The best S&P 500 ETF in Canada is a narrower question than it looks, because the Canadian-listed funds all track the same index of large US companies. What separates them is the fee, the way each fund actually holds the index, whether the US dollar is hedged, and the currency the units trade in. This page compares eight funds from Vanguard, BMO, iShares and Global X using only figures each issuer published on its own fund page or fact sheet, read on October 11, 2026. It is general education, not financial advice, and it does not tell you which fund to buy.
S&P 500 ETFs in Canada at a glance
| Fund | Type | Management fee | MER | Net assets | Distributions |
|---|---|---|---|---|---|
| VFV (Vanguard) | Unhedged, CAD | 0.08% | 0.08% | $36.2 billion | Quarterly |
| ZSP (BMO) | Unhedged, CAD | 0.08% | 0.09% | $26.4 billion | Quarterly |
| XUS (iShares) | Unhedged, CAD | 0.08% | 0.09% | $14.2 billion | Semi-annual |
| HXS (Global X) | Unhedged, CAD | 0.10% | 0.11% | $7.2 billion | At the manager’s discretion |
| XSP (iShares) | CAD-hedged | 0.08% | 0.09% | $16.7 billion | Semi-annual |
| VSP (Vanguard) | CAD-hedged | 0.08% | 0.08% | $6.3 billion | Quarterly |
| ZUE (BMO) | CAD-hedged | 0.08% | 0.09% | $5.1 billion | Quarterly |
| ZSP.U (BMO) | Unhedged, USD units | 0.08% | 0.09% | US$3.0 billion | Quarterly |
Asset dates differ by issuer: Vanguard’s totals are from its product pages, BMO’s ZSP and ZUE figures and both iShares figures are as of October 9, 2026, Global X’s is as at October 8, 2026, and the ZSP.U figure is from BMO’s August 31, 2026 fact sheet. The XUS figure is the one iShares shows on the Canadian-dollar units’ page; its XUS.U page shows net assets of the whole fund, both unit classes together, of $14.7 billion. HXS’s MER is as at June 30, 2026.
The table in sentences. Seven of the eight funds publish an MER of 0.08% or 0.09%, and HXS publishes 0.11%. VFV is the largest fund at $36.2 billion, followed by ZSP at $26.4 billion. The largest hedged fund, XSP at $16.7 billion, is bigger than its unhedged sibling XUS at $14.2 billion. Three issuers pay quarterly or semi-annually; Global X lists HXS’s distributions as at the manager's discretion.
What does each S&P 500 ETF cost on $10,000 a year?
On a $10,000 holding, the published MERs work out to between about $8 and about $11 a year, so the fee gap between the cheapest and the most expensive fund here is a few dollars. An MER is taken out of the fund’s returns; it is never billed to you separately.
| Fund | Published MER | Cost of holding $10,000 for one year |
|---|---|---|
| VFV, VSP | 0.08% | about $8 |
| ZSP, ZSP.U, ZUE, XUS, XSP | 0.09% | about $9 |
| HXS (MER only) | 0.11% | about $11 |
| HXS (MER plus trading expense ratio) | 0.11% + 0.49% | about $60 |
| VOO (US-listed, for reference) | 0.03% | about $3 |
Two details sit behind those numbers. First, the management fee and the MER are not the same thing. The MER adds taxes and other fund costs to the management fee, which is why ZSP, XUS and XSP show a management fee of 0.08% and an MER of 0.09%. Vanguard notes that the MER it shows includes waivers and absorptions, which it may discontinue.
Second, HXS carries costs the other funds do not show at the same scale. Global X publishes a trading expense ratio of 0.49% and a swap fee of up to 0.50% beside the 0.11% MER. Vanguard, by contrast, shows a trading expense ratio of 0.00% for VFV. Over the 10 years to September 30, 2026, Global X reports that HXS returned 15.74% a year against 16.26% for the total return index, a gap of about 0.52 percentage points a year. Past tracking is not a forecast.
To run the same sums on a different balance or over more years, the investment fee (MER) calculator takes any two fee levels.
How does each fund hold the S&P 500?
The four issuers use three different structures: holding the stocks directly, holding a US-listed ETF, and using swaps. The structure does not change which companies you are exposed to, but it changes what sits inside the fund.
| Fund | What the issuer says it holds | Structure |
|---|---|---|
| ZSP, ZSP.U | invests in and holds the index's constituent securities in the same proportion as the index | Holds the stocks directly |
| VFV | invests primarily in the US-domiciled Vanguard S&P 500 ETF | Holds a US-listed ETF |
| XUS | 99.94% in the iShares Core S&P ETF Trust (IVV) | Holds a US-listed ETF |
| HXS | Lists a swap fee and counterparty exposure; objective is the total return index | Uses swaps, corporate class |
| VSP | invests primarily in the US-domiciled Vanguard S&P 500 ETF, with the US-dollar exposure hedged back to the Canadian dollar | US-listed ETF plus a currency hedge |
| XSP | one fund, the iShares Core S&P ETF Trust (IVV), plus cash and a US-dollar/Canadian-dollar currency position | US-listed ETF plus a currency hedge |
| ZUE | a fund of fund whose management fees are reduced by those accrued in the underlying funds | Holds ZSP plus a currency hedge |
Holds the stocks directly. BMO says ZSP invests in and holds the index's constituent securities in the same proportion as the index, and its fact sheet counted 505 securities at August 31, 2026. ZSP.U is a unit class of the same fund, and ZUE sits on top of it: BMO’s August 31, 2026 fact sheet shows 98.91% of ZUE invested in ZSP.
Holds a US-listed ETF. Vanguard says VFV invests primarily in the US-domiciled Vanguard S&P 500 ETF, which trades in the US under the ticker VOO. iShares’ holdings table for XUS shows a single position, the iShares Core S&P ETF Trust (IVV), at 99.94% of the fund, with 504 underlying holdings. In both cases the Canadian fund is a wrapper around the issuer’s much larger US fund.
Uses swaps. Global X’s objective for HXS is to replicate, to the extent possible, the performance of the S&P 500 Index (Total Return), net of expenses. Its page lists a swap fee of up to 0.50% and counterparty exposure of 40.46% as at July 31, 2026, the markers of a fund that gets at least part of its index return from a contract with a counterparty instead of only from shares it owns. The fund page does not explain the mechanics. Global X says HXS suits an investor looking for total return exposure to large US companies who is not looking for regular distributions.
Should you pick a hedged or unhedged S&P 500 ETF?
There is no universally better choice between hedged and unhedged; they answer different worries. An unhedged fund (VFV, ZSP, XUS, HXS) gives you US stocks and the US dollar together. A hedged fund (VSP, XSP, ZUE) tries to give you US stocks without the currency.
How it works: S&P 500 companies are priced in US dollars. If US stocks are flat and the US dollar rises against the Canadian dollar, an unhedged fund’s Canadian-dollar price rises; if the US dollar falls, the price falls. A hedged fund offsets that. Vanguard says VSP uses derivative instruments to seek to hedge the US-dollar exposure of the index's securities back to the Canadian dollar. BMO says of ZUE that the US-dollar currency exposure is hedged back to the Canadian dollar. iShares’ objective for XSP is replicating the performance of the S&P 500 Hedged to Canadian Dollars Index, net of expenses.
What it did in the past, using one issuer’s own pair so the dates match. On iShares’ fund pages (latest month-end shown, September 30, 2026):
| Period | XUS (unhedged) | XSP (CAD-hedged) | Difference |
|---|---|---|---|
| 1 year | 17.86% | 13.10% | 4.76 points |
| 10 years, annualized | 15.83% | 13.48% | 2.35 points |
In sentences: over one year XUS returned 17.86% and XSP 13.10%; over 10 years XUS returned 15.83% a year and XSP 13.48%. The unhedged fund came out ahead in both windows. That is a description of those periods, not a rule: the gap reflects how the two currencies and the cost of hedging behaved, and a period in which the Canadian dollar strengthens would favour the hedged fund.
Points that readers weigh, without a verdict:
- Hedged removes most of the currency swing, so the fund’s return sits closer to the index’s return in US dollars. It addresses one specific concern: the Canadian dollar rising before the units are sold.
- Unhedged keeps the US-dollar exposure, which can soften or deepen a fall in US stocks depending on which way the currency moves at the time.
- Cost on paper is the same or close. VSP’s MER matches VFV’s at 0.08%, and XSP and ZUE match their unhedged siblings at 0.09%.
- Size and age differ. XSP launched on May 24, 2001, ZUE on May 29, 2009 and VSP on November 2, 2012. Among the unhedged funds, HXS dates from November 30, 2010, VFV from November 2, 2012, ZSP from November 14, 2012 and XUS from April 10, 2013.
How are S&P 500 ETF dividends taxed by account type?
US companies’ dividends are subject to US withholding tax, and how much of it applies depends on the account and on whether the fund is listed in Canada or the US. This section states only what the IRS, the treaty and the CRA say; individual tax results vary, and this is not tax advice.
| Rule | What the official source says |
|---|---|
| Default US rate on dividends paid to foreign persons (IRS) | 30% |
| Canada–US treaty rate for a Canadian-resident investor | 15% |
| Retirement arrangements (treaty Article XXI) | exempt from US tax, as long as the plan is operated exclusively to provide pension, retirement or employee benefits |
| TFSA (CRA guide RC4466) | Foreign dividends could be subject to foreign withholding tax, per the CRA's TFSA guide |
| FHSA (CRA) | Foreign dividends could be subject to foreign withholding tax |
| Non-registered account (CRA line 40500) | a federal foreign tax credit (line 40500) for foreign tax paid on income you report on your Canadian return |
The IRS’s default rate on US dividends paid to a foreign person is 30%, and the Canada–US tax treaty caps it at 15% for a Canadian-resident investor. The treaty also exempts dividends earned by a pension or retirement arrangement, and the US Treasury’s technical explanations name RRSPs and RRIFs as examples. No official source checked names the TFSA or the FHSA as covered; the CRA says only that foreign dividends paid to those accounts could be subject to foreign withholding tax.
For a Canadian-listed S&P 500 ETF, the important detail is who receives the dividends. The treaty exemption is written for income the retirement arrangement itself earns. With VFV, ZSP or XUS, the US dividends are paid to the fund, not to your RRSP. Vanguard’s annual distributions table for VFV shows it: for 2025 it reports foreign income of $1.81 per unit and foreign tax paid of $0.28 per unit, which is roughly 15.7% of the foreign income. None of the issuer pages checked says that tax is refunded to holders in an RRSP or TFSA.
In a non-registered account, the CRA describes a federal foreign tax credit (line 40500) for foreign tax paid on income you report on your Canadian return. A US-listed fund such as VOO held directly in an RRSP is the situation the treaty exemption describes, which is one reason some investors with large RRSPs look at US-listed funds; the guide on how to buy US stocks and US-listed ETFs from Canada covers the W-8BEN form and conversion costs. HXS is different again: Global X lists its distributions as at the manager’s discretion, and its page gives no withholding-tax figures, so this page makes no claim about its tax treatment.
Is VOO cheaper than a Canadian S&P 500 ETF?
On the fee alone, yes: VOO’s expense ratio is 0.03%, against 0.08% for VFV. On a $10,000 holding that is a saving of about $5 a year.
The catch is currency. VOO trades in US dollars. At Wealthsimple, converting Canadian dollars from a Canadian-dollar account costs 1.5%, which on $10,000 is about $150 on the way in, and the same rate applies on the way out. At $5 a year, the fee saving would take about 30 years to cover a single conversion. Cheaper conversion methods change that maths; Norbert’s Gambit is the best-known one. The withholding-tax difference in an RRSP, described above, is the other part of the comparison, and it grows with the size of the holding.
Which S&P 500 ETFs trade in US dollars on the TSX?
Three of the four issuers list US-dollar units of their Canadian fund. BMO’s ZSP.U trades in US dollars on the TSX, with an MER of 0.09%, net assets of US$3.0 billion and an annualized distribution yield of 0.80% on its August 31, 2026 fact sheet. iShares describes XUS.U as listed and traded in US dollars and lists its exchange as the Toronto Stock Exchange; its USD class holds US$408 million and shows an MER of 0.08%. Global X offers a US-dollar-denominated version, HXS.U.
US-dollar units are the same fund as the Canadian-dollar units, bought and sold in a different currency. They are not hedged, and they do not change what the fund holds. They are useful to someone who is paid in US dollars or already holds them, because no conversion is needed to buy. Someone starting from Canadian dollars gains nothing by converting first.
How do the yields compare?
The yields the issuers publish are low and close together, and they are not measured the same way. Vanguard shows a 12-month trailing yield of 0.84% for VFV and 0.87% for VSP, both dated September 30, 2026. BMO shows an annualized distribution yield, which takes the most recent regular distribution and annualizes it: 0.78% for ZSP and 0.80% for ZUE as of October 9, 2026. iShares shows both measures: a distribution yield of 0.73% and a 12-month trailing yield of 1.08% for XUS, and 0.78% and 1.10% for XSP, as of October 8, 2026.
Because the methods differ, a higher number in one issuer’s column does not mean that fund pays more. All of these funds collect the same companies’ dividends. Yield is also not total return: VFV’s trailing yield of 0.84% is a small part of its 10-year annualized return of 15.89% to September 30, 2026.
Which S&P 500 ETF fits which investor?
Matching the published facts to situations, with no ranking implied:
- Lowest published MER, unhedged, in Canadian dollars: VFV at 0.08%. The VFV review covers its holdings, concentration in a few large technology companies and tax in more depth.
- A fund that holds the stocks itself: ZSP. The ZSP review sets it beside VFV line by line.
- Fewer, larger payouts: XUS pays twice a year (semi-annual).
- No regular distributions: HXS, at a higher published running cost.
- Currency removed: VSP, XSP or ZUE.
- US dollars already in hand: ZSP.U, XUS.U or HXS.U.
One wider question sits above all of these: whether a single-country fund is the right core holding at all. An S&P 500 ETF owns large US companies only, with no Canadian or international stocks. The comparison of VFV vs XEQT works through an S&P 500 fund against a global all-in-one fund, and the list of the best Canadian ETFs by goal covers the broader menu.
How do you buy an S&P 500 ETF in Canada?
All eight funds trade on the Toronto Stock Exchange, so the steps are the same at any self-directed brokerage: open an account, fund it in Canadian dollars (or US dollars for the .U units), search the ticker and place an order. The walkthrough on how to invest in the S&P 500 on Wealthsimple shows each screen and explains order types.
On cost, Wealthsimple charges $0 commission on Canadian-listed ETFs and lets you start from $1 with fractional shares. For readers who want an account for this, a Wealthsimple self-directed account can be opened through YieldMaple’s referral link . YieldMaple earns a referral bonus if you sign up that way, which does not change any figure on this page; the complete Wealthsimple guide covers its fees and limits, including the currency conversion fee that applies to US-listed funds.
Common mistakes when comparing S&P 500 ETFs
- Comparing management fees to MERs. They are different lines. Compare MER to MER.
- Reading HXS’s MER as its full cost. Global X also publishes a trading expense ratio of 0.49%.
- Comparing yields across issuers as if they were one measure. Trailing yield and annualized distribution yield are calculated differently.
- Buying the hedged ticker by accident. VSP and VFV, XSP and XUS, ZUE and ZSP are different funds with different returns.
- Assuming a registered account removes US withholding tax on a Canadian-listed fund. VFV’s own distribution table reports foreign tax paid inside the fund.
- Holding two S&P 500 ETFs for diversification. VFV, ZSP and XUS track the same index, so owning two adds no new companies.
How this list was put together
YieldMaple read each issuer’s own fund page or fact sheet on October 11, 2026 and recorded only what was stated there, with the exact wording saved for each figure. Tax rules come from the IRS, the Canada–US tax treaty, the US Treasury and the CRA. No issuer supplied information or paid to be listed. The list is limited to four issuers’ S&P 500 index funds; other Canadian-listed funds track the index too, including equal-weight and capped versions, and leaving one out is not a judgment about it. Net assets, yields and returns change daily, so the as-of dates matter, and the issuer’s page is the current source.