WealthVFV vs ZSP: two Canadian ETFs for the same S&P 500
VFV and ZSP are unhedged Canadian-dollar ETFs that seek to track the S&P 500. Their economic exposure and published MER are very similar. For many investors, the practical difference comes more from brokerage support, bid-ask spread and execution than from holdings.
At a glance
| ETF | Exposure | Published fee | Possible role | Listing |
|---|---|---|---|---|
| VFV | S&P 500, unhedged | 0.09% | Large U.S. companies | TSX / CAD |
| ZSP | S&P 500, unhedged | 0.09% | Large U.S. companies | TSX / CAD |
The real difference between these ETFs
Same index
Both target 500 large U.S. companies. Weights change with the index; these are not two different investment theses.
CAD does not mean hedged
Units trade in Canadian dollars, but value remains exposed to U.S. securities and the U.S. dollar. Trading currency does not remove currency exposure.
Execution and tracking
Compare bid-ask spread, volume, tracking difference and broker features when you trade.
What each structure changes
VFV uses Vanguard’s structure to provide S&P 500 exposure from the TSX. ZSP pursues the same objective at BMO. Both concentrate the portfolio in large U.S. companies and inherit the index’s sector weights.
Owning VFV and ZSP together does not double diversification. It mostly duplicates the same exposure. An investor seeking diversification should examine what is missing: Canada, smaller companies, markets outside the United States or fixed income.
Accounts, tax and implementation
Inside a TFSA or RRSP, both remain Canadian-listed funds holding U.S. exposure. Withholding details depend on structure and account. Do not choose from a simplified tax rule alone; verify the documentation and your circumstances.
Overlap and concentration risk
The main risk is not the Vanguard or BMO logo. It is concentration in one country, one index and its largest companies. A portfolio already heavy in U.S. equities can quietly compound that concentration.
Diversification must be measured through underlying securities, sectors, countries, currencies and asset classes. Two different symbols can represent the same economic bet.
A neutral decision framework
Compare real cost
MER, bid-ask spread, commissions and execution quality work together.
View the whole portfolio
Measure direct S&P 500 exposure and the exposure hidden inside all-in-one ETFs.
Model the impact of published fees
This projection isolates fees to show their order of magnitude. It does not predict actual returns or include tax, tracking difference or trading costs.
Methodology
We compared mandate, index, allocation, trading currency, published fee measure and structural risks using provider pages. Data was checked July 18, 2026. Fast-changing current returns and distributions are not used to name a winner.
Official sources
- Vanguard · VFV — Official fund document checked July 18, 2026
- BMO · ZSP — Official fund document checked July 18, 2026
Frequently asked questions
Are VFV and ZSP currency hedged?
No. They trade in CAD, but their economic exposure to the U.S. dollar remains.
Is there a benefit to holding both?
Usually little for diversification because they track the same index.
Which has the lower MER?
The official documents reviewed show 0.09% for both. Verify current figures.