4 Best US Dividend ETFs for Canadians (July 2026)
The best U.S. dividend ETFs for Canadians include VUN.TO and XUU.TO (~0.06% MER) for broad market exposure, plus DGR-B.TO (~0.38%) and ZDY.TO (~0.39%) for dividend-focused strategies. These ETFs provide diversification beyond Canada but come with foreign withholding tax and currency considerations.
U.S. dividend ETFs are a popular choice for Canadian investors looking to diversify beyond the TSX and access some of the world’s largest dividend-paying companies. ETFs like VUN.TO and XUU.TO provide broad exposure to the U.S. market, while DGR-B.TO and ZDY.TO focus specifically on dividend-paying and dividend growth companies.
The key advantage of U.S. dividend ETFs is sector diversification. Unlike Canadian dividend ETFs, which are heavily concentrated in financials and energy, U.S. ETFs provide exposure to technology, healthcare, consumer goods, and industrials. However, investors must also consider currency exposure and foreign withholding tax when investing in U.S. dividend ETFs.
In this guide, we break down the best U.S. dividend ETFs for Canadians, comparing yield, diversification, fees, and tax considerations so you can choose the right ETF for your TFSA, RRSP, or long-term income 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 VUN.TO Vanguard US Total Market | — | $18.3B | 0.75% | +13.35% | +27.97% |
XUU.TO iShares Core S&P US Total Market | — | $4.5B | 1.02% | +13.33% | +27.52% |
DGR-B.TO CI WisdomTree U.S. Quality Dividend Growth Index ETF | — | $330M | 1.17% | +10.35% | — |
ZDY.TO BMO US Dividend ETF (CAD) | 0.30% | $902M | 1.48% | +16.49% | +31.57% |
What Is an ETF?
A U.S. dividend ETF for Canadians is an exchange-traded fund that provides exposure to dividend-paying U.S. companies while being listed on the TSX. These ETFs allow Canadians to invest in U.S. markets without needing to convert currency manually or purchase U.S.-listed securities.
For example, VUN.TO (~0.06% MER) and XUU.TO (~0.06% MER) track the total U.S. stock market and include dividend-paying companies across all sectors. DGR-B.TO (~0.38% MER) focuses on U.S. dividend growth companies with strong fundamentals, while ZDY.TO (~0.39% MER) targets high-quality U.S. dividend-paying stocks.
These ETFs are commonly used in TFSAs and RRSPs for diversification and income. However, U.S. dividends are subject to a 15% foreign withholding tax, which is not recoverable in a TFSA but may be avoided in an RRSP depending on the ETF structure. Currency exposure also plays a role, as most of these ETFs are unhedged to CAD.
The 4 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
Vanguard US Total Market
$142.14
+13.35% YTD
Vanguard U.S. Total Market 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 returns of primarily large-capitalization U.S. stocks. Currently, this Vanguard ETF seeks to track the CRSP US Total Market Index (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies.
Returns
YTD
+13.35%
1Y
+27.97%
3Y
+22.32%
5Y
+14.98%
iShares Core S&P US Total Market
$77.87
+13.33% YTD
NA
Returns
YTD
+13.33%
1Y
+27.52%
3Y
+22.36%
5Y
+15.40%
CI WisdomTree U.S. Quality Dividend Growth Index ETF
$64.51
+10.35% YTD
BMO US Dividend ETF (CAD)
$58.62
+16.49% YTD
Returns
YTD
+16.49%
1Y
+31.57%
3Y
+20.23%
5Y
+14.72%
Pros & Cons
Pros
- Exposure to globally diversified U.S. dividend-paying companies across multiple sectors
- Lower concentration risk compared to Canadian dividend ETFs (less reliance on banks and energy)
- Access to dividend growth strategies through ETFs like DGR-B.TO and ZDY.TO
- Low-cost broad market options available (VUN.TO and XUU.TO ~0.06% MER)
Cons
- U.S. dividends are subject to 15% foreign withholding tax, especially in a TFSA
- Currency fluctuations (USD/CAD) can impact returns
- Broad ETFs like VUN.TO and XUU.TO are not purely income-focused
- Higher MERs for dividend-focused ETFs like DGR-B.TO and ZDY.TO (~0.38%–0.39%)
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 U.S. dividend ETF for Canadians?
VUN.TO is a popular option because it offers broad exposure to the U.S. stock market at a low ~0.06% MER, including dividend-paying companies across all sectors. Investors focused on dividend growth may prefer DGR-B.TO (~0.38% MER), which targets high-quality U.S. companies with consistent dividend increases.
What’s the difference between VUN.TO and ZDY.TO?
VUN.TO tracks the total U.S. stock market and includes both dividend and non-dividend-paying companies, while ZDY.TO focuses specifically on U.S. dividend-paying stocks. VUN.TO offers broader diversification and lower fees, while ZDY.TO provides higher income but with a higher MER and more concentration.
Are U.S. dividend ETFs good for a TFSA or RRSP?
U.S. dividend ETFs can be held in both accounts, but tax treatment differs. In a TFSA, U.S. dividends are subject to a 15% withholding tax that cannot be recovered. In an RRSP, this tax may be avoided for U.S.-listed ETFs, but Canadian-listed ETFs like VUN.TO may still experience withholding at the fund level.