Do you want to invest in a US ETF to diversify your Canadian portfolio? Whether you’re looking for the best US dividend ETF you can buy in Canada, the best Nasdaq ETF or the best US ETFs based on performance, these are the funds you should watch.
Four best US ETFs:
Best US ETF by 1-year performance: Direxion Daily Junior Gold Miners Index Bear 2X Shares (JDST)
Best US ETF by 5-year performance: ProShares Ultra Semiconductors (USD)
Best US dividend ETF: GraniteShares 2x Short NVDA Daily ETF (NVD)
Best Nasdaq ETF: GraniteShares 2x Long NVDA Daily ETF (NVDL)
Best US ETF: 1-year performance
Direxion Daily Junior Gold Miners Index Bear 2X Shares (JDST)
The Direxion Daily Junior Gold Miners Index Bear 2X Shares ETF has yielded an staggering 468.75% return over the past 12 months. The fund aims for results that are double the daily inverse performance of the MVIS Global Junior Gold Miners Index. The index tracks liquid small-capitalization gold and silver mining companies. Total assets held in JDST are worth around $73 million, and the fund’s expense ratio is 0.98%.
Direxion Daily Junior Gold Miners Index Bear 2X Shares
468.75%
0.98%
73M
NVDL
GraniteShares 2x Long NVDA Daily ETF
409.16%
1.15%
4,731M
CONL
GraniteShares 2x Long COIN Daily ETF
388.78%
1.15%
483M
USD
ProShares Ultra Semiconductors
233.06%
0.95%
1,269M
GBTC
Grayscale Bitcoin Trust
192.29%
1.50%
16,508M
Best US ETF: 5-year performance
ProShares Ultra Semiconductors (USD)
The SPDR S&P 500 ETF Trust has yielded an impressive 68.91% return over the past 5 years. The fund aims for results that are double the daily performance of the Dow Jones U.S. Semiconductors Index. The index tracks over 30 US-based companies with market capitalizations ranging from $1.45 billion to $3.04 billion. The fund holds more than $1.26 billion in total assets, and it has a 0.95% expense ratio.
The GraniteShares 2x Short NVDA Daily ETF has yielded a strong 137.21% return over the past 12 months. The fund aims for results that are double the daily inverse percentage change of NVIDIA Corp. common stock (Nasdaq: NVDA), a graphics and computing business and one of the largest companies in the world by market capitalization. The fund holds around $78 million in total assets and has a 1.50% expense ratio.
These are the 5 best US dividend ETFs you can buy from Canada based on annual dividend yield. We excluded ETFs with negative or nonexistent 1-year returns, so only ETFs with positive 1-year returns are shown.
Symbol
ETF name
Yield
Expense ratio
Total assets
NVD
GraniteShares 2x Short NVDA Daily ETF
137.21%
1.50%
78M
NVQD
T-Rex 2X Inverse NVIDIA Daily Target ETF
109.52%
1.05%
38M
CONY
YieldMax COIN Option Income Strategy ETF
83.07%
1.01%
644M
TSL
GraniteShares 1.25x Long Tesla Daily ETF
79.16%
1.15%
8M
IWMY
Defiance R2000 Enhanced Options Income ETF
59.97%
0.99%
158M
Best Nasdaq ETF
GraniteShares 2x Long NVDA Daily ETF (NVDL)
The GraniteShares 2x Short NVDA Daily ETF has yielded a strong 409.16% return over the past 12 months. The fund aims for results that are double the daily percentage change of NVIDIA Corp. common stock (Nasdaq: NVDA). The graphics and computing company has a market capitalization of $3.06 trillion, and its stock has yielded 200% returns over the past 12 months. NVDL holds around $4.73 billion in assets and has an expense ratio of 1.15%.
Our selection of top picks is based on the same criteria as our annual Stock Trading Platform Awards. This is updated yearly to reflect changes in the market.
"Best for" picks are those we've evaluated to be best for specific product features or categories – you can read our full methodology here. If we show a "Promoted" pick, it's been chosen from among our commercial partners and is based on factors that include special features or offers, and the commission we receive.
This isn't an exhaustive list of all the trading platforms out there. What's best for you depends on your own investing strategy, budget and financial goals.
How to invest in a US ETF
Once you’ve considered the risks of investing in the best US ETFs and worked out your financial goals, you can buy and sell ETF units like any stock on the stock market through a fund manager or an online trading platform.
Here’s how to buy US ETFs through an online trading platform:
There are thousands of US ETFs to choose from, so you’ll need to consider a wide range of factors when deciding where to invest your money.
Your investment time frame. How long are you planning to invest your money? Some US ETFs adopt a high-risk strategy to target high short-term growth, while others are designed for long-term growth to suit investors who plan to buy and hold for a long time.
Your investment strategy. What do you want to achieve by investing in a US ETF? Will you take a conservative approach in the hope of earning steady long-term gains, or will you adopt a high-risk/high-reward strategy to target quick gains? If you prefer lower risk, you could also consider index funds.
How the fund works. Make sure you understand the nature of the product and the risks involved before you invest in an ETF. Read the fund’s prospectus. Is it passively or actively managed? What is the focus index, sector or industry?
Check the returns. How has it performed over a one-year period? How has it performed over several years? How have similar ETFs performed over the same period?
Fees. Find out the management fee and any trading fees your broker charges.
Talk to a financial adviser. If you’re unclear about an investment, how it works or its returns, contact a licensed professional for help.
US ETF fees to consider
High fees can make a big dent in your overall investment returns. Like Canadian ETFs, there are two main costs involved when investing in US funds: management and brokerage fees.
Management expense ratio (MER). Often between 0.05% and 2.5%, this is the percentage of your return that your fund manager charges as a fee. Typically, the more work a fund manager has to do to keep the ETF profitable, the higher the fee. Index ETFs simply follow stocks listed in an index, so management fees are usually low.
Brokerage fees. Like Canadian stocks and ETFs, your broker may charge a fee every time you buy shares of a US ETF. The fee usually ranges from $0 up to $10+ per trade, although some platforms charge percentage fees.
Other possible fees you might encounter include account inactivity fees, quarterly or annual account maintenance fees (sometimes waived with a minimum balance) and money transfer charges.
What are the risks of investing in US ETFs?
As with all investments, buying US ETFs comes with risks:
You could lose money. The value of US ETFs rise and fall like any listed stock.
Non-diversified ETFs are especially vulnerable to industry swings. Funds with varied investments won’t be as heavily impacted if one investment dips. But funds that focus on a single asset class may fall significantly if that industry or sector goes down.
Tracking errors might obscure ETF data. Fees, taxes and other factors can sometimes mean that an ETF doesn’t accurately track the performance of an index.
Leveraged and inverse ETFs are higher risk. Leveraged ETFs are designed to provide higher short-term returns than traditional ETFs, but the risk and fees are higher. Inverse ETFs allow you to hedge against falling markets but come with unique risks and can be confusing for novice investors.
Currency risks and international taxes. If you invest in a global ETF, changes in the value of the US dollar will have a direct impact on the value of your investment. You may also need to pay foreign taxes, so make sure you’re aware of all tax implications of an ETF before committing any funds.
Synthetic ETFs. By investing in derivatives and swaps instead of stocks, synthetic ETFs are riskier than traditional ETFs. The price of futures could differ from the price of an underlying asset.
Where can I view US ETF fund facts?
Basic details about a fund can be found in its prospectus, which (in most cases) must be filed with the US Securities and Exchange Commission (SEC) before an ETF can be publicly traded.
The prospectus breaks down key information about a fund including:
Fees and costs
Investment objectives
Risk level
Performance
View all public filings related to ETFs and other regulated US securities on the SEC website. You can also access an ETF’s prospectus by visiting the issuing company’s website.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
Stacie Hurst is an editor at Finder, specializing in loans, banking, investing and money transfers. She has a Bachelor of Arts in Psychology and Writing, and she has completed FP Canada Institute's Financial Management Course. Before working in the publishing industry, Stacie completed one year of law school in the United States. When not working, she can usually be found watching K-dramas or playing games with her friends and family. See full bio
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