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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 January 2025, the top-performing ETFs included precious metals equity funds Global X Gold Producer Equity Covered Call ETF GLCC and Harvest Global Gold Giants Index ETF HGGG. 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 only 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, known as ETNs.
The 10 Best-Performing ETFs for January 2025
1. Global X Gold Producer Equity Covered Call ETF GLCC
2. Harvest Global Gold Giants Index ETF HGGG
3. iShares S&P/TSX Global Gold Index ETF XGD
4. BMO Equal Weight Global Gold Index ETF ZGD
5. BMO Junior Gold Index ETF ZJG
6. iShares S&P/TSX Capped Materials Index ETF XMA
7. Global X Europe 50 Index Corporate Class ETF HXX
8. BMO Equal Weight US Banks Index ETF ZBK
9. BMO Covered Call US Banks ETF ZWK
10. RBC US Banks Yield Index ETF RUBY
Metrics for the Best-Performing ETFs
Global X Gold Producer Equity Covered Call ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.78%
• Morningstar Category: Precious Metals Equity
The C$286 million Global X Gold Producer Equity Covered Call ETF was the best-performing ETF in January, with a 17.92% return. The passively managed Global X ETF beat the 5.36% decline on the average fund in Morningstar’s precious metals equity category for the month. Over the last 12 months, the Global X Gold Producer Equity Covered Call ETF has returned 55.67%, outperforming the 26.33% gain on the average fund in its category, leaving the ETF in the 58th percentile.
The Global X Gold Producer Equity Covered Call ETF has a Negative Morningstar Medalist Rating, meaning that 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.
Harvest Global Gold Giants Index ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.68%
• Morningstar Category: Precious Metals Equity
The second-best performing ETF in January was the C$15 million Harvest Global Gold Giants Index ETF. The passively managed Harvest Portfolios ETF returned 16.20%, outperforming the average precious metals equity fund, which lost 5.36%. Looking back over the last year, the Harvest Global Gold Giants Index ETF has returned 64.69%, outperforming the 26.33% return on the average fund in its category, leaving the ETF in the 28th percentile.
The Neutral-rated Harvest Global Gold Giants Index ETF was launched in January 2019.
iShares S&P/TSX Global Gold Index ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.61%
• Morningstar Category: Precious Metals Equity
The C$2 billion iShares S&P/TSX Global Gold Index ETF ranked third for the month, returning 15.99%. The iShares ETF, which is passively managed, topped the 5.36% average loss on funds in the precious metals equity category for January. Over the last 12 months, the iShares ETF has returned 51.24%, ahead of the 26.33% gain on the average fund in its category, leaving the ETF in the 79th percentile.
The iShares S&P/TSX Global Gold Index ETF, launched in March 2001, has a Morningstar Medalist Rating of Neutral.
BMO Equal Weight Global Gold Index ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.60%
• Morningstar Category: Precious Metals Equity
With a 14.23% return, the C$84 million BMO Equal Weight Global Gold Index ETF ranked fourth in January. The passively managed BMO ETF outperformed the 5.36% loss on the average precious metals equity fund. Over the last year, the fund has gained 73.35%, ahead of the 26.33% return on funds in its category, placing it in the 1st percentile for the period.
The BMO Equal Weight Global Gold Index ETF has a Neutral Morningstar Medalist Rating. It was launched in November 2012.
BMO Junior Gold Index ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.61%
• Morningstar Category: Precious Metals Equity
The fifth-best performing ETF was the C$90 million BMO Junior Gold Index ETF, which gained 12.71% in January. This passively managed BMO ETF beat the 5.36% average loss on funds in the precious metals equity category. Over the past 12 months, the BMO Junior Gold Index ETF rose 64.43%, outperforming the 26.33% return on the average fund in its category and placing it in the 36th percentile.
The BMO Junior Gold Index ETF, launched in January 2010, has a Morningstar Medalist Rating of Neutral.
iShares S&P/TSX Capped Materials Index ETF
• Morningstar Rating: ★★★
• Expense Ratio: 0.61%
• Morningstar Category: Natural Resources Equity
The C$194 million iShares S&P/TSX Capped Materials Index ETF was the sixth-best performing Canadian ETF in January, with a 10.12% return. The return on the passively managed iShares ETF topped the 5.76% decline on the average fund in Morningstar’s natural resources equity category. Looking back over the last year, the iShares S&P/TSX Capped Materials Index ETF has returned 41.83%, outperforming the 10.02% return on the average fund in its category, leaving the ETF in the 10th percentile.
The Neutral-rated iShares S&P/TSX Capped Materials Index ETF was launched in December 2005.
Global X Europe 50 Index Corporate Class ETF
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.19%
• Morningstar Category: European Equity
The seventh-best performing ETF in January was the C$96 million Global X Europe 50 Index Corporate Class ETF. The passively managed Global X ETF returned 9.43%, outperforming the average European equity fund, which lost 0.26%. Looking back over the last 12 months, the Global X Europe 50 Index Corporate Class ETF has returned 19.83%, outperforming the 8.01% return on the average fund in its category, leaving the ETF in the 7th percentile.
The Global X Europe 50 Index Corporate Class ETF has a Morningstar Medalist Rating of Bronze. It was launched in December 2016.
BMO Equal Weight US Banks Index ETF
• Morningstar Rating: ★★
• Expense Ratio: 0.38%
• Morningstar Category: Financial Services Equity
The C$809 million BMO Equal Weight US Banks Index ETF ranked eighth for the month, returning 8.84%. The BMO ETF, which is passively managed, topped the 2.71% average loss on funds in the financial services equity category. Over the last year, the BMO ETF has returned 55.20%, ahead of the 28.06% return on the average fund in its category, leaving it in the 1st percentile for performance.
The Neutral-rated BMO Equal Weight US Banks Index ETF was launched in February 2014.
BMO Covered Call US Banks ETF
• Morningstar Rating: ★
• Expense Ratio: 0.71%
• Morningstar Category: Financial Services Equity
With an 8.60% gain, the C$372 million BMO Covered Call US Banks ETF ranked ninth in January. The actively managed BMO ETF outperformed the 2.71% loss on the average financial services equity fund. Over the last 12 months, the fund has returned 49.99%, ahead of the 28.06% return on funds in its category, placing it in the 9th percentile.
The BMO Covered Call US Banks ETF, launched in February 2019, has a Morningstar Medalist Rating of Neutral.
RBC US Banks Yield Index ETF
• Morningstar Rating: ★★
• Expense Ratio: 0.32%
• Morningstar Category: Financial Services Equity
The tenth-best performing ETF was the C$18 million RBC US Banks Yield Index ETF, which gained 8.23% in January. The passively managed RBC ETF beat the 2.71% average loss on funds in the financial services equity category. Over the past year, the RBC US Banks Yield Index ETF rose 52.03%, outperforming the 28.06% return on the average fund in its category and placing it in the 4th percentile.
The RBC US Banks Yield Index ETF has a Morningstar Medalist Rating of Bronze. It was launched in May 2018.
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 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.