Best US Equity ETFs for Canadians
How to capture the growth of the American economy from your Canadian brokerage account.
The Engine of Global Growth
While investing in Canadian stocks is great for dividends and stability, the American stock market is the undisputed engine of global growth. The US market contains the world's most dominant technology, healthcare, and consumer discretionary companies—sectors where Canada is severely lacking.
Fortunately, you don't need to convert your Canadian dollars to USD to invest in the US market. Canadian-listed ETFs trade on the TSX in Canadian dollars but hold US stocks.
Top S&P 500 ETFs in Canada
The S&P 500 tracks the 500 largest publicly traded companies in the United States and is considered the premier benchmark for American equity.
1. VFV - Vanguard S&P 500 Index ETF
VFV is a heavyweight in the Canadian ETF space. It provides simple, unhedged exposure to the S&P 500.
- MER: ~0.09%
- Currency Strategy: Unhedged (Exposed to CAD/USD fluctuations)
- Best for: Core, long-term US equity exposure.
2. ZSP - BMO S&P 500 Index ETF
ZSP is BMO's equivalent to VFV. Functionally, there is virtually no difference between the two. ZSP holds the underlying stocks directly, whereas VFV holds Vanguard's US-listed ETF (VOO) internally.
- MER: ~0.09%
- Currency Strategy: Unhedged
- Best for: Investors who prefer BMO products or want slightly different internal fund structuring.
Total US Market ETFs
If you want exposure beyond the top 500 companies to include mid-cap and small-cap US stocks, a total market ETF is the way to go.
3. XUU - iShares Core S&P U.S. Total Market Index ETF
XUU tracks the entire investable US equity market, giving you exposure to thousands of companies, not just the massive tech giants.
- MER: ~0.07%
- Holdings: ~3,600 US companies
- Best for: Maximum diversification across all sizes of US businesses.
The Big Debate: Hedged vs. Unhedged
When you buy a US ETF on the TSX, you face currency risk. If the US dollar strengthens against the Canadian dollar, your unhedged ETF (like VFV) goes up in value, even if the underlying stocks didn't move. If the Canadian dollar strengthens, your unhedged ETF loses value.
To prevent this, you can buy Hedged ETFs (like VSP, the hedged version of ZSP). These funds use complex financial instruments to lock in the exchange rate, ensuring the ETF's return exactly matches the S&P 500's return, regardless of currency swings.
Which should you choose? Most financial planners recommend unhedged ETFs for long-term investors. Hedging costs money (creating an internal drag on the fund), and over decades, currency fluctuations tend to act as a natural diversifier rather than a risk that needs to be eliminated.
Explore More
Understand how US equities fit into your overall strategy:
- Back to the Best Canadian ETFs in 2026 Master Guide
- Explore Best International ETFs to complete your global portfolio
- Compare Canadian Equity ETFs
Frequently Asked Questions
What is the best S&P 500 ETF in Canada?
VFV (Vanguard) and ZSP (BMO) are the two most popular S&P 500 ETFs in Canada. They have nearly identical MERs and track the same index, making either an excellent choice.
Should I buy hedged or unhedged US ETFs?
For most long-term investors, unhedged ETFs (like VFV) are preferred. Currency fluctuations tend to smooth out over decades, and hedging adds an internal cost drag to the fund.
Why do Canadians need US Equity ETFs?
The Canadian market is heavily concentrated in financials and energy and lacks meaningful exposure to global technology and healthcare leaders, which the US market provides.