Quick Comparison
| Feature |
VFV |
VOO |
VGRO |
| Exchange |
TSX (CAD) |
NYSE (USD) |
TSX (CAD) |
| MER |
0.09% |
0.03% |
0.24% |
| Holdings |
S&P 500 |
S&P 500 |
Global stocks + bonds |
| Currency |
Canadian |
US |
Canadian |
| Best for |
TFSA, taxable |
RRSP (maybe) |
One-fund portfolio |
What Each ETF Invests In
VFV (Vanguard S&P 500 Index ETF)
| Detail |
Information |
| Index |
S&P 500 |
| Holdings |
~500 US large-cap stocks |
| Top holdings |
Apple, Microsoft, Amazon, Nvidia |
| Currency |
Trades in CAD, unhedged USD exposure |
| Distributions |
Quarterly |
| MER |
0.09% |
VOO (Vanguard S&P 500 ETF)
| Detail |
Information |
| Index |
S&P 500 |
| Holdings |
~500 US large-cap stocks |
| Top holdings |
Same as VFV |
| Currency |
Trades in USD |
| Distributions |
Quarterly |
| MER |
0.03% |
VGRO (Vanguard Growth ETF Portfolio)
| Detail |
Information |
| Strategy |
80% stocks, 20% bonds |
| Holdings |
7 underlying Vanguard ETFs |
| Geographic mix |
~45% US, ~30% Canada, ~25% International |
| Currency |
CAD, globally diversified |
| Distributions |
Quarterly |
| MER |
0.24% |
True Cost Comparison
MER Is Not the Full Picture
| ETF |
Stated MER |
Foreign Withholding Tax |
Currency Cost |
Total Annual Cost |
| VFV (TFSA) |
0.09% |
~0.30% |
$0 |
~0.39% |
| VFV (RRSP) |
0.09% |
~0.30% |
$0 |
~0.39% |
| VFV (taxable) |
0.09% |
~0.30% |
$0 |
~0.39% |
| VOO (RRSP) |
0.03% |
0% |
~0.50%* |
~0.53%* |
| VOO (TFSA) |
0.03% |
15% on dividends |
~0.50%* |
~0.75%* |
| VGRO |
0.24% |
~0.15% |
$0 |
~0.39% |
*Currency conversion costs vary; typically 1-2.5% round trip at banks, less with Norbert’s Gambit.
Key Insight
Despite VOO’s lower MER, VFV often has similar or lower total costs for Canadian investors due to:
- No currency conversion needed
- Simpler trading
Historical Returns (CAD)
| Period |
VFV |
VOO (in CAD) |
VGRO |
| 1 Year |
+28.5% |
+28.5% |
+18.2% |
| 3 Year (annualized) |
+12.1% |
+12.1% |
+6.8% |
| 5 Year (annualized) |
+15.8% |
+15.8% |
+9.4% |
| 10 Year (annualized) |
+14.2% |
+14.2% |
N/A |
VFV and VOO return the same thing (S&P 500), adjusted for currency. VGRO is different (diversified, bonds).
Why Returns Differ
| Factor |
VFV/VOO |
VGRO |
| US exposure |
100% |
~45% |
| International |
0% |
~25% |
| Canada |
0% |
~10% |
| Bonds |
0% |
20% |
VGRO is designed for lower volatility, not maximum returns.
Which Is Best by Account Type?
TFSA
| Choice |
Verdict |
| VFV |
✅ Best choice |
| VOO |
❌ Currency conversion costs, withholding tax |
| VGRO |
✅ Good for diversification |
In TFSA, both VFV (Canadian ETF holding US stocks) and VOO lose 15% of dividends to US withholding tax. VFV is simpler.
RRSP
| Choice |
Verdict |
| VFV |
✅ Simple, no currency hassle |
| VOO |
⚠️ Better withholding tax, but currency costs |
| VGRO |
✅ Good for hands-off approach |
VOO in an RRSP avoids US withholding tax (tax treaty), but currency conversion costs often exceed the savings.
VOO makes sense if: You use Norbert’s Gambit and have a large portfolio ($100k+).
Taxable Account
| Choice |
Verdict |
| VFV |
✅ Simple, foreign tax credit available |
| VOO |
⚠️ Same tax situation, but currency hassle |
| VGRO |
✅ Good for simplicity |
US dividends are taxed regardless. VFV is simpler.
Detailed Breakdown
VFV Pros & Cons
| Pros |
Cons |
| Trades in CAD |
Higher MER than VOO |
| No currency conversion |
Embedded withholding tax |
| Simple to buy/sell |
Only US exposure |
| Good liquidity |
No bonds |
VOO Pros & Cons
| Pros |
Cons |
| Lowest MER (0.03%) |
Trades in USD |
| No withholding tax in RRSP |
Currency conversion needed |
| Massive liquidity |
More complex |
| US listed |
Tax reporting can be harder |
VGRO Pros & Cons
| Pros |
Cons |
| All-in-one diversification |
Higher MER |
| Automatic rebalancing |
20% bonds may drag returns |
| Global exposure |
Less aggressive than 100% stocks |
| Simple |
Less US concentration |
Decision Framework
Choose VFV If:
- You want pure S&P 500 exposure
- You prefer simplicity (CAD trading)
- Any account type
- Don’t want to deal with currency
Choose VOO If:
- You have a large RRSP ($100k+)
- You’ll use Norbert’s Gambit for currency
- You want the absolute lowest MER
- You’re comfortable with USD
Choose VGRO If:
- You want one-fund portfolio
- You prefer global diversification
- You want automatic rebalancing
- Lower volatility is important
- You don’t want to pick individual ETFs
Alternatives to Consider
| If You Want |
Consider |
| S&P 500 CAD-hedged |
VSP (0.09% MER) |
| S&P 500 lower cost |
XUS (0.10% MER) |
| All-in-one aggressive |
VEQT (100% stocks) |
| All-in-one conservative |
VBAL (60/40 stocks/bonds) |
| Total US market |
VUN (more than S&P 500) |
Sample Portfolio Approaches
Simple: Just VGRO
Instant diversification, automatic rebalancing.
S&P 500 + Canada + Bonds
| ETF |
Allocation |
| VFV |
60% |
| VCN |
20% |
| VAB |
20% |
Pure Growth (100% Equity)
| ETF |
Allocation |
| VFV |
50% |
| VIU |
30% |
| VCN |
20% |