3 Best S&P 500 ETFs in Canada (June 2026)
The best S&P 500 ETFs in Canada include VFV.TO (~0.06% MER), ZSP.TO (~0.09%), and XUS.TO (~0.06%). These ETFs track the performance of 500 large U.S. companies, offering low-cost diversification and strong long-term growth, but with currency risk and tax considerations for Canadian investors.
S&P 500 ETFs are one of the most popular ways for Canadian investors to gain exposure to the U.S. stock market and some of the world’s largest companies. ETFs like VFV.TO, ZSP.TO, and XUS.TO track the S&P 500, providing access to 500 leading U.S. firms across sectors like technology, healthcare, and financials.
The key advantage of S&P 500 ETFs is their strong long-term performance and low fees. However, investors should consider currency exposure, tax implications, and whether to choose hedged or unhedged versions.
In this guide, we break down the best S&P 500 ETFs in Canada, comparing fees, structure, and risk so you can choose the right ETF for your TFSA, RRSP, or long-term portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top VFV.TO Vanguard S&P 500 Index ETF | — | $33.1B | 0.84% | +12.50% | +27.55% |
ZSP.TO BMO S&P 500 | — | $23.9B | 0.75% | +12.54% | +27.62% |
XUS.TO iShares Core S&P 500 Index ETF | — | $12.6B | 1.13% | +12.89% | +27.61% |
What Is an ETF?
An S&P 500 ETF in Canada is an exchange-traded fund that tracks the performance of the S&P 500 Index, which includes 500 of the largest publicly traded companies in the United States. These ETFs provide broad exposure to the U.S. equity market through a single investment.
For example, VFV.TO (~0.06% MER) and ZSP.TO (~0.09% MER) track the S&P 500 with unhedged exposure to the U.S. dollar. XUS.TO (~0.06% MER) offers a CAD-hedged version, while HXS.TO (~0.10% MER) uses a swap-based structure that can improve tax efficiency in certain accounts.
S&P 500 ETFs are commonly used in TFSAs and RRSPs as a core growth holding. Investors should consider fees, currency exposure, and tax structure when selecting the best ETF.
The 3 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
Vanguard S&P 500 Index ETF
$187.97
+12.50% YTD
Vanguard S&P 500 Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad U.S. equity index that measures the investment return of large-capitalization U.S. stocks. Currently, this Vanguard ETF seeks to track the S&P 500 Index (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies.
Returns
YTD
+12.50%
1Y
+27.55%
3Y
+22.75%
5Y
+16.32%
BMO S&P 500
$116.02
+12.54% YTD
Returns
YTD
+12.54%
1Y
+27.62%
3Y
+22.77%
5Y
+16.33%
iShares Core S&P 500 Index ETF
$65.59
+12.89% YTD
Returns
YTD
+12.89%
1Y
+27.61%
3Y
+22.75%
5Y
+16.35%
Pros & Cons
Pros
- Exposure to 500 of the largest U.S. companies across multiple sectors
- Strong long-term historical performance
- Low-cost options available (VFV.TO and XUS.TO ~0.06% MER)
- Simple and effective core portfolio building block
Cons
- Concentrated in large-cap stocks and mega-cap companies
- Heavy weighting toward sectors like technology
- Currency fluctuations (USD/CAD) can impact returns for unhedged ETFs
- U.S. dividends are subject to foreign withholding tax
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best S&P 500 ETF in Canada?
VFV.TO is one of the most popular S&P 500 ETFs in Canada due to its low ~0.06% MER and simple structure. ZSP.TO offers a similar exposure, while XUS.TO provides a CAD-hedged option for investors looking to reduce currency risk.
Should I choose a hedged or unhedged S&P 500 ETF?
Unhedged ETFs expose you to USD/CAD currency movements, which can diversify returns over time. Hedged ETFs like XUS.TO reduce currency risk but may increase costs. Many long-term investors prefer unhedged ETFs.
Are S&P 500 ETFs good for a TFSA or RRSP?
S&P 500 ETFs can be held in both TFSAs and RRSPs. In a TFSA, returns are tax-free, but U.S. dividends are subject to withholding tax. In an RRSP, taxes are deferred, and certain U.S. withholding taxes may be reduced depending on the ETF structure.