ETF Comparison

VFV vs VOO

Which is Better for Canadian Investors?

Quick Verdict

Choose VFV for convenience — it trades in Canadian dollars on the TSX with zero currency conversion hassle. Choose VOO if you have a large RRSP portfolio and can use Norbert's Gambit to convert currency cheaply. VOO's 0.03% MER is the cheapest S&P 500 fund on the planet, but currency conversion costs can easily eliminate that advantage for small portfolios.

Side-by-Side Comparison

Metric	VFV	VOO
Management Expense Ratio (MER)	0.09%	0.03%
Index Tracked	S&P 500	S&P 500
Trading Currency	CAD (TSX)	USD (NYSE)
Listing Exchange	Toronto Stock Exchange	New York Stock Exchange
RRSP Withholding Tax	15% on dividends	Exempt
TFSA Withholding Tax	15% on dividends	15% on dividends
Currency Conversion Needed	No	Yes (CAD → USD)
Fund Structure	Canadian wrapper holding US ETF	Direct US fund
Distribution Frequency	Quarterly	Quarterly
AUM	~$10B CAD	~$500B+ USD

Key Differences

Total Cost of Ownership

VOO's 0.03% MER looks dramatically cheaper than VFV's 0.09%. But for Canadians, the total cost includes currency conversion. Banks charge 1.5%–2.5% for FX conversion. Even Norbert's Gambit costs ~$10–$20 per conversion in commissions and spread. For portfolios under $50,000, VFV's convenience makes it cheaper in practice.

RRSP Tax Treaty Benefit

VOO held in an RRSP is exempt from the 15% US dividend withholding tax under the Canada-US tax treaty. VFV, as a Canadian-domiciled ETF holding a US-listed fund, cannot claim this exemption — the 15% tax is deducted at the fund level before you receive distributions. On a $200K RRSP, this saves roughly $400/year with VOO.

Convenience Factor

VFV trades in Canadian dollars on the TSX. You can buy it on any Canadian brokerage with zero friction — no currency conversion, no USD settlement accounts, no Norbert's Gambit logistics. For most self-directed investors, this convenience is genuinely valuable and time-saving.

Portfolio Scale Breakpoint

The crossover point where VOO becomes cost-effective for Canadians is approximately $50,000–$100,000 in S&P 500 exposure. Below that threshold, VFV is typically cheaper after accounting for all conversion costs. Above $100K, especially in an RRSP, VOO's lower MER and tax treaty benefits create meaningful annual savings.

Best For

Beginners

VFV, without question. Beginners should not be worrying about currency conversion, Norbert's Gambit, or US brokerage accounts. Buy VFV in Canadian dollars and focus on building the habit of consistent investing.

Large RRSP Holders ($100K+)

VOO is the optimal choice. The combination of 0.03% MER and RRSP withholding tax exemption creates substantial savings at scale. Use Norbert's Gambit to convert currency cheaply and hold VOO in a USD-denominated RRSP sub-account.

TFSA Investors

VFV is better inside a TFSA. VOO does not receive withholding tax relief in TFSAs, so the only advantage would be the MER gap — which is typically offset by currency conversion costs.

Simplicity-Focused Investors

VFV wins on simplicity. If you use Wealthsimple or any commission-free Canadian brokerage, buying VFV is as easy as buying any Canadian stock. Zero currency friction, zero complexity.

Final Recommendation

Choose VFVif…

you want hassle-free S&P 500 exposure in Canadian dollars, have a portfolio under $100K in S&P 500 holdings, or invest primarily through a TFSA.

Choose VOOif…

you have a large RRSP ($100K+), can use Norbert's Gambit for cheap currency conversion, and want the absolute lowest-cost S&P 500 ETF with full withholding tax treaty benefits.

Explore Each ETF

View Profile

VFV

Vanguard S&P 500 Index ETF (Canada)