ETF Comparison

VFV vs ZSP

Which is Better for Canadian Investors?

Quick Verdict

VFV and ZSP are functionally identical — same index, same fee, same currency exposure. Choose VFV if you prefer Vanguard's brand and tracking methodology. Choose ZSP if you bank with BMO or prefer BMO's fund family. You genuinely cannot go wrong with either one.

Side-by-Side Comparison

Metric	VFV	ZSP
Management Expense Ratio (MER)	0.09%	0.09%
Index Tracked	S&P 500	S&P 500
Number of Holdings	503	503
Assets Under Management	$10B+	$12B+
Average Daily Volume	Very High	Very High
Currency Hedging	Unhedged	Unhedged
Distribution Frequency	Quarterly	Quarterly
Listing Exchange	TSX	TSX
Trading Currency	CAD	CAD
Eligible Accounts	TFSA, RRSP, FHSA, RESP	TFSA, RRSP, FHSA, RESP

Key Differences

Tracking Methodology

VFV uses a sampling strategy to replicate the S&P 500, while ZSP uses full replication. In practice, both achieve near-identical tracking error. The difference is academic rather than meaningful to your returns.

Fund Size & Liquidity

ZSP has slightly higher AUM (~$12B vs ~$10B), which can translate to marginally tighter bid-ask spreads on the TSX. However, both funds are among the most liquid ETFs in Canada, and typical spread differences are fractions of a cent.

Fund Provider Ecosystem

If you already hold other Vanguard ETFs (VCN, VIU, VEQT), VFV fits naturally into your portfolio for consolidated statements and tax reporting. Similarly, if you use BMO InvestorLine, ZSP integrates seamlessly into the BMO ecosystem.

Securities Lending Revenue

Both funds engage in securities lending to offset costs. The revenue from this activity can slightly reduce the effective cost below the stated 0.09% MER. Historically, both funds have been equally competitive on net tracking difference.

Best For

Beginners

Pick whichever your brokerage makes easiest to buy. On Wealthsimple, both are commission-free. On Questrade, both are commission-free to buy. There is no wrong choice.

Long-Term TFSA & RRSP Investors

Either VFV or ZSP is an exceptional core US equity holding for registered accounts. The S&P 500 has historically returned ~10% annually over rolling 20-year periods. Just pick one and keep buying.

Dividend-Focused Investors

Both deliver the S&P 500's dividend yield (~1.3%). For higher income, look at dedicated Canadian dividend ETFs instead. VFV and ZSP are growth vehicles first.

Growth-Focused Investors

Both are perfect growth engines. The S&P 500 includes mega-cap tech leaders like Apple, Microsoft, Nvidia, and Amazon. Either fund gives you full exposure to US innovation at rock-bottom cost.

Final Recommendation

Choose VFVif…

you prefer Vanguard's brand, already hold other Vanguard products, or want the most well-known S&P 500 ETF on the TSX.

Choose ZSPif…

you bank with BMO, prefer BMO's fund family, or want the ETF with slightly higher total AUM and trading volume.

Explore Each ETF

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VFV

Vanguard S&P 500 Index ETF