ZSP is BMO’s Canadian-listed S&P 500 ETF. It gives exposure to large US companies while trading in Canadian dollars. It is unhedged: CAD trading does not remove the effect of US-dollar exchange-rate changes.
The provider and fund structure differ; the S&P 500 exposure and unhedged currency exposure are similar. Both can overlap with the US stocks already inside an all-equity portfolio ETF.
Open the ZSP profile · Compare the VFV profile · Understand overlap with XEQT and VEQT
ZSP is the BMO S&P 500 Index ETF, listed on the Toronto Stock Exchange and priced in Canadian dollars. It tracks the S&P 500 — the benchmark of 500 large-cap US companies that covers roughly 80% of the US equity market by capitalization. ZSP holds the underlying US equities directly and passes dividends through to Canadian unitholders quarterly.
Because it trades on the TSX in CAD, you do not need a USD account to buy ZSP. That convenience makes it a go-to choice for investors at Wealthsimple Trade, Questrade, or Disnat who want broad US exposure without managing currency conversion.
Both ZSP and VFV track the S&P 500, and both are unhedged — meaning your return in Canadian dollars will fluctuate with the CAD/USD exchange rate. At first glance they look identical. The practical differences come down to a few details:
| Feature | ZSP (BMO) | VFV (Vanguard) |
|---|---|---|
| Index tracked | S&P 500 | S&P 500 |
| Currency | CAD (unhedged) | CAD (unhedged) |
| Structure | Direct holdings | Wrapper over VOO (US) |
| Dividend frequency | Quarterly | Quarterly |
| MER | Low — check current rate | Low — check current rate |
| Liquidity | High | High |
RRSP tax clarification: ZSP’s direct US-stock holdings do not create an RRSP withholding-tax exemption. Both ZSP and VFV are Canadian-listed ETFs, so US dividend withholding still applies inside the fund. The exemption generally concerns US-listed ETFs or US stocks held directly in an RRSP/RRIF. See BlackRock’s withholding-tax guide.
Fund structure is one comparison point, not evidence that ZSP has an RRSP tax advantage. Current expenses, tracking difference, trading costs and portfolio overlap also matter.
Canadian-dollar returns reflect both the holdings and CAD/USD movements.
Currency hedging aims to reduce exchange-rate effects; it has costs and is not exact.
BMO also offers ZUE (BMO S&P 500 Hedged to CAD Index ETF), which tracks the same index but uses currency forward contracts to reduce the effect of CAD/USD exchange-rate movements. This means:
Hedging changes currency exposure rather than guaranteeing a better return. Its effect depends on exchange-rate movements, hedge costs and tracking over the period measured.
Neither approach is universally preferable. Compare hedged and unhedged returns over the same dates and in the same currency, and distinguish an exchange-rate view from the underlying equity exposure.
ZSP tracks the S&P 500, which means you are concentrated in US equities — roughly 100% geographic exposure to the United States. Within that, the sector makeup of the S&P 500 as of mid-2026 is heavily weighted toward:
If you hold ZSP alongside a Canadian equity ETF, your total portfolio's geographic and sector exposure may look very different from what the individual fund labels suggest. For example, pairing ZSP with a Canadian bank-heavy ETF creates significant financial-sector concentration. This is exactly why understanding your ETF's geographic exposure matters — and why simply reading a fund's name is not enough.
WealthWise automatically decomposes ETFs like ZSP into their underlying sector weights and maps your real geographic exposure across your whole portfolio, so you can see actual concentration, not just fund labels.
| Account type | US withholding tax on dividends | Capital gains treatment |
|---|---|---|
| RRSP | Still applies inside this Canadian-listed ETF | Capital gains compound tax-deferred |
| TFSA | IRS still withholds 15% on US dividends regardless of account type | Growth and Canadian tax on capital gains are sheltered |
| Non-registered | Taxed as foreign income; foreign tax credit available for withheld amounts | Taxed at your marginal rate on the inclusion amount |
Where you hold ZSP changes your after-tax outcome:
Account placement depends on contribution room, withdrawals, income and the whole portfolio. Do not choose an account solely from a withholding-tax comparison; verify your tax treatment with a qualified tax professional.
ZSP works well as a core US equity holding in several portfolio styles:
If you already hold XEQT or VEQT (all-in-one ETFs), you already have S&P 500 exposure built in — adding ZSP on top creates unintended overlap and overweights US large-cap. Check your ETF overlap before stacking similar funds.
One of the most useful things you can do as a DIY investor is compare your actual portfolio return against the S&P 500 — not because you should always match it, but because understanding the gap (positive or negative) tells you whether your active tilts, dividend focus, or Canadian home bias are adding or costing value.
When comparing portfolio performance with the S&P 500, use the same dates and currency and account for deposits and withdrawals. Our benchmarking guide explains why cash flows and different market exposures affect the comparison.
No. ZSP is unhedged, so CAD/USD movements affect its Canadian-dollar return. BMO’s ZUE aims to reduce that currency exposure through hedging, which has costs and does not remove all risk.
Both track the S&P 500 unhedged in CAD. ZSP holds US stocks directly; VFV holds VOO. Neither Canadian-listed structure provides an RRSP exemption from US dividend withholding.
Yes. Growth and Canadian taxes on capital gains are sheltered. However, the IRS still withholds 15% on US dividends regardless of account type. Since S&P 500 ETF yields are modest, this cost is relatively small for most investors.
Yes, ZSP distributes dividends quarterly, passed through from the underlying S&P 500 companies. The yield is typically modest since the S&P 500 skews toward growth companies with low payout ratios.
XEQT already contains US large-cap stocks. Adding ZSP increases that exposure and overlaps with existing holdings. Whether that matches a desired allocation depends on the whole portfolio; this article does not recommend a purchase.
Explore ZSP holdings and fees →Editorial update September 8, 2026: clarified the RRSP withholding treatment using BlackRock’s reference guide. Confirm current fund data with BMO; tax treatment depends on individual circumstances.
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