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 May 2025, the top-performing ETFs included natural resources equity fund BMO Equal Weight Global Base Metals Hedged to CAD Index ETF ZMT and global equity fund Franklin Innovation Fund FINO. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
To find the month’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 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.
The 10 Best-Performing ETFs for May 2025
- BMO Equal Weight Global Base Metals Hedged to CAD Index ETF ZMT
- Franklin Innovation Fund FIN
- Harvest Travel & Leisure Index ETF TRVL
- iShares MSCI USA Momentum Factor Index ETF XMTM
- Invesco NASDAQ 100 Index ETF QQC.F
- iShares NASDAQ 100 Index ETF (CAD-Hedged) XQQ
- Guardian i3 US Quality Growth Fund GIQU
- BMO NASDAQ 100 Equity Index ETF ZNQ
- Global X Nasdaq-100 Index Corporate Class ETF HXQ.U
- Invesco ESG NASDAQ 100 Index ETF QQCE
Metrics for the Best-Performing ETFs
BMO Equal Weight Global Base Metals Hedged to CAD Index ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.61%
- Morningstar Category: Natural Resources Equity
The C$25 million BMO Equal Weight Global Base Metals Hedged to CAD Index ETF was the best-performing ETF in May, with an 11.8% return. The passively managed BMO ETF beat the 5.33% gain on the average fund in Morningstar’s natural resources equity category for the month. Over the last 12 months, the BMO Equal Weight Global Base Metals Hedged to CAD Index ETF has lost 3.13%, underperforming the 2.48% gain on the average fund in its category, leaving the ETF in the 52nd percentile.
The BMO Equal Weight Global Base Metals Hedged to CAD Index 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 unlikely to deliver positive returns after fees.
Franklin Innovation Fund
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.90%
- Morningstar Category: Global Equity
The second-best-performing ETF in May was the C$29 million Franklin Innovation Fund. The actively managed Franklin Templeton ETF returned 10.72%, outperforming the average global equity fund, which gained 5.12%. Looking back over the last year, the Franklin Innovation Fund has returned 17.54%, outperforming the 11.27% return on the average fund in its category, leaving it in the 9th percentile.
The Neutral-rated Franklin Innovation Fund launched in February 2021.
Harvest Travel & Leisure Index ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.62%
- Morningstar Category: North American Equity
The C$50 million Harvest Travel & Leisure Index ETF ranked third for the month, returning 10.31%. The Harvest Portfolios ETF, which is passively managed, topped the 4.41% average return on funds in the North American equity category for May. Over the last 12 months, the Harvest Portfolios ETF has returned 18.63%, ahead of the 10.20% gain on the average fund in its category, leaving the ETF in the 7th percentile.
The Harvest Travel & Leisure Index ETF, launched in January 2021, has a Morningstar Medalist Rating of Bronze.
iShares MSCI USA Momentum Factor Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.33%
- Morningstar Category: US Equity
With a 9.93% return, the C$32 million iShares MSCI USA Momentum Factor Index ETF ranked fourth in May. The passively managed iShares ETF outperformed the 5.24% return on the average US equity fund. Over the last year, the fund has gained 26.01%, ahead of the 10.58% return on funds in its category, placing it in the 1st percentile for the period.
The iShares MSCI USA Momentum Factor Index ETF has a Neutral Medalist Rating. It launched in September 2019.
Invesco NASDAQ 100 Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.21%
- Morningstar Category: US Equity
The fifth-best-performing ETF was the C$1.9 billion Invesco NASDAQ 100 Index ETF, which gained 8.89% in May. This passively managed Invesco ETF beat the 5.24% average return on funds in the US equity category. Over the past 12 months, the Invesco NASDAQ 100 Index ETF rose 13.93%, outperforming the 10.58% return on the average fund in its category and placing it in the 24th percentile.
The Invesco NASDAQ 100 Index ETF, launched in June 2011, has a Medalist Rating of Neutral.
iShares NASDAQ 100 Index ETF (CAD-Hedged)
- Morningstar Rating: ★★★★
- Expense Ratio: 0.39%
- Morningstar Category: US Equity
The C$3.5 billion iShares NASDAQ 100 Index ETF (CAD-Hedged) was the sixth-best performing Canadian ETF in May, with an 8.88% return. The return on the passively managed iShares ETF topped the 5.24% gain on the average fund in Morningstar’s US equity category. Looking back over the last year, the iShares NASDAQ 100 Index ETF (CAD-Hedged) has returned 13.85%, outperforming the 10.58% return on the average fund in its category, leaving the ETF in the 26th percentile.
The Bronze-rated iShares NASDAQ 100 Index ETF (CAD-Hedged) launched in May 2011.
Guardian i3 US Quality Growth Fund
- Morningstar Rating: ★★★
- Expense Ratio: 0.71%
- Morningstar Category: US Equity
The seventh-best-performing ETF in May was the C$19 million Guardian i3 US Quality Growth Fund. The actively managed Guardian Capital ETF returned 8.68%, outperforming the average US equity fund, which gained 5.24%. Looking back over the last 12 months, the Guardian i3 US Quality Growth Fund has returned 16.23%, outperforming the 10.58% return on the average fund in its category, leaving the ETF in the 10th percentile.
The Guardian i3 US Quality Growth Fund has a Medalist Rating of Neutral. It was launched in August 2020.
BMO NASDAQ 100 Equity Index ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.39%
- Morningstar Category: US Equity
The C$1.1 billion BMO NASDAQ 100 Equity Index ETF ranked eighth for the month, returning 8.60%. The BMO ETF, which is passively managed, topped the 5.24% average gain on funds in the US equity category. Over the last year, the BMO ETF has returned 16.26%, ahead of the 10.58% return on the average fund in its category, leaving it in the 9th percentile for performance.
The Neutral-rated BMO NASDAQ 100 Equity Index ETF launched in February 2019.
Global X Nasdaq-100 Index Corporate Class ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.27%
- Morningstar Category: US Equity
With an 8.59% gain, the C$1 billion Global X Nasdaq-100 Index Corporate Class ETF ranked ninth in May. The passively managed Global X ETF outperformed the 5.24% return on the average US equity fund. Over the last 12 months, the fund has returned 16.55%, ahead of the 10.58% return on funds in its category, placing it in the 7th percentile.
The Global X Nasdaq-100 Index Corporate Class ETF, launched in April 2016, has a Morningstar Medalist Rating of Neutral.
Invesco ESG NASDAQ 100 Index ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.21%
- Morningstar Category: US Equity
The tenth-best-performing ETF was the C$281 million Invesco ESG NASDAQ 100 Index ETF, which gained 8.58% in May. The passively managed Invesco ETF beat the 5.24% average return on funds in the US equity category. Over the past year, the Invesco ESG NASDAQ 100 Index ETF rose 15.48%, outperforming the 10.58% return on the average fund in its category and placing it in the 11th percentile.
The Invesco ESG NASDAQ 100 Index ETF has a Medalist Rating of Silver. It launched in November 2021.
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 Tom Lauricella.
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.
