In 2026, good Canadian traders perceive three issues.
First, diversification issues. This isn’t about hitting dwelling runs. It’s about avoiding everlasting capital loss.
Second, low charges matter. Simply as dividends compound positively, excessive expense ratios compound negatively yr after yr.
Third, accessibility issues. Shopping for one exchange-traded fund (ETF) is much easier than managing dozens of particular person shares.
With that framework in thoughts, listed below are three ETF picks from Vanguard that present publicity to Canadian blue-chip shares, every with a special stability of diversification and yield.
Broad Canadian shares
The primary ETF to take a look at is Vanguard FTSE Canada All Cap Index ETF (TSX:VCN). This fund represents what is mostly thought of the investable Canadian fairness market.
It holds 207 shares throughout massive, mid-, and small capitalizations and is weighted by market cap. Due to that construction, the biggest positions are acquainted names comparable to Canadian banks, pipelines, railways, and vitality corporations.
Prices are extraordinarily low. The expense ratio is 0.06%, which suggests $10,000 invested leads to about $6 per yr in payment drag. The trailing 12-month yield is 2.27%, and most of that’s paid as eligible dividends, that are comparatively tax environment friendly in non-registered accounts.
Canadian blue chips
Some traders are much less snug with the added volatility that may come from mid- and small-cap publicity. If that applies to you, Vanguard FTSE Canada Index ETF (TSX:VCE) is an inexpensive various.
VCE is much like VCN however extra targeted. It holds 80 large-cap Canadian shares and excludes most mid- and small-cap names. It’s nonetheless market-cap weighted, so the biggest holdings overlap closely with VCN, however the portfolio is extra concentrated, notably in financials and vitality.
Charges are an identical at 0.06%, whereas the trailing 12-month yield is barely greater at 2.42%, reflecting the upper revenue profile of large-cap Canadian corporations.
Canadian dividends
If revenue is the precedence somewhat than share worth development, Vanguard FTSE Canadian Excessive Dividend Yield Index ETF (TSX:VDY) is the choice to think about.
This ETF holds Canadian dividend-paying shares that rank within the prime 55% of the market by yield. The result’s a trailing 12-month yield of three.55%, effectively above each VCN and VCE.
The trade-off is diversification. The portfolio holds simply 56 shares and is closely concentrated within the banking sector, with two banks alone making up roughly 1 / 4 of the fund.
Charges are additionally greater at 0.22%. Whereas nonetheless low in contrast with many energetic funds, the upper expense ratio and focus danger are vital to know.
