Canadian investors seeking broad exposure to the large-cap segment of the U.S. equity market often turn to S&P 500 exchange-traded funds (ETFs). These ETFs tend to replicate the performance of the S&P 500 Index, which tracks 500 of the largest publicly traded companies in the United States, spanning a very different sector allocation than Canada’s broad market.
Why the S&P 500?
The S&P 500 index is home to some of the world’s most recognized companies, many of which are global market leaders. As of May 2025, the top 10 holdings include Microsoft, Apple, NVIDIA, Alphabet, Meta, Berkshire Hathaway, Eli Lilly & Co., Broadcom, JPMorgan Chase, and Amazon, collectively representing 33.6% of the index. Although these companies represent just 2% of the total number of stocks in the index, they provide exposure to innovation, growth, and stability, all within one fund.
There are 38 S&P 500 ETF funds available in Canada, which you can find using the TMX ETF Screener in Canada. There is a range of strategies within the U.S. equity benchmark, from pure-play S&P 500 trackers to more specialized approaches, such as 2x inverse ETFs, ESG-focused funds, and those incorporating options overlays.
Recent Market Performance
According to Todd Rosenbluth1 Head of Research at TMX Vetta-Fi LLC the S&P 500 experienced a modest decline of 0.76% in April 2025, following a significant 5.75% drop in March. “This was its worst monthly performance since September 2022,” said Rosenbluth.
“The stock market sold off sharply in early April as the U.S. government announced tariffs on several countries,” Rosenbluth added. “However, as signs of potential trade agreements emerged, the market recovered much of its earlier losses.”
Despite some turbulence, investor appetite for low-cost index exposure remains strong, especially in Canada.
Leading S&P 500 ETFs in Canada
As of April 2025, there are five standout ETFs in the landscape, managing over $54 billion in combined assets. These funds are well-known for their liquidity, reliability, and competitive management fees.
Vanguard S&P 500 Index ETF (VFV)
With over $20 billion in assets VFV is the largest S&P 500 ETF in Canada. It is also a top performer on the Toronto Stock Exchange for recent price gains. According to FactSet data the fund saw $668 million in net inflows in April 2025.
The fund is provided by Vanguard Investments Canada and carries an expense ratio of 0.08%, making it one of the most affordable funds on the market.
iShares Core S&P 500 Index ETF (XUS)
Managed by BlackRock, one of the world’s largest asset managers, XUS is part of the iShares Core suite.
XUS saw $258 million in monthly netflows and carries an expense ratio of 0.10%.
Vanguard S&P 500 Index ETF (CAD-hedged) (VSP)
Another Vanguard ETF made the list. VSP is the currency-hedged version of VFV. The fund is designed to reduce the impact of USD/CAD exchange rate fluctuations while maintaining S&P 500 exposure. VSP saw $151 million in monthly flows and has an MER of 0.08%.
BMO S&P 500 Index ETF (ZSP)
With almost $17 billion in assets under management, ZSP is one of BMO’s flagship ETFs. The fund has been trading since 2012. ZSP saw monthly net flows of $185 million. ZSP carries an MER of 0.09%.
BMO S&P 500 Hedged to CAD Index ETF (ZUE)
ZUE is the hedged counterpart to ZSP, offering the same index exposure, with added currency risk mitigation. According to Facset data ZUE saw $120 million in monthly net flows.
According to BMO, ZUE has $3.32 billion in assets under management and has an expense ratio of 0.09%.
For Canadian investors, these 5 ETFs offer convenient access to U.S. markets, often with the benefit of trading in Canadian dollars. If you wish to compare your options, the TSX ETF Screener is a helpful tool, offering detailed insights across the domestic ETF universe.
1 Todd Rosenbluth, TMX Vetta-Fi, Exclusive Interview, May 5, 2025
2 Facset, S&P 500 Funds, TMX-Vetta-Fi, May 8, 2025
3 Facset, S&P 500 Funds, TMX-Vetta-Fi, May 8, 2025
4 Facset, S&P 500 Funds, TMX-Vetta-Fi, May 8, 2025
5 Facset, S&P 500 Funds, TMX-Vetta-Fi, May 8, 2025
6 Facset, S&P 500 Funds, TMX-Vetta-Fi, May 8, 2025
