fund in its category, leaving the ETF in the 9th percentile.
The iShares S&P/TSX Capped Materials Index ETF has a Morningstar Medalist Rating of Neutral. It launched in December 2005.
Evolve European Banks Enhanced Yield
- Morningstar Rating: 5 stars
- Expense Ratio: 0.69%
- Morningstar Category: Financial Services Equity
The C$21 million Evolve European Banks Enhanced Yield ranked eighth for the quarter, returning 20.05%. The Evolve Funds ETF, which is passively managed, topped the 0.52% average loss on funds in the financial services equity category. Over the last year, the Evolve Funds ETF has returned 36.37%, ahead of the 17.45% return on the average fund in its category, leaving it in the 2nd percentile for performance.
The Negative-rated Evolve European Banks Enhanced Yield launched in January 2022.
iShares China Index ETF
- Morningstar Rating: 2 stars
- Expense Ratio: 0.86%
- Morningstar Category: Greater China Equity
With a 17.78% gain, the C$164 million iShares China Index ETF ranked ninth in the first quarter. The passively managed iShares ETF outperformed the 9.38% return on the average Greater China equity fund. Over the last 12 months, the fund has returned 60.58%, ahead of the 32.30% return on funds in its category, placing it in the 1st percentile.
The iShares China Index ETF, launched in January 2010, has a Morningstar Medalist Rating of Neutral.
RBC Quant European Dividend Leaders ETF
- Morningstar Rating: 4 stars
- Expense Ratio: 0.55%
- Morningstar Category: European Equity
The tenth-best-performing ETF was the C$31 million RBC Quant European Dividend Leaders ETF, which gained 13.16% in the first quarter. The actively managed RBC ETF beat the 7.57% average return on funds in the European equity category. Over the past year, the RBC Quant European Dividend Leaders ETF rose 15.72%, outperforming the 8.82% return on the average fund in its category and placing it in the 6th percentile.
The RBC Quant European Dividend Leaders ETF has a Morningstar Medalist Rating of Silver. It launched in October 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 generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
