Well-rated ETF equivalents to mutual funds
What are we looking for:
Well-rated exchange-traded fund equivalents to existing mutual funds.
The screen:
Fee pressure in Canada shows little sign of easing. Between regulatory scrutiny, heightened cost transparency and an increasingly fee-sensitive investor base, fund companies have been rethinking how products are packaged and delivered. One of the clearest outcomes of this shift has been the steady migration from traditional mutual fund structures toward ETFs.
In fact, last year marked a milestone: For the first time, ETF launches outpaced mutual fund launches in Canada. Even after excluding the roughly 50 single-stock ETFs introduced in 2025, 201 of the 374 newly launched funds came to market as ETFs. The result is an ETF ecosystem that has grown broader and more competitive – today, 1,863 ETFs are listed in Canada.
Importantly, this growth has not been driven solely by novel strategies. Morningstar has identified 361 ETFs that are clones – or are very similar in strategy – to existing mutual funds, underscoring how fund companies are increasingly repackaging proven investment approaches into the ETF wrapper rather than reinventing the wheel.
For investors, this evolution matters. ETFs can offer greater flexibility around entry and exit, potential fee savings (particularly if advice is not needed) and the ability to access well-established investment processes.
With that in mind, the screen below highlights five-star ETFs that are clones/similar to existing mutual funds, giving cost-conscious investors a practical starting point when evaluating whether an ETF alternative may better suit their needs.
As a reminder, the Morningstar Rating for Funds (informally the “star rating”) is an objective look back at risk-adjusted, after-free returns, placing the most emphasis of the past three years of performance and considering 10 years of data if they are available.
What we found:
The ETFs that met the above requirement are listed in the table alongside their categories, whether they are actively or passively managed, management expense ratios (MERs), inception dates and trailing performance.
Also included is the Morningstar Medalist Rating, a qualitative assessment of an ETF’s ability to outperform peers in the future, based on analysis of people (the tenure and track record of the portfolio managers), parent (the stewardship qualities of the fund company) and process (consistency and repeatability of the investment approach).
I note importantly that this is not a call to ditch good advice. In fact, Morningstar’s own studies show consistently that good advice adds real value to long-term outcomes, whether it be in the form of financial planning, tax strategies or behavioural coaching through choppy markets.
But if these are not services you value as an investor, this list is a great starting point for further research, particularly if you own a mutual fund equivalent of any of these listed investments.
This article does not constitute financial advice. Investors are urged to conduct their own independent research before buying or selling any of the investments listed here.
Ian Tam, CFA, is director of investment research for Morningstar Canada.
