Best ESG ETFs Canada 2026
| ETF | Ticker | MER | Focus | Holdings |
|---|---|---|---|---|
| iShares ESG Aware MSCI Canada | XESG | 0.17% | Canadian ESG | 90+ |
| iShares ESG Equity ETF Portfolio | GEQT | 0.24% | Global all-equity ESG | 1,500+ |
| BMO MSCI USA ESG Leaders | ESGA | 0.25% | US ESG leaders | 300+ |
| iShares ESG Balanced ETF Portfolio | GBAL | 0.24% | Global balanced ESG (60/40) | 2,000+ |
| BMO Balanced ESG ETF | ZESG | 0.20% | Balanced ESG | Multi-asset |
| Mackenzie Global ESG & Climate Leaders | MCLM | 0.55% | Global climate leaders | 100+ |
| NBI Sustainable Canadian Equity ETF | NSCE | 0.55% | Canadian sustainable | 50+ |
ESG vs Non-ESG Equivalents
| ESG ETF | Non-ESG Equivalent | MER Difference |
|---|---|---|
| XESG (Canadian ESG) | XIU (S&P/TSX 60) | 0.17% vs 0.18% |
| GEQT (Global ESG equity) | XEQT (Global equity) | 0.24% vs 0.20% |
| GBAL (Global ESG balanced) | XBAL (Global balanced) | 0.24% vs 0.20% |
| ESGA (US ESG) | VFV (S&P 500) | 0.25% vs 0.09% |
What ESG ETFs Typically Exclude
| Sector/Activity | Usually Excluded |
|---|---|
| Tobacco | ✅ |
| Controversial weapons | ✅ |
| Thermal coal | ✅ |
| Oil sands (some funds) | Varies |
| Gambling | Some funds |
| Nuclear | Some funds |
| Adult entertainment | ✅ |
Who Should Buy ESG ETFs
| Profile | Recommendation |
|---|---|
| Values-aligned investing | ✅ Matches your principles |
| Want similar returns to market | ✅ Performance is comparable |
| Want lowest MER possible | ⚠️ Non-ESG versions are marginally cheaper |
| Heavy energy/oil sector believer | ❌ ESG excludes most fossil fuels |