Top Canadian S&P 500 ETFs For DIY Investors
Index investing has become a cornerstone strategy for long-term investors seeking broad market exposure with low fees.
Rather than trying to beat the market, index investors aim to match its performance—often with better results over time.
One of the most popular benchmarks in the world is the S&P 500, which tracks 500 of the largest U.S. companies. This approach has gained strong support from legendary investors like Warren Buffett, who famously stated: “My regular recommendation has been a low-cost S&P 500 Index fund.”
For Canadian investors, there are several ETF options that offer access to the S&P 500 with varying fees, structures, and tax considerations.
This article isn’t financial advice or meant to encourage investing in S&P 500 ETFs as part of your investing strategy. Everyone has a different risk tolerance and different financial goals. Historical returns are not indicative of future returns. It’s important to consult with a qualified financial advisor and do your own research to decide what’s best for you. Data is accurate as of July 2025 but is subject to change, always verify with your own research.
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The Largest S&P 500 ETF: $VFV By Vanguard
With total assets of $22.19 billion, VFV tops the charts as the largest S&P 500 ETF in Canada.
The MER of $VFV is 0.09% which is the annual cost charged to investors in order to invest in the fund. This small fee pays for the fund manager and operating expenses that are incurred to provide the fund.
On a $100,000 investment, a 0.09% MER means an investor will incur a minuscule $90 annual fee. When compared to the average Canadian mutual fund fee of 1.64%, that same $100,000 amount, would incur a $1640 fee!
When compounded over time, fee’s could be the difference of hundreds of thousands of dollars so it’s important to carefully consider the fee’s of your investment products.
VFV is an unhedged ETF which gives investors exposure to fluctuations to the USD-CAD exchange rate.
Unhedged VS Hedged ETFs
The S&P 500 Index is a US based index so all the companies trade on US exchanges in USD. This means that Canadian S&P ETFs are exposed to currency risk between the CAD/USD exchange rate.
Unhedged ETFs
ETFS such as $VFV are unhedged which means investors have exposure to both the index and the US dollar. If the US dollar were to appreciate over the Canadian dollar, investors in unhedged ETFs would have increased returns because they are both long the US dollar and the index. The inverse is also true, where if the US dollar were to depreciate against the Canadian dollar, this would eat into investor returns.
Hedged ETFs
In contrast, hedged ETFs aim to neutralize currency risk by using derivatives to offset potential losses or gains caused by exchange rate movements. This allows your returns to closely mirror the S&P 500’s performance in its native currency (USD), independent of fluctuations in the USD-CAD exchange rate. In some ETF’s, the use of hedging may increase fees and costs for investors but in this list the MER’s are all identical for unhedged and hedged versions.
$VSP By Vanguard
This is Vanguard’s hedged version of $VFV, eliminating and USD/CAD currency exchange fluctuations.
MER: 0.09%
Net Assets: $4.36 billion
$ZSP By Bank Of Montreal
A familiar big bank unhedged offering.
MER: 0.09%
Net Assets: $18.16 billion
$ZUE By Bank of Montreal
The hedged version of $ZSP.
MER: 0.09%
Net Assets: $3.65 billion
$XUS By iShares Blackrock
Blackrock’s unhedged S&P 500 ETF offering.
MER: 0.09%
Net Assets: $9.68 billion
$XSP By iShares Blackrock
Blackrock’s hedged S&P 500 ETF offering.
MER: 0.09%
Net Assets: $12.1 billion
Quick Comparison Table
| Ticker | Issuing Company | Currency Hedging? | MER | Net Assets |
|---|---|---|---|---|
| $VFV | Vanguard | Unhedged | 0.09% | $22.19 billion |
| $VSP | Vanguard | Hedged | 0.09% | $4.36 billion |
| $ZSP | Bank Of Montreal | Unhedged | 0.09% | $18.16 billion |
| $ZUE | Bank Of Montreal | Hedged | 0.09% | $3.65 billion |
| $XUS | iShares Blackrock | Unhedged | 0.09% | $9.68 billion |
| $XSP | iShares Blackrock | Hedged | 0.09% | $12.1 billion |
Whether you’re just starting out with your investing journey or looking to simplify your portfolio, low fee index investing is a time tested way to build long term wealth. With several great options available to Canadian investors, the choice is yours when finding the one that fits your needs.
If you’re ready to start investing, check out our top-rated Canadian brokers! These platforms make it easy to buy S&P 500 ETFs and many offer commission free trades.
Disclaimers
The content in this article is for informational and educational purposes only and should not be considered financial, investment, or tax advice. Always do your own research or consult with a qualified financial advisor before making any investment decisions.
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All information in this article is accurate to the best of our knowledge at the time of publication. However, brokerage features, fees, promotions, and platform offerings may change over time. Please visit the official broker websites for the most up-to-date details before making a decision