Key Takeaways
- When ETFs provide similar exposure, cost can be a key differentiator. Fees reduce returns, which is why comparing management fees and management expense ratios (MERs) matters, especially as total costs become more visible. Lower-fee funds tend to attract more investor flows and can improve long-term outcomes.
- Fee transparency is increasing with Total Cost Reporting under Client Relationship Model Phase 3 (CRM3). Beginning in 2026, firms have been compiling embedded fund costs so investor statements can show total ownership costs, including MERs, Trading Expense Ratios (TERs), and other fund expenses, alongside other data.
- Global X screened hundreds of Canadian-listed passive ETFs by their Canadian Investment Funds Standards Committee (CIFSC) category, excluding duplicate share classes and U.S.-dollar versions, ranked peers by permanent management fee, and checked holdings overlap for comparability. Investors should also consider hidden frictions: currency conversion, hedging trade-offs, and foreign withholding taxes.
Fees are one of the most important variables investors can control. Performance is never guaranteed. But fees are.
ETF fees cover the day-to-day cost of running the fund which includes portfolio management, operating expenses and taxes, and they show up in the MER as a percentage of your investment.
If everything else is equal, the MER can be a key factor. Operating expenses are deducted directly from an ETF’s assets, which reduces overall investor returns. A lower MER means a lower cost of ownership. Over time those costs compound, creating a meaningful impact on long-term total returns.
That’s why fee comparison matters. Low cost is a major attraction when considering a particular ETF, and the evidence is clear that lower-fee funds tilt the odds toward better long-term outcomes.
Overall, fees have also been falling as investors migrate toward more cost-efficient passive strategies. A 10-year Morningstar study of Canadian fund fees found that investors increasingly preferred lower-cost options. With passive, index-tracking funds often offering comparable market exposure, cost became a key differentiator. As a result, lower-cost passive funds captured most industry assets and net flows, with the cheapest half accounting for the large majority of both assets and flows over the period.
What’s Driving the Fund Fee Conversation?
Fees are getting more attention across the industry as the third phase of the Client Relationship Model (CRM3) begins: Total Cost Reporting (TCR).
From January 1, 2026, investment firms have been compiling embedded fund costs so investor statements can show the total costs of owning an investment such as an ETF, including MERs, TERs, and fund expense ratios (FERs). The first annual reports that include the full cost disclosure mandated by CRM3 will be delivered to investors in early 2027, reflecting the current calendar year.
The goal is straightforward: greater transparency. Investors won’t just be able to see what their ETF holds; they’ll be able to see what it truly costs to own.
How Fees Impact Performance: An Example
Canadian Equities
CNDX
Besides not wanting to pay more for the same product, why do fees matter? Because they can impact the total return of your investment.
In the example below, we take a look at the Global X S&P/TSX 60 Index ETF (CNDX), relative to similar ETFs that track the S&P/TSX 60 Index.

Annualized Standard Performance (%)
| ETF Name & Ticker | YTD | 1 Yr | 3 Yr | 5 Yr | 10 Yr |
| Global X S&P/TSX 60 Index ETF (CNDX) | 6.37% | 32.17% | 0.00 | 0.00 | 0.00 |
| iShares S&P/TSX 60 Index ETF (XIU) | 6.36% | 32.16% | 20.98% | 16.28% | 13.39% |
| BMO S&P/TSX 60 Index ETF (ZIU) | 6.36% | 32.09% | 0.00 | 0.00 | 0.00 |
Source: Websites of Global X ETFs Canada, BlackRock and BMO Global Asset Management as at February 27, 2026.
The indicated rates of return are the historical annual compounded total returns, including changes in per unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the Fund(s) or future returns on investment in the Fund(s). Only the returns for periods of one year or greater are annualized returns.
We looked at passive ETFs that closely tracked the TSX 60™ Index. CNDX was the lowest-fee* ETF that tracked this index of Canada’s largest companies on a 100% basis. Effective January 1, 2026, CNDX’s management fee was permanently reduced to 0.09%. Prior to this, the annual management fee for CNDX was rebated in April 2025 to zero basis points until the end of that year.
*Relative to the typical MER of comparable, regular mutual funds.
| ETF Name & Ticker | Management Fee | Index | Common Holdings to Index |
| Global X S&P/TSX 60 Index ETF (CNDX) | 0.09%* | TSX 60™ Index | 100% |
| iShares S&P/TSX 60 Index ETF (XIU) | 0.15% | TSX 60™ Index | 100% |
| BMO S&P/TSX 60 Index ETF (ZIU) | 0.15% | TSX 60™ Index | 100% |
* Plus applicable sales tax.
Source: Morningstar as at February 19, 2026
CNDX has the lowest management fee of the Canadian equity category at 0.09%, as at February 19, 2026. The other two have higher management fees. As you can see, that results in a slight return differential in favour of CNDX in the 2025 calendar year.
Now, a few basis points may translate into only a small dollar impact depending on the amount of dollars invested. But if you increase the amount of money invested and allow for greater compounding over time, that difference magnifies.
In other instances, the management fee gap can be more significant. In some of the examples below, the cost difference of a competitor fund within the same category could be double or more than that of the selected Global X fund, underscoring how fee disparities can materially affect long-term outcomes.
Low-Cost ETFs from Global X
Global X looked at over 300 Canadian-listed ETFs, applying a screening framework for Canadian-domiciled, index ETFs across categories and themes, excluding hedged and unhedged version of each fund and built a peer set and ranked ETFs from lowest to highest management fee, alongside a holdings-overlap check to confirm index comparability.
U.S. Equities
QQQX
Comprising 100 of the largest non‑financial NASDAQ-listed companies, the NASDAQ‑100® Index provides exposure to leading growth and technology companies such as NVIDIA, Apple, Alphabet, and Microsoft. The index also includes innovative U.S. and international companies active across the healthcare, consumer goods, and industrial sectors in the global economy.
Of the six Canada-listed ETFs that fully track the index, the Global X NASDAQ-100 Index ETF (QQQX) is the lowest-cost* at 0.15% as at February 19, 2026.
*Relative to the typical MER of comparable, regular mutual funds.
| ETF Name & Ticker | Management Fee | Index | Common Holdings to Index |
| Global X NASDAQ-100 Index ETF (QQQX) | 0.15%* | Nasdaq-100® | 100% |
| Invesco NASDAQ 100 ETF (QQC) | 0.20% | Nasdaq-100® | 100% |
| BMO Nasdaq 100 Equity Index ETF (ZNQ) | 0.35% | Nasdaq-100® | 100% |
| BMO NASDAQ 100 Equity Hedged to CAD Index ETF (ZQQ) | 0.35% | Nasdaq-100® (CAD-hedged) | 100% |
| iShares NASDAQ 100 Index ETF (CAD-Hedged)(XQQ) | 0.35% | NASDAQ-100® Currency Hedged CAD Index | 100% |
| iShares NASDAQ 100 Index ETF – USD Units (XQQU.U) | 0.35% | Nasdaq-100® | 100% |
* Plus applicable sales tax.
Source: Morningstar as at February 19, 2026
RSSX
The Russell 2000® Index tracks approximately 2,000 U.S. small‑cap stocks, offering portfolio diversification beyond large‑cap holdings. Its broad composition reduces reliance on any single stock or sector, while small‑cap companies’ growth potential and resilience during economic downturns could help hedge market volatility.
Two ETFs available to Canadians closely track this American small-cap Index. The Global X Russell 2000 Index ETF (RSSX) offers a lower management fee* at 0.25% as at February 19, 2026.
*Relative to the typical MER of comparable, regular mutual funds.
| ETF Name & Ticker | Management Fee | Index | Common Holdings to Index |
| Global X Russell 2000 Index ETF (RSSX) | 0.25%* | Russell 2000® | 100% |
| iShares U.S. Small Cap Index ETF (CAD-Hedged) (XSU) | 0.35% | Russell 2000® | 99% |
* Plus applicable sales tax.
Source: Morningstar as at February 19, 2026
Canadian Banks
HBNK
As one of Canada’s largest economic sectors, Canada’s Big Six Banks have traditionally offered a stable bastion within the broader Canadian equity landscape. They have a long history of stability, steady earnings, and consistent dividends.
Three ETFs in Canada directly track the Solactive Equal Weight Canada banks Index. Of them, Global X Equal Weight Canadian Banks Index ETF (HBNK) was the lowest-cost* Canadian bank ETF at 0.09% as at February 19, 2026.
*Relative to the typical MER of comparable, regular mutual funds.
| ETF Name & Ticker | Management Fee | Index | Common Holdings to Index |
| Global X Equal Weight Canadian Banks Index ETF (HBNK) | 0.09%* | Solactive Equal Weight Canada Banks Index | 100% |
| Hamilton Canadian Bank Equal-Weight Index ETF (HEB) | 0.19% | Solactive Equal Weight Canada Banks Index | 100% |
| BMO Equal Weight Banks Index ETF (ZEB) | 0.25% | Solactive Equal Weight Canada Banks Index | 100% |
* Plus applicable sales tax.
Source: Morningstar as at February 19, 2026
Energy & Utilities
NRGY
The oil and gas industry has played a vital role in the global economy since the mid-19th century and remains a cornerstone of Canada’s resource sector. Canada is the world’s fourth-largest oil producer and the fifth-largest producer of natural gas. The industry includes major players such as Cenovus Energy, Suncor Energy, and Enbridge, which contribute significantly to production, refining, and energy infrastructure.
At 0.40%, the Global X Equal Weight Canadian Oil & Gas Index ETF (NRGY) offers the lowest cost* as at February 19, 2026 among the two Canadian Oil & Gas ETFs that track an equal-weight index, positioning it as a cost-competitive option within its category.
*Relative to the typical MER of comparable, regular mutual funds.
| ETF Name & Ticker | Management Fee | Index | Common Holdings to Index |
| Global X Equal Weight Canadian Oil & Gas Index ETF (NRGY) | 0.40%* | Mirae Asset Equal Weight Canadian Oil & Gas Index | 100% |
| iShares S&P/TSX Capped Energy Index ETF (XEG) | 0.55% | S&P/TSX Capped Energy Index | 51% |
| BMO Equal Weight Oil & Gas Index ETF (ZEO) | 0.55% | Solactive Equal Weight Canada Oil & Gas Index | 100% |
* Plus applicable sales tax.
Source: Morningstar as at February 19, 2026
UTIL
Utilities companies, which supply homes and businesses with energy and water, are traditionally known for their defensive properties, such as stable cash flows and high dividend payout ratios, even during volatile market conditions.
Of the three Canadian utility sector ETFs available, at 0.25% the Global X Equal Weight Canadian Utilities Index ETF (UTIL) offered the lowest cost* in this category as at February 19, 2026.
*Relative to the typical MER of comparable, regular mutual funds.
| ETF Name & Ticker | Management Fee | Index | Common Holdings to Index |
| Global X Equal Weight Canadian Utilities Index ETF (UTIL) | 0.25%* | Mirae Asset Equal Weight Canadian Utilities Index | 100% |
| iShares S&P/TSX Capped Utilities Index ETF (XUT) | 0.55% | S&P/TSX Capped Utilities Index | 72% |
| BMO Equal Weight Utilities Index ETF (ZUT) | 0.55% | Solactive Equal Weight Canada Utilities Index | 54% |
* Plus applicable sales tax.
Source: Morningstar as at February 19, 2026
High Interest Savings
CASH
Among the three pure high-interest savings ETFs available to Canadian investors, the Global X High Interest Savings ETF (CASH) stands out on both cost and scale. With a management fee of just 0.10%, it is the lowest-cost* option in its category as at February 19, 2026. In addition, at approximately $6.9 billion in assets under management, it is also the largest high-interest savings ETF in Canada (Source: Global X, as at February 20, 2026).
*Relative to the typical MER of comparable, regular mutual funds.
| ETF Name & Ticker | Management Fee |
| Global X High Interest Savings ETF (CASH) | 0.10%* |
| CI High Interest Savings ETF (CSAV) | 0.14% |
| Evolve High Interest Savings Account Fund (HISA) | 0.14% |
| Purpose High Interest Savings Fund (PSA) | 0.15% |
* Plus applicable sales tax.
Source: Morningstar as at February 19, 2026
Note: CASH uses cash accounts and does not track a traditional benchmark, but rather receives interest paid on cash deposits that can change over time. CASH primarily invests in Canadian bank deposit accounts.
Canadian Real Estate
REIT
Since their introduction in Canada in 1993, real estate investment trusts (REITs) have offered Canadian investors a convenient way to gain exposure to income-generating real estate. REITs pool investor capital to acquire and manage diversified portfolios of real estate holdings, typically across asset classes such as residential, retail, industrial, and office sectors.
Of the four ETFs providing access to this sector, the Global X Equal Weight Canadian REITs Index ETF (REIT) offers the lowest-cost*, equal-weighted option at a management fee of 0.25% as at February 19, 2026. Competing ETFs in the category track different index benchmarks and methodologies, which can result in differences in sector composition, concentration, and overall exposure.
*Relative to the typical MER of comparable, regular mutual funds.
| ETF Name & Ticker | Management Fee | Index | Common Holdings to Index |
| Global X Equal Weight Canadian REITs Index ETF (REIT) | 0.25%* | Mirae Asset Equal Weight Canadian REITs Index | 100% |
| iShares S&P/TSX Capped REIT Index ETF (XRE) | 0.55% | S&P/TSX Capped REIT Index | 72% |
| Vanguard FTSE Canadian Capped REIT Index ETF (VRE) | 0.35% | FTSE Canada All Cap Real Estate Capped 25% Index | 36% |
| BMO Equal Weight REITs Index ETF (ZRE) | 0.55% | Solactive Equal Weight Canada REIT Index | 47% |
* Plus applicable sales tax.
Source: Morningstar as at February 19, 2026
Overseas Fees
Investing outside Canada can enhance diversification, but it may also add extra costs and complexity. In some cases, ETFs listed in the U.S. may offer a lower fee on a particular exposure, but there are hidden costs that are worth considering. For instance, investors may incur currency exchange costs, when exchanging Canadian dollars into U.S. dollars. Currency exposure can also distort returns. Investing outside Canada can also mean withholding taxes on foreign income such as dividends and interest.
Lower fees can improve the odds of better long-term outcomes and steady declines in MERs show investors are paying attention. With Total Cost Reporting, it should be easier and more transparent to compare what you pay to own an ETF. But cost isn’t just the sticker price: currency conversion, hedging trade-offs, and foreign withholding taxes can all meaningfully impact overall returns, especially when investing through U.S.-listed products.
Relevant ETFS:
Global X S&P/TSX 60 Index ETF (CNDX)
Global X NASDAQ-100 Index ETF (QQQX)
Global X Russell 2000 Index ETF (RSSX)
Global X Equal Weight Canadian Oil & Gas Index ETF (NRGY)
Global X Equal Weight Canadian Utilities Index ETF (UTIL)
Global X High Interest Savings ETF (CASH)
Global X Equal Weight Canadian REITs Index ETF (REIT)
Note: Our Methodology
For each ticker, we applied the same screening framework across all ETFs reviewed. For every Global X ticker, we first identified its CIFSC category, then screened for Canadian-domiciled, passively managed ETFs within that same category.
To keep comparisons clean and avoid duplication, we excluded:
- Multiple share classes of the same ETF (for example, keeping both hedged and unhedged versions of an identical mandate)
- U.S.-dollar listed versions of the same strategy.
Once the peer set was established, we sorted ETFs from lowest to highest management fee.
To assess how closely each ETF tracks a broad-based benchmark, we also ran a holdings overlap analysis between the primary reference index the ETF follows and each ETF in the peer set. This helped gauge the degree of index replication and overall comparability across products.
We also ensured that funds mentioned were amongst the same family of products (e.g. removing money market ETFs from high interest savings ETFs).