Best US Dividend ETFs for Canadians 2026
CAD-Listed (TSX)
| ETF |
Ticker |
MER |
Yield |
Focus |
| BMO US Dividend |
ZDY |
0.33% |
~2.8% |
US high dividend |
| Vanguard US Dividend Appreciation |
VGG |
0.30% |
~1.6% |
US dividend growers |
| BMO US High Dividend Covered Call |
ZWH |
0.72% |
~6.5% |
US dividend + covered call |
| iShares US High Dividend Equity (CAD) |
XHD |
0.33% |
~3.0% |
US high dividend |
USD-Listed (Requires USD Account)
| ETF |
Ticker |
MER |
Yield |
Focus |
| Vanguard High Dividend Yield |
VYM |
0.06% |
~2.8% |
US high dividend |
| Schwab US Dividend Equity |
SCHD |
0.06% |
~3.4% |
US quality dividend |
| iShares Core High Dividend |
HDV |
0.08% |
~3.5% |
US high dividend |
| Vanguard Dividend Appreciation |
VIG |
0.06% |
~1.7% |
US dividend growers |
Tax Efficiency by Account
| Account |
CAD-Listed (ZDY) |
USD-Listed (VYM) |
| RRSP |
15% WHT on dividends (one layer) |
0% WHT (treaty exempt) ✅ |
| TFSA |
15% WHT (unrecoverable) |
15% WHT (unrecoverable) |
| Non-registered |
15% WHT (foreign tax credit) |
15% WHT (foreign tax credit) |
Best strategy: Hold USD-listed US dividend ETFs (VYM/SCHD) in RRSP to eliminate withholding tax completely.
ZDY vs VYM
| Feature |
ZDY (CAD) |
VYM (USD) |
| MER |
0.33% |
0.06% |
| Currency |
CAD on TSX |
USD on NYSE |
| WHT in RRSP |
15% |
0% |
| Convenience |
✅ Trade in CAD |
Need USD |
| Total cost (RRSP) |
~0.33% MER + ~0.4% WHT drag |
0.06% MER + $0 WHT |
Who Should Buy US Dividend ETFs
| Profile |
Recommendation |
| RRSP investor wanting US income |
✅ VYM/SCHD (USD) in RRSP |
| Don’t want USD hassle |
✅ ZDY or VGG in CAD |
| Want highest yield |
✅ ZWH (covered call) ~6%+ |
| Already hold VDY (Canadian dividends) |
✅ Good US complement |