If you want the broader shortlist before choosing a specific S&P 500 fund, start with best S&P 500 ETFs in Canada.
VFV at a Glance
| Feature | Details |
|---|---|
| Full name | Vanguard S&P 500 Index ETF |
| Ticker | VFV |
| Provider | Vanguard Canada |
| Inception | November 2012 |
| MER | 0.09% |
| Underlying index | S&P 500 |
| Currency | CAD (unhedged) |
| Distribution frequency | Quarterly |
| Distribution yield | ~1.2% |
| Number of holdings | ~500 (through VOO) |
| Exchange | TSX |
Top Holdings
| Company | Weight (approx) |
|---|---|
| Apple | ~7% |
| Microsoft | ~6.5% |
| NVIDIA | ~6% |
| Amazon | ~3.8% |
| Alphabet (Google) | ~3.5% |
| Meta | ~2.5% |
| Berkshire Hathaway | ~2% |
| Broadcom | ~2% |
| Tesla | ~1.5% |
| JPMorgan Chase | ~1.3% |
Sector Breakdown
| Sector | Weight |
|---|---|
| Technology | ~32% |
| Healthcare | ~12% |
| Financials | ~13% |
| Consumer Discretionary | ~10% |
| Communication Services | ~9% |
| Industrials | ~8% |
| Consumer Staples | ~6% |
| Energy | ~4% |
| Other | ~6% |
Performance
| Period | VFV Return (CAD) | S&P 500 (USD) |
|---|---|---|
| 1 year | ~25-30%* | ~22-28%* |
| 5 years (annualized) | ~14-16%* | ~13-15%* |
| 10 years (annualized) | ~13-15%* | ~12-14%* |
VFV returns in CAD may differ from USD returns due to currency movements.
Growth of $10,000 in VFV
| Time Horizon | At 12% Return | At 14% Return |
|---|---|---|
| 5 years | $17,623 | $19,254 |
| 10 years | $31,058 | $37,072 |
| 20 years | $96,463 | $137,435 |
VFV vs Alternatives
| Feature | VFV | ZSP | VOO | VSP (hedged) |
|---|---|---|---|---|
| MER | 0.09% | 0.09% | 0.03% | 0.09% |
| Currency | CAD (unhedged) | CAD (unhedged) | USD | CAD (hedged) |
| Exchange | TSX | TSX | NYSE | TSX |
| Provider | Vanguard | BMO | Vanguard | Vanguard |
| Currency risk | ✅ Yes | ✅ Yes | Need USD | ❌ Hedged |
If you are deciding between the TSX-listed and US-listed route, compare this with tax on US ETFs in Canada and Norbert’s Gambit.
When to Choose Each
| Option | Best For |
|---|---|
| VFV | Simplicity, CAD-only accounts, most investors |
| ZSP | Same as VFV (nearly identical) |
| VOO | Already have USD, want lowest MER |
| VSP | Believe CAD will strengthen (hedging removes currency exposure) |
Currency Impact
| CAD Moves | Impact on VFV |
|---|---|
| CAD weakens vs USD | VFV returns increase (positive) |
| CAD strengthens vs USD | VFV returns decrease (negative) |
| Neutral | Returns mirror S&P 500 |
Long-term: Currency movements tend to even out over 10+ years. Most advisors recommend unhedged (VFV) for long-term holdings.
For the full currency tradeoff, see hedged vs unhedged ETFs in Canada.
Who Should Buy VFV
| Profile | Suitable? |
|---|---|
| Want S&P 500 exposure in CAD | ✅ Ideal |
| Long-term growth investor | ✅ Yes |
| Already have Canadian equities covered | ✅ Good complement |
| Want one simple ETF | ⚠️ XEQT/VEQT are more diversified |
| Want global diversification | ⚠️ VFV is US-only |
| Need income | ⚠️ Low yield (~1.2%) |
If you want one-ticket global diversification instead of a US-only sleeve, compare XEQT review and VEQT review.
VFV pros and cons
Pros:
- Extremely low MER of 0.09% for broad US equity exposure
- Tracks the S&P 500 — the world’s most-followed equity index
- Highly liquid on the TSX; tight bid-ask spreads
- No currency conversion needed — buy in CAD
- Monthly distribution option available when held in a DRIP-enabled account
Cons:
- US-only exposure — no international or Canadian stocks
- CAD-denominated, so holds an additional layer of US withholding tax compared to US-listed VOO (in an RRSP, VFV carries ~0.17% embedded WHT that VOO does not)
- Unhedged — currency movements (CAD/USD) affect returns
- High technology concentration (~32%) means sector-specific downturns hit harder
Best for: Canadian investors wanting simple, low-cost S&P 500 exposure in CAD. Ideal for TFSA where simplicity matters. For large RRSP balances, consider US-listed VOO to eliminate the embedded withholding tax.
Frequently asked questions
Is VFV a good long-term investment? For long-term passive investors, yes. The S&P 500 has historically delivered 10–12% annual total returns over long periods. VFV delivers that exposure at 0.09% MER. The main risk is concentration in US large-cap stocks — particularly in technology.
VFV vs XEQT: which should I buy? VFV is US-only (~500 stocks). XEQT is globally diversified (~9,000 stocks across 50+ countries) at 0.20% MER. XEQT is the better choice for most investors who want a one-fund portfolio. VFV is better for investors who specifically want maximum US market exposure.