The best and most affordable ETFs students in Canada can invest
- sina moeini
- Nov 26
- 6 min read
Investing in today’s world can feel overwhelming, especially for students in Canada who are just starting to think about saving and building long-term wealth. Between tuition costs, part-time jobs, and financial responsibilities, the idea of investing may seem far away , but building wealth early is easier than most people think. One of the simplest and safest ways to start investing is through ETFs, or Exchange-Traded Funds. They are affordable, beginner-friendly, and available through low-cost platforms like Wealthsimple.
In this article, we explore why ETFs are ideal for students, the best and most affordable ones to consider, how Wealthsimple makes ETF investing simple, and which ETFs in Canada and the U.S. are the most liquid and reliable for long-term growth.
1. Why ETFs Are the Best Investment for Students in Canada
Most beginners start investing by buying individual stocks. It seems exciting — picking the next Tesla or Apple and hoping it grows. But investing in single stocks also carries much higher risk, requires deeper research, and often leads to emotional decision-making.
ETFs solve these problems.
✔ 1.1 ETFs Give Instant Diversification
Instead of buying one stock, an ETF holds dozens or hundreds of companies inside a single investment. This reduces risk because your money isn’t tied to one company failing.
For example:
The S&P 500 ETF holds 500 companies.
A Canadian index ETF tracks dozens of top TSX stocks.
A global ETF contains companies across many countries.
✔ 1.2 ETFs Are Much Cheaper Than Stocks
A single share of big stocks like Amazon or Nvidia can cost hundreds or thousands of dollars. But a broad ETF can cost $20, $50, or $100 , easily accessible even for students.
✔ 1.3 ETFs Require No Expertise or Stock-Picking Skills
You don’t have to know which sector will win in 2025.You don’t need to guess when to buy or sell. As long as the economy grows over time , and historically, it always has , ETFs grow too.
✔ 1.4 ETFs Offer Long-Term Compounding
When you're young, time is your greatest asset. Even small monthly investments in ETFs compound dramatically over 20–30 years.
✔ 1.5 ETFs Are Passive and Low-Stress
You don't monitor charts, earnings, news, or volatility. Just buy consistently and let compounding do the work.
2. Using Wealthsimple: The Easiest Platform for Students to Invest in ETFs
One of the biggest reasons ETFs are now extremely popular in Canada is the availability of simple, zero-commission platforms such as Wealthsimple.
✔ 2.1 $0 Commission Trading
Wealthsimple lets you buy and sell ETFs without paying a trading fee, making it ideal for students with small portfolios.
✔ 2.2 Fractional ETF Purchases
Even if an ETF costs $50, you can invest as little as $1 in a fractional amount.
✔ 2.3 Automatic Dividend Reinvestment
Wealthsimple can automatically reinvest dividends into additional ETF units , maximizing compounding.
✔ 2.4 Supports TFSA, RRSP, and Non-Registered Accounts
ETFs can be held tax-free inside a TFSA or tax-deferred inside an RRSP, perfect for students starting small.
✔ 2.5 Easy to Use
Wealthsimple’s simple interface and educational content help new investors learn as they grow.
✔ 2.6 Own Popular ETFs Like QQQ, SPY, VOO, XEQT, etc.
Wealthsimple gives Canadian students access to the most popular ETFs in both Canada and the U.S.
For beginners, Wealthsimple is often the most convenient starting point.
3. The Best and Most Affordable ETFs for Students in Canada (2025 List)
Below is a curated list of the top ETFs that Canadian students can buy at low cost, with strong long-term potential, high liquidity, and easy access through Wealthsimple
3.1 Canadian ETFs (CAD-Denominated) Recommended for Students
✔ XEQT – iShares Core Equity ETF Portfolio
Type: All-equity portfolio Holdings: ~13,000 global stocks Why students love it:
Very simple set-and-forget investing.
Pure growth since it holds only equities.
XEQT is perfect for students because it's aggressive and long-term.
✔ VEQT – Vanguard All-Equity ETF Portfolio
Similar to XEQT, VEQT is a 100% stock ETF designed for young investors. Vanguard is famous for low fees and high efficiency.
✔ VFV – Vanguard S&P 500 Index ETF
Tracks: S&P 500 (U.S. top 500 companies)Why it’s popular:
Most liquid Canadian-listed U.S. market ETF.
Exposure to Apple, Microsoft, Google, Nvidia, etc.
Low management fee.
VFV is ideal for students who want U.S. growth exposure without currency conversion.
✔ ZSP – BMO S&P 500 ETF
A competitor to VFV. Same S&P 500 exposure, high liquidity, low fees. Often used by students who prefer BMO products.
✔ XIC – iShares S&P/TSX Capped Composite ETF
Tracks: Canadian stock market Ideal for: Students who want Canadian exposure (banks, energy, telecoms).While the U.S. market tends to outperform long term, XIC provides home-country stability.
✔ VCN — Vanguard FTSE Canada All-Cap ETF
Another excellent Canadian ETF with broad market exposure and low cost.
3.2 U.S. ETFs (USD-Denominated) Popular for Long-Term Growth
If a student can invest in U.S. ETFs (usually by converting CAD → USD on Wealthsimple or holding USD), these are the most powerful long-term vehicles globally.
✔ VOO – Vanguard S&P 500 ETF
The king of long-term ETFs. Backed by Vanguard, extremely low fees, huge liquidity.
✔ SPY – SPDR S&P 500 ETF
The world’s oldest and most liquid ETF.
Advantages:
Massive daily trading volume
Ideal for students who want reliability and transparency
Holds the same 500 U.S. companies as VOO and VFV
✔ QQQ – Nasdaq-100 ETF
Perfect for tech enthusiasts.
Includes: Apple, Microsoft, Nvidia, Amazon, Meta, Tesla, Google Why students like it:
Higher growth potential than the S&P 500
Heavy tech exposure
One of the most traded ETFs in the world
QQQ is excellent for long-term investors comfortable with higher volatility.
✔ SCHD – Schwab U.S. Dividend Equity ETF
For students who want:
Passive income
Low volatility
High-quality dividend companies
Popular with long-term investors who prefer stability.
4. The Most Common & Liquid ETFs in North America for Long-Term Investing
Liquidity matters because:
It reduces trading spreads
Prices track index movement more accurately
It increases stability
Most Liquid U.S. ETFs
SPY – S&P 500
QQQ – Nasdaq-100
VOO – Vanguard S&P 500
IVV – iShares S&P 500
IWM – Russell 2000 (small-cap U.S.)
These ETFs trade billions of dollars daily — ideal for long-term holding or even frequent contributors.
Most Liquid Canadian ETFs
VFV – Vanguard S&P 500 (CAD)
XIC – iShares Canada Index
XIU – iShares TSX 60 (one of Canada’s oldest ETFs)
ZSP – BMO S&P 500
XEQT / VEQT – All-equity portfolio ETFs
These Canadian ETFs have large AUM, low fees, and high stability.
5. Why ETFs Beat Stocks for Students (US and Canada)
✔ 5.1 ETFs Reduce the Risk of Losing Money
If you buy a single stock, one bad earnings report could cut your investment in half overnight. With ETFs, even if one company fails, dozens or hundreds of others compensate.
✔ 5.2 No Need to Learn Financial Statements or Trade Actively
Students don’t have to spend hours analyzing:
P/E ratios
Quarterly earnings
Balance sheets
Market news
ETF investing is automatic wealth building.
✔ 5.3 ETF Fees Are Extremely Low
ETF fees (MERs) range from:
0.03% to 0.25% on average.
Stocks cost $0 to trade, but research + decision-making takes time.
✔ 5.4 ETFs Match Market Performance
Most active stock pickers fail to beat the market long-term.
ETFs like:
VOO
VFV
SPY
QQQ
…guarantee you get market returns — historically profitable over decades.
✔ 5.5 Students Can Start with $1
Stocks require full share purchases.But ETFs on Wealthsimple allow fractional investing.
6. Simple ETF Portfolios for Students in Canada
Here are sample portfolios depending on student goals:
Option 1: Ultra-Simple Growth Portfolio
100% XEQT or VEQT
A single ETF gives global diversification and full equity exposure.
Ideal for students under 30.
Option 2: U.S. Growth Portfolio
70% VFV or ZSP
30% QQQ
This is aggressive and tech-heavy — great for long-term compounding.
Option 3: Balanced Portfolio (Lower Risk)
60% XEQT
40% XBAL (balanced ETF with bonds)
Ideal for students who dislike volatility.
7. Final Thoughts: Why ETFs Are the Perfect First Investment for Canadian Students
ETFs allow students to:
Start investing early
Build wealth passively
Avoid unnecessary risk
Own global companies with very little money
Benefit from decades of market compounding
Stock-picking is stressful, risky, and time-consuming. ETFs are stable, simple, and proven to work over the long term.
With platforms like Wealthsimple offering:
$0 commissions
Fractional ETF investing
Easy TFSA/RRSP setup
Access to Canadian and U.S. ETFs
Students today have more investing power than any generation before them.
If you’re a student in Canada looking to start your investment journey, ETFs are the smartest, safest, and most affordable way forward. Your future wealth will thank you.
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