If you want the broader shortlist before choosing a specific S&P 500 fund, start with best S&P 500 ETFs in Canada.
ZSP is BMO’s S&P 500 ETF — the simplest way to own all 500 of America’s largest companies in a single CAD-denominated purchase on the TSX. At 0.09% MER, it’s tied with Vanguard’s VFV as the cheapest S&P 500 ETF available in Canada, and it carries $13 billion+ in assets. The S&P 500 has been the world’s most important equity benchmark for decades, and holding ZSP in a registered account like an RRSP (where US dividends avoid the 15% withholding tax) is one of the most cost-effective ways for Canadians to get US equity exposure.
ZSP at a Glance
| Feature | Details |
|---|---|
| Full name | BMO S&P 500 Index ETF |
| Ticker | ZSP |
| Provider | BMO Global Asset Management |
| Inception | November 2012 |
| MER | 0.09% |
| Currency | CAD (unhedged) |
| Distribution frequency | Quarterly |
| Distribution yield | ~1.2% |
| Holdings | ~500 (S&P 500) |
| AUM | $13B+ |
| Exchange | TSX |
Top Holdings
| Company | Weight |
|---|---|
| Apple | ~7% |
| Microsoft | ~6.5% |
| NVIDIA | ~6% |
| Amazon | ~3.8% |
| Alphabet | ~3.5% |
| Meta | ~2.5% |
| Berkshire Hathaway | ~2% |
| Broadcom | ~2% |
| Tesla | ~1.5% |
| JPMorgan | ~1.3% |
ZSP vs VFV vs VOO
| Feature | ZSP | VFV | VOO |
|---|---|---|---|
| MER | 0.09% | 0.09% | 0.03% |
| Exchange | TSX (CAD) | TSX (CAD) | NYSE (USD) |
| Currency | Unhedged | Unhedged | USD |
| Provider | BMO | Vanguard | Vanguard |
| AUM | $13B+ | $9B+ | $500B+ (USD) |
| Performance | Identical | Identical | Slightly higher (lower MER) |
If you are deciding between the TSX-listed and US-listed route, compare tax on US ETFs in Canada and Norbert’s Gambit.
Who Should Buy ZSP
| Profile | Suitable? |
|---|---|
| Want S&P 500 in CAD | ✅ Ideal |
| Prefer BMO over Vanguard | ✅ Equivalent to VFV |
| Want cheapest option possible | ⚠️ VOO is 0.03% in USD |
| Want global diversification | ⚠️ US-only — consider XEQT |
Account placement for Canadian investors
ZSP can work in both TFSA and RRSP, but account choice changes tax and planning outcomes.
| Account | Typical reason to hold ZSP |
|---|---|
| TFSA | Simplicity, tax-free growth, flexible withdrawals |
| RRSP | Fits retirement-focused US equity allocation |
| Non-registered | Use after registered room is filled |
If you are deciding where to put new money first, compare TFSA vs RRSP for beginners and review available room before you buy.
S&P 500 concentration risk
The S&P 500 is diversified across 500 companies, but it is still concentrated in the US and heavily weighted to mega-cap technology.
| Risk factor | Why it matters |
|---|---|
| Country concentration | Portfolio tied to US market cycle |
| Sector concentration | Large weight in tech and communication services |
| Currency exposure | CAD/USD moves affect CAD returns |
If this concentration is too high for your comfort level, pair ZSP with broader funds such as XEQT or a global all-in-one ETF.
How to use ZSP in a broader portfolio
Common implementation approach:
- Set a target US-equity weight
- Use ZSP for that sleeve consistently
- Rebalance quarterly or semi-annually
- Avoid style drifting from long-term plan
For investors comparing one-ticket portfolios to a custom ETF mix, see best all-in-one ETFs in Canada and how to buy ETFs in Canada.
If you want a direct side-by-side on the Vanguard versions of this choice, use VFV vs VOO vs VGRO.
The Bottom Line
ZSP and VFV are functionally identical — pick whichever your brokerage makes easier to buy. If you want the absolute lowest cost and already hold USD, VOO at 0.03% saves you 0.06% per year. For most Canadians buying in registered accounts, the convenience of ZSP’s CAD trading on the TSX outweighs VOO’s tiny MER advantage. Keep in mind that the S&P 500 is US-only — if you want a single all-in-one solution that includes Canadian, international, and emerging market exposure, an all-in-one ETF like XEQT is a more complete portfolio in one fund. If you are unsure how large a US-only sleeve should be, start with asset allocation by age.
ZSP pros and cons
Pros:
- 0.09% MER — tied with VFV as cheapest CAD S&P 500 ETF
- $13B+ AUM — one of the most liquid ETFs on the TSX
- Quarterly distributions
- BMO brand — widely available at all Canadian brokerages
- Tracks the S&P 500 directly — largest, most transparent US equity index
Cons:
- US-only — no Canada, international, or emerging market exposure
- Unhedged — CAD/USD moves affect returns in both directions
- 0.09% MER still 3× higher than buying VOO directly in USD (0.03%)
- Technology-heavy (~32%) — sector concentration in a single country
Best for: Canadian investors who want simple, low-cost S&P 500 exposure without dealing with US dollar accounts or currency conversion. For large RRSP balances (>$50,000 US exposure), buying US-listed VOO directly via Norbert’s Gambit saves additional fees over time.
Frequently asked questions
ZSP vs VFV: which should I buy? They are nearly identical. Both track the S&P 500 at 0.09% MER, are unhedged, and trade on the TSX in CAD. VFV is from Vanguard; ZSP is from BMO. Either is a fine choice — choose based on which you can buy with $0 commission at your broker.
Should I hold ZSP in a TFSA or RRSP? RRSP is slightly more efficient due to the Canada-US tax treaty (reduces the embedded US withholding tax on dividends). For the first home buying account, a TFSA is simpler but carries a small withholding drag (~0.17%). The difference is minimal on small balances.