3 Best US Equity ETFs in Canada (June 2026)
The best U.S. equity ETFs in Canada include VUN.TO (~0.06% MER), XUU.TO (~0.06%), and ZSP.TO (~0.09%). These ETFs provide broad exposure to the U.S. stock market, offering strong growth potential and diversification, but come with currency risk and foreign withholding tax considerations.
U.S. equity ETFs are a core building block for Canadian investors seeking long-term growth and diversification beyond the TSX. ETFs like VUN.TO, XUU.TO, and ZSP.TO provide exposure to the U.S. stock market, including some of the world’s largest and most innovative companies.
The key advantage of U.S. equity ETFs is broad sector exposure, especially to technology, healthcare, and consumer sectors that are underrepresented in Canada. However, investors should consider currency fluctuations and tax implications when investing in U.S. markets.
In this guide, we break down the best U.S. equity ETFs in Canada, comparing diversification, fees, and risk so you can choose the right ETF for your TFSA, RRSP, or long-term growth 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% | +13.18% | +27.97% |
XUU.TO iShares Core S&P US Total Market | — | $4.5B | 1.02% | +13.11% | +27.52% |
ZSP.TO BMO S&P 500 | — | $23.9B | 0.75% | +12.54% | +27.62% |
What Is an ETF?
A U.S. equity ETF in Canada is an exchange-traded fund that invests in American stocks, providing exposure to companies listed on U.S. exchanges. These ETFs allow Canadians to access the U.S. equity market through TSX-listed funds or U.S.-listed alternatives.
For example, VUN.TO (~0.06% MER) and XUU.TO (~0.06% MER) track the total U.S. stock market, offering exposure to large-, mid-, and small-cap companies. ZSP.TO (~0.09% MER) tracks the S&P 500, focusing on large-cap U.S. stocks, while ZUU.TO (~0.06% MER) offers a CAD-hedged version of the U.S. market.
U.S. equity ETFs are commonly used in TFSAs and RRSPs for growth and diversification. Investors should consider currency exposure, hedging, and tax treatment when selecting an ETF.
The 3 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
Vanguard US Total Market
$141.93
+13.18% 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
+13.18%
1Y
+27.97%
3Y
+22.32%
5Y
+14.98%
iShares Core S&P US Total Market
$77.72
+13.11% YTD
NA
Returns
YTD
+13.11%
1Y
+27.52%
3Y
+22.36%
5Y
+15.40%
BMO S&P 500
$116.02
+12.54% YTD
Returns
YTD
+12.54%
1Y
+27.62%
3Y
+22.77%
5Y
+16.33%
Pros & Cons
Pros
- Broad exposure to the U.S. equity market across multiple sectors
- Strong long-term growth potential driven by leading global companies
- Access to sectors like technology and healthcare underrepresented in Canada
- Low-cost options available (VUN.TO and XUU.TO ~0.06% MER)
Cons
- Currency fluctuations (USD/CAD) can impact returns
- U.S. dividends are subject to foreign withholding tax
- S&P 500 ETFs like ZSP.TO are concentrated in large-cap stocks
- Market performance can be driven by a small number of mega-cap companies
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. equity ETF in Canada?
VUN.TO is one of the best U.S. equity ETFs in Canada due to its low ~0.06% MER and full exposure to the U.S. stock market. XUU.TO offers a similar structure, while ZSP.TO focuses specifically on the S&P 500.
What’s the difference between VUN.TO and ZSP.TO?
VUN.TO tracks the total U.S. stock market, including small- and mid-cap stocks, while ZSP.TO tracks the S&P 500, focusing only on large-cap companies. VUN.TO offers broader diversification, while ZSP.TO is more concentrated.
Should I choose hedged or unhedged U.S. equity ETFs?
Unhedged ETFs expose you to USD/CAD currency movements, which can enhance diversification over time. Hedged ETFs like ZUU.TO reduce currency risk but may increase costs. Most long-term investors prefer unhedged exposure.