Three Canadian ETFs Worth Buying and Holding Forever in Your TFSA

If your goal is long-term, tax-free growth combined with simplicity and diversification, owning Canadian ETFs inside your TFSA can be a smarter strategy than trying to pick individual stocks. The right ETFs can give you exposure to large baskets of quality companies, reduce single-company risk, and let your money compound without worrying about trading timing or stock selection.

1) Vanguard FTSE Canada All Cap Index ETF (TSX: VCN)
VCN tracks the entire Canadian equity market, giving you exposure to large, mid and small-cap companies across key sectors like financials, energy, industrials and utilities. By holding VCN “forever,” you’re effectively owning a piece of the entire Canadian economy, and reaping returns as companies grow, pay dividends and reinvest profits. This broad diversification smooths out volatility and avoids the risk of putting too much capital into any single business.

2) iShares S&P/TSX Composite High Dividend Index ETF (TSX: XEI)
For investors who want income from dividends as well as growth, XEI is a compelling choice. It holds a diversified basket of Canadian dividend-paying stocks and distributes income quarterly, making it easy to reuse or reinvest that cash. Dividend yield alone isn’t enough — but when combined with the stability of established Canadian companies, this ETF can be a cornerstone of a long-term income-focused portfolio.

3) BMO Covered Call Canadian Banks ETF (TSX: ZWB)
ZWB uses a covered-call strategy on major Canadian banks to boost yield and generate income while still participating in bank stock performance. Covered calls tend to produce higher distributions — sometimes monthly — which can be particularly attractive in a TFSA where all income grows tax-free. Bank stocks already play a central role in many Canadian portfolios; adding a covered-call element increases current income without sacrificing broad exposure to the financial sector.

Also Read: Best long term Canadian stocks

Why These ETFs Fit a “Forever TFSA” Strategy
All three ETFs are diversified, liquid and broad — reducing risk compared with single stocks. They pair value growth (VCN) with income-oriented exposure (XEI and ZWB), giving you both market participation and cash flow. Because they’re held inside a TFSA, dividends and capital gains are completely tax-free, which means every dollar stays invested and compounds over time.

Also Read: Stock investment Canada for beginners

For investors who want a set-and-forget core portfolio inside a TFSA, these Canadian ETFs offer simplicity, diversification and longevity — key ingredients for building wealth over decades.