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VFV ETF Review (2026): Vanguard S&P 500 Index ETF in Canadian Dollars

Updated

VFV is Vanguard’s S&P 500 Index ETF: it trades on the TSX in Canadian dollars and gets its US large-company stocks mainly by holding Vanguard’s US-domiciled S&P 500 ETF. For today’s price and past performance, see Vanguard’s VFV page; this page shows neither, because past results can’t tell you how a fund will do next. It explains what VFV holds, what it costs, what its payouts are made of and what its structure means for tax, and it doesn’t recommend the fund.

On this page: holdings · costs · distributions · accounts and withholding tax · rivals · limits Compare: VFV in the S&P 500 ETF table · VFV vs ZSP vs XUS · ZSP vs XSP · VFV vs VOO

What does VFV hold?

VFV aims to follow the S&P 500, an index weighted by company size that is meant to capture the returns of large US stocks. Rather than buying the stocks itself, it invests mostly in the US-domiciled Vanguard S&P 500 ETF (VOO), which holds the index’s companies in full. Vanguard’s fact sheet counts 505 stocks, a figure it gives for that US fund.

VFV’s own ETF Facts lists its ten largest investments as of May 31, 2026:

  1. NVIDIA Corp: 7.88%
  2. Apple Inc: 7.04%
  3. Alphabet Inc: 6.11%
  4. Microsoft Corp: 5.14%
  5. Amazon.com Inc: 4.06%
  6. Broadcom Inc: 3.25%
  7. Meta Platforms Inc: 2.13%
  8. Tesla Inc: 1.88%
  9. Micron Technology Inc: 1.68%
  10. Eli Lilly & Co: 1.35%

Together these ten made up 40.52% of the fund. The fact sheet prints its own top-10 list, but it is the US fund’s, so the two lists can differ a little, and both change over time.

By sector (same date), information technology is the largest at 38.56%, followed by financials at 11.30% and communication services at 10.39%. Then come consumer discretionary (9.73%), health care (8.30%), industrials (8.29%), consumer staples (4.55%), energy (3.13%), utilities (2.11%), materials (1.83%) and real estate (1.81%).

Currency. VFV is priced in Canadian dollars, but what it owns is priced in US dollars, and Vanguard sells a separate CAD-hedged version of the same S&P 500 fund (VSP). With an unhedged fund like VFV, a falling US dollar lowers the Canadian-dollar value of the US stocks, and a rising one raises it. Our page on US-listed and Canadian-listed ETFs covers hedging.

What does VFV cost?

Vanguard lists a management fee of 0.08% and an MER of 0.08% as of June 30, 2026. Holding VOO doesn’t add a second layer of management fees: Vanguard says there is “no duplication of management fees” between VFV and the fund it invests in. The MER isn’t billed to you; it comes out of the fund and lowers its return. The ETF Facts shows a trading expense ratio of 0.00% and no trailing commission, though your broker may charge a commission when you buy or sell.

VFV started on November 2, 2012. To see what a fee costs over time, try the MER calculator.

What are VFV’s distributions made of?

VFV pays distributions quarterly, usually within ten days after each quarter ends. Vanguard’s distribution history for 2025 splits the year’s payout per unit by type:

  • Foreign income: $1.81
  • Foreign withholding tax: $0.28 taken off that income
  • Return of capital: $0.001
  • Total paid: $1.53

The other income, eligible dividends and capital gains columns were empty that year. Vanguard reports each year’s actual return of capital in January.

In a non-registered account, the fund sends a T3 slip. A fund distribution you reinvest is taxed as though you had received it, and the amount reinvested is added to your adjusted cost base (ACB); a fund that pays its year-end capital gains this way (reinvested in new units, then immediately consolidated so your unit count doesn't change) still gives you taxable income and a higher ACB. For return of capital and your adjusted cost base (ACB), see how ETFs are taxed, the T3 slip guide and DRIP investing.

How does VFV’s structure affect US withholding tax in each account?

The US taxes the dividends that reach VFV through VOO, and that withholding line in the breakdown above is paid inside the fund. BlackRock’s withholding-tax guide says any Canadian-listed ETF with US stocks bears the same US withholding whether it holds them directly or through another ETF, and in every account, taxable or not. The treaty rate is generally 15% for taxable Canadian investors.

  • RRSP or RRIF: holding a US-listed ETF such as VOO directly is generally exempt from US withholding; holding VFV isn’t.
  • TFSA or RESP: the withholding is a cost you can’t get back, whichever fund you hold.
  • Non-registered account: a foreign tax credit can generally offset it.

BlackRock adds that withholding is only one factor among many. The US-listed vs Canadian-listed ETFs page works through the costs, and VFV vs VOO compares the two funds.

How does VFV compare with ZSP, XUS and VOO?

BMO’s ZSP and iShares’ XUS also follow the S&P 500; ZSP holds the stocks directly. VFV’s MER is 0.08%, against 0.09% for ZSP and 0.09% for XUS, each issuer’s latest reported figure. For a hedged version, there are VSP and iShares’ XSP. The S&P 500 ETF table sets these side by side, and VFV vs ZSP vs XUS explains what differs.

What doesn’t VFV do?

  • Spread beyond the US. It is made up of large US companies.
  • Spread evenly. Its ten largest holdings were 40.52% of the fund, and one sector, information technology, was 38.56%.
  • Shield you from the US dollar. Exchange-rate moves can lower its value in Canadian dollars.
  • Pay a steady income. Its ETF Facts says “Don’t buy this ETF if you need a steady source of income from your investment,” and Vanguard rates its volatility as medium.
  • Guarantee anything. There’s no guarantee, you can lose money, and ETFs aren’t covered by CDIC deposit insurance.

Where to go next

Sources

The figures and rules on this page come from these sources, last checked against them between September 23, 2026 and October 12, 2026. How we check facts.