If you want the broader shortlist before comparing these approaches directly, start with best ETFs in Canada and best S&P 500 ETFs in Canada.
Quick Comparison
| Feature |
VFV |
VOO |
VGRO |
| Exchange |
TSX (CAD) |
NYSE (USD) |
TSX (CAD) |
| MER |
0.09% |
0.03% |
0.24% |
| Holdings |
S&P 500 |
S&P 500 |
Global stocks + bonds |
| Currency |
Canadian |
US |
Canadian |
| Best for |
TFSA, taxable |
RRSP (maybe) |
One-fund portfolio |
For the product-level breakdowns first, compare VFV review and VGRO review.
What Each ETF Invests In
VFV (Vanguard S&P 500 Index ETF)
| Detail |
Information |
| Index |
S&P 500 |
| Holdings |
~500 US large-cap stocks |
| Top holdings |
Apple, Microsoft, Amazon, Nvidia |
| Currency |
Trades in CAD, unhedged USD exposure |
| Distributions |
Quarterly |
| MER |
0.09% |
VOO (Vanguard S&P 500 ETF)
| Detail |
Information |
| Index |
S&P 500 |
| Holdings |
~500 US large-cap stocks |
| Top holdings |
Same as VFV |
| Currency |
Trades in USD |
| Distributions |
Quarterly |
| MER |
0.03% |
VGRO (Vanguard Growth ETF Portfolio)
| Detail |
Information |
| Strategy |
80% stocks, 20% bonds |
| Holdings |
7 underlying Vanguard ETFs |
| Geographic mix |
~45% US, ~30% Canada, ~25% International |
| Currency |
CAD, globally diversified |
| Distributions |
Quarterly |
| MER |
0.24% |
True Cost Comparison
MER Is Not the Full Picture
| ETF |
Stated MER |
Foreign Withholding Tax |
Currency Cost |
Total Annual Cost |
| VFV (TFSA) |
0.09% |
~0.30% |
$0 |
~0.39% |
| VFV (RRSP) |
0.09% |
~0.30% |
$0 |
~0.39% |
| VFV (taxable) |
0.09% |
~0.30% |
$0 |
~0.39% |
| VOO (RRSP) |
0.03% |
0% |
~0.50%* |
~0.53%* |
| VOO (TFSA) |
0.03% |
15% on dividends |
~0.50%* |
~0.75%* |
| VGRO |
0.24% |
~0.15% |
$0 |
~0.39% |
*Currency conversion costs vary; typically 1-2.5% round trip at banks, less with Norbert’s Gambit.
That currency-cost tradeoff is why Norbert’s Gambit and tax on US ETFs in Canada matter before choosing VOO.
Key Insight
Despite VOO’s lower MER, VFV often has similar or lower total costs for Canadian investors due to:
- No currency conversion needed
- Simpler trading
Historical Returns (CAD)
| Period |
VFV |
VOO (in CAD) |
VGRO |
| 1 Year |
+28.5% |
+28.5% |
+18.2% |
| 3 Year (annualized) |
+12.1% |
+12.1% |
+6.8% |
| 5 Year (annualized) |
+15.8% |
+15.8% |
+9.4% |
| 10 Year (annualized) |
+14.2% |
+14.2% |
N/A |
VFV and VOO return the same thing (S&P 500), adjusted for currency. VGRO is different (diversified, bonds).
Why Returns Differ
| Factor |
VFV/VOO |
VGRO |
| US exposure |
100% |
~45% |
| International |
0% |
~25% |
| Canada |
0% |
~10% |
| Bonds |
0% |
20% |
VGRO is designed for lower volatility, not maximum returns.
Which Is Best by Account Type?
TFSA
| Choice |
Verdict |
| VFV |
✅ Best choice |
| VOO |
❌ Currency conversion costs, withholding tax |
| VGRO |
✅ Good for diversification |
In TFSA, both VFV (Canadian ETF holding US stocks) and VOO lose 15% of dividends to US withholding tax. VFV is simpler.
RRSP
| Choice |
Verdict |
| VFV |
✅ Simple, no currency hassle |
| VOO |
⚠️ Better withholding tax, but currency costs |
| VGRO |
✅ Good for hands-off approach |
VOO in an RRSP avoids US withholding tax (tax treaty), but currency conversion costs often exceed the savings.
VOO makes sense if: You use Norbert’s Gambit and have a large portfolio ($100k+).
Taxable Account
| Choice |
Verdict |
| VFV |
✅ Simple, foreign tax credit available |
| VOO |
⚠️ Same tax situation, but currency hassle |
| VGRO |
✅ Good for simplicity |
US dividends are taxed regardless. VFV is simpler.
Detailed Breakdown
VFV Pros & Cons
| Pros |
Cons |
| Trades in CAD |
Higher MER than VOO |
| No currency conversion |
Embedded withholding tax |
| Simple to buy/sell |
Only US exposure |
| Good liquidity |
No bonds |
VOO Pros & Cons
| Pros |
Cons |
| Lowest MER (0.03%) |
Trades in USD |
| No withholding tax in RRSP |
Currency conversion needed |
| Massive liquidity |
More complex |
| US listed |
Tax reporting can be harder |
VGRO Pros & Cons
| Pros |
Cons |
| All-in-one diversification |
Higher MER |
| Automatic rebalancing |
20% bonds may drag returns |
| Global exposure |
Less aggressive than 100% stocks |
| Simple |
Less US concentration |
Decision Framework
Choose VFV If:
- You want pure S&P 500 exposure
- You prefer simplicity (CAD trading)
- Any account type
- Don’t want to deal with currency
Choose VOO If:
- You have a large RRSP ($100k+)
- You’ll use Norbert’s Gambit for currency
- You want the absolute lowest MER
- You’re comfortable with USD
Choose VGRO If:
- You want one-fund portfolio
- You prefer global diversification
- You want automatic rebalancing
- Lower volatility is important
- You don’t want to pick individual ETFs
If you are really deciding between one-fund simplicity and a custom build, compare best all-in-one ETFs in Canada and couch potato portfolio.
Alternatives to Consider
| If You Want |
Consider |
| S&P 500 CAD-hedged |
VSP (0.09% MER) |
| S&P 500 lower cost |
XUS (0.10% MER) |
| All-in-one aggressive |
VEQT (100% stocks) |
| All-in-one conservative |
VBAL (60/40 stocks/bonds) |
| Total US market |
VUN (more than S&P 500) |
Sample Portfolio Approaches
Simple: Just VGRO
Instant diversification, automatic rebalancing.
S&P 500 + Canada + Bonds
| ETF |
Allocation |
| VFV |
60% |
| VCN |
20% |
| VAB |
20% |
Pure Growth (100% Equity)
| ETF |
Allocation |
| VFV |
50% |
| VIU |
30% |
| VCN |
20% |
Use asset allocation by age before copying any of these sample mixes.