Best Canadian S&P 500 ETFs — VFV vs ZSP on TSX

VFV (Vanguard S&P 500 Index ETF) and ZSP (BMO S&P 500 Index ETF) are Canadian-listed ETFs that track the S&P 500 Index, giving investors exposure to the top 500 US companies.

Both VFV and ZSP track the same S&P 500 Index and have identical MER of 0.09%. The main difference is issuer (Vanguard vs BMO) and slightly higher assets under management for ZSP.

Performance is nearly identical. VFV is preferred for Vanguard’s structure and popularity, while ZSP may appeal due to slightly higher liquidity and AUM.

Both ETFs have a management expense ratio (MER) of 0.09%, making them low-cost options for Canadian investors.

Yes, both ETFs distribute dividends, typically on a quarterly basis, reflecting income from the underlying S&P 500 companies.

Both VFV and ZSP trade in Canadian dollars (CAD) on the Toronto Stock Exchange, making them convenient for Canadian investors.

VOO is a US-listed S&P 500 ETF by Vanguard with a lower expense ratio of 0.03%, but it trades in USD, requiring currency conversion for Canadian investors.

VOO is cheaper in terms of fees, but VFV and ZSP are often more convenient for Canadians due to CAD trading and no currency conversion.

No, both ETFs are unhedged, meaning their returns are affected by fluctuations between the Canadian dollar and US dollar.

Yes, both ETFs are excellent long-term investments as they provide exposure to the US economy and historically strong S&P 500 growth.

They include top US companies such as Apple, Microsoft, Amazon, NVIDIA, Alphabet, and Meta.

Performance differences are minimal and usually come down to tracking error and minor structural differences.

The minimum investment is the price of one ETF unit, making both accessible to small and beginner investors.

Both ETFs are highly liquid, but ZSP has slightly higher AUM, which may provide marginally better liquidity.

Yes, both are beginner-friendly ETFs due to diversification, low cost, and simple exposure to the US stock market.

Yes, both ETFs aim to replicate the full S&P 500 Index by holding all or most of its constituent companies.

Risks include market volatility, US economic downturns, and currency fluctuations between CAD and USD.

Yes, international investors can access these ETFs through brokers that offer trading on the Toronto Stock Exchange.

There is no need to hold both, as they track the same index. Choosing either VFV or ZSP is sufficient for S&P 500 exposure.

A long-term strategy with regular investments (dollar-cost averaging) is considered the most effective approach for building wealth.