3 Best US ETFs for Canadian Investors (June 2026)
The best U.S. ETFs for Canadian investors include VFV.TO (~0.06% MER), ZSP.TO (~0.09%), and XUU.TO (~0.06%). These ETFs provide exposure to the U.S. stock market, offering strong diversification and long-term growth potential, but come with currency risk and foreign withholding tax considerations.
U.S. ETFs are one of the most popular ways for Canadian investors to diversify beyond the TSX and gain exposure to the world’s largest economy. ETFs like VFV.TO, ZSP.TO, and XUU.TO provide access to leading U.S. companies across sectors such as technology, healthcare, and consumer goods.
The key advantage of U.S. ETFs is sector diversification and strong long-term performance driven by companies like Apple, Microsoft, and Amazon. However, investors must consider currency exposure and foreign withholding tax when investing in U.S. markets.
In this guide, we break down the best U.S. ETFs for Canadian investors, comparing fees, diversification, 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% |
XUU.TO iShares Core S&P US Total Market | — | $4.5B | 1.02% | +13.11% | +27.52% |
What Is an ETF?
A U.S. ETF for Canadians is an exchange-traded fund that provides exposure to American equities while being listed on the TSX or accessible through U.S. markets. These ETFs allow Canadians to invest in the U.S. economy without directly buying individual U.S. stocks.
For example, VFV.TO (~0.06% MER) and ZSP.TO (~0.09% MER) track the S&P 500, offering exposure to the largest U.S. companies. XUU.TO (~0.06% MER) and VUN.TO (~0.06% MER) track the total U.S. stock market, including large-, mid-, and small-cap stocks.
U.S. ETFs are commonly used in TFSAs and RRSPs for growth and diversification. Investors should consider currency risk and tax treatment, especially for dividend-paying ETFs.
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 US Total Market
$77.72
+13.11% YTD
NA
Returns
YTD
+13.11%
1Y
+27.52%
3Y
+22.36%
5Y
+15.40%
Pros & Cons
Pros
- Exposure to the world’s largest and most diversified equity market
- Strong long-term performance driven by leading global companies
- Access to sectors underrepresented in Canada like technology and healthcare
- Low-cost options available (VFV.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 are concentrated in large-cap stocks
- Market performance heavily influenced by a few 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. ETF in Canada?
VFV.TO is one of the most popular U.S. ETFs in Canada due to its low ~0.06% MER and exposure to the S&P 500. Investors looking for broader diversification may consider XUU.TO or VUN.TO, which track the total U.S. stock market.
Should Canadians invest in U.S. ETFs?
Yes, many Canadian investors include U.S. ETFs to diversify beyond the TSX and gain exposure to global leaders in sectors like technology and healthcare. U.S. equities have historically delivered strong long-term returns.
Are U.S. ETFs better in a TFSA or RRSP?
U.S. ETFs can be held in both accounts, but tax treatment differs. In a TFSA, U.S. dividends are subject to a 15% withholding tax. In an RRSP, this tax may be avoided for U.S.-listed ETFs, though Canadian-listed ETFs may still have some tax drag.