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Quick verdict: VFV is one of the cleanest ways for Canadians to buy the S&P 500 in Canadian dollars. It is low-cost, simple, and strong for investors who want U.S. large-cap exposure without converting to USD. The tradeoff is concentration: VFV is 100% U.S. stocks, heavily weighted toward large U.S. companies, and it does not give you Canadian, international, or bond exposure by itself.
This VFV ETF review looks at Vanguard’s S&P 500 Index ETF from a Canadian investor’s point of view: fees, holdings, dividends, performance, TFSA/RRSP fit, risks, and whether VFV is enough as a core portfolio holding.
What is VFV?
VFV is the Vanguard S&P 500 Index ETF, a Canadian-listed ETF that trades on the Toronto Stock Exchange in Canadian dollars. Its goal is to track the performance of the S&P 500 Index, which represents large U.S. companies.
According to Vanguard’s VFV product page and March 31, 2026 factsheet, VFV seeks to track a broad U.S. equity index and currently tracks the S&P 500 Index. It invests directly or indirectly primarily in U.S. companies.
People sometimes search for “VFV stock,” but VFV is not a stock. It is an ETF that holds exposure to hundreds of U.S. stocks through one ticker.
VFV ETF facts
| Feature | VFV |
|---|---|
| Full name | Vanguard S&P 500 Index ETF |
| Ticker | VFV |
| Exchange | Toronto Stock Exchange |
| Currency | CAD |
| Benchmark | S&P 500 Index |
| Management fee | 0.08% |
| MER | 0.09% as of Dec. 31, 2025 |
| Distribution schedule | Quarterly |
| Net assets | $27.8 billion as of Mar. 31, 2026 |
| Eligible accounts | TFSA, RRSP, FHSA, RESP, RRIF, RDSP, non-registered |
Source: Vanguard Canada VFV factsheet, March 31, 2026.
What does VFV hold?
VFV gives Canadian investors exposure to the S&P 500. That means the fund is dominated by large U.S. companies, with a heavy tilt toward technology and communication services compared with a balanced global portfolio.
As of Vanguard’s March 31, 2026 factsheet, VFV’s top holdings included NVIDIA, Apple, Alphabet, Microsoft, Amazon, Broadcom, Meta Platforms, Tesla, Berkshire Hathaway, and JPMorgan Chase. The top 10 holdings represented 37.9% of the fund.
The top sector was Information Technology at 32.9%, followed by Financials, Communication Services, Consumer Discretionary, Health Care, and Industrials. That is normal for an S&P 500 ETF, but it matters. VFV is diversified across hundreds of companies, but it is not equally spread across sectors or countries.
VFV fees and MER
VFV is cheap. Vanguard lists a management fee of 0.08% and a MER of 0.09% as of December 31, 2025. On a $10,000 investment, a 0.09% MER works out to about $9 per year before trading commissions or account fees.
That low fee is one of the biggest reasons VFV is popular. If you are comparing ETF costs, read our guide to what MER means. Small fee differences can compound over long periods, especially in a TFSA or RRSP.
VFV performance
VFV’s performance depends on the S&P 500 and the CAD/USD exchange rate. The fund is not currency-hedged, so Canadian investors are exposed to U.S. dollar movements. If the U.S. dollar strengthens against the Canadian dollar, that can help VFV’s CAD return. If the Canadian dollar strengthens, it can hurt the CAD return.
Vanguard’s March 31, 2026 factsheet showed VFV with a 2025 calendar-year NAV return of 12.23%, a 5-year NAV return of 13.97% annualized, and a 10-year NAV return of 14.55% annualized. Those numbers are strong, but past performance is not a promise. U.S. stocks can go through long flat or negative periods.
The practical takeaway: VFV has been an excellent long-term holding for many Canadians, but you should not buy it expecting every year to look like the last decade.
VFV dividends and distributions
VFV pays distributions quarterly. Vanguard’s March 31, 2026 factsheet listed an equity dividend yield of 1.2%. The yield changes over time with stock prices, dividends, and fund holdings.
VFV should not be treated like a high-income ETF. It is primarily a growth-oriented U.S. equity ETF. If you are specifically comparing income versus growth, read our VDY vs VFV comparison.
Is VFV good for a TFSA?
VFV can be a strong TFSA holding if you want long-term U.S. equity growth and can handle volatility. Capital gains and distributions inside a TFSA are tax-free in Canada, which makes high-growth ETFs attractive for long timelines.
The main caveat is U.S. withholding tax. U.S. dividends paid through a Canadian-listed ETF like VFV can still face withholding tax before they reach your TFSA. For many investors, the simplicity of buying VFV in CAD is worth it. For larger portfolios, some investors compare VFV with U.S.-listed ETFs like VOO inside an RRSP, but that adds currency conversion and USD trading complexity.
If you are still building your TFSA strategy, start with how to start investing in a TFSA and use the TFSA contribution room calculator before adding more money.
Is VFV good for an RRSP?
VFV can also work in an RRSP, especially if you want a simple Canadian-dollar S&P 500 ETF. The same tradeoff applies: VFV is easy to buy in CAD, but some advanced investors use U.S.-listed ETFs in an RRSP to reduce U.S. withholding tax on dividends.
For most newer investors, avoiding unnecessary complexity matters. A low-cost Canadian-listed ETF that you actually buy and hold can be better than a theoretically optimized setup you never implement.
VFV vs XEQT, VGRO, and VDY
| ETF | Best use | Main tradeoff |
|---|---|---|
| VFV | U.S. large-cap S&P 500 exposure | No Canadian, international, or bond exposure by itself |
| XEQT | Global 100% equity portfolio | Less concentrated U.S. mega-cap exposure |
| VGRO | All-in-one growth portfolio with bonds | Lower equity exposure than VFV |
| VDY | Canadian dividend income | More Canada and financial-sector concentration |
If you want one ETF that covers the world, VFV is probably too narrow by itself. Compare XEQT vs VFV. If you want an all-in-one portfolio with bonds, compare VFV vs VGRO. If you are choosing between U.S. growth and Canadian dividends, compare VDY vs VFV.
Who should buy VFV?
VFV may fit if you:
- want simple S&P 500 exposure in Canadian dollars,
- believe U.S. large-cap stocks should be a major part of your portfolio,
- can handle equity volatility,
- want a low MER,
- already have Canadian, international, or bond exposure elsewhere.
Who should avoid VFV?
VFV may not be enough if you:
- want a complete one-ticket portfolio,
- need bonds for stability,
- want Canadian dividend exposure,
- are uncomfortable with currency swings,
- are tempted to chase performance after a strong run.
Where to buy VFV in Canada
You can buy VFV through most Canadian online brokerages. Since VFV trades like a stock, trading costs and account features matter.
If you are choosing a brokerage, compare Wealthsimple vs Questrade. If Questrade fits your investing style, you can open a Questrade account here. Bonus offers can change, and this is an affiliate link.
If you are not sure how ETF buying works, read how to buy stocks in Canada. The trade process is similar for ETFs.
Final verdict: is VFV a good ETF?
Yes, VFV is a strong ETF for Canadians who want low-cost S&P 500 exposure in Canadian dollars. It is simple, cheap, liquid, and backed by Vanguard.
For how VFV fits into a broader portfolio across categories (Canadian total market, international, bonds, dividends), see our Best Canadian ETFs guide.
The important question is not whether VFV is good. It is whether VFV is the right role for your portfolio. As a U.S. equity building block, it is excellent. As your entire portfolio, it may be too concentrated unless you are intentionally comfortable with 100% U.S. large-cap stocks.
This is general information, not personalized financial advice. ETF details can change, so verify current fees, holdings, and distributions with Vanguard before investing.
FAQ
Is VFV a good ETF for Canadians?
Yes, VFV can be a good ETF for Canadians who want simple, low-cost S&P 500 exposure in Canadian dollars. It is not a complete global portfolio by itself.
What does VFV hold?
VFV tracks the S&P 500 Index, giving exposure to large U.S. companies. As of Vanguard’s March 31, 2026 factsheet, top holdings included NVIDIA, Apple, Alphabet, Microsoft, Amazon, Broadcom, Meta Platforms, Tesla, Berkshire Hathaway, and JPMorgan Chase.
What is VFV’s MER?
Vanguard listed VFV’s MER at 0.09% as of December 31, 2025.
Does VFV pay dividends?
Yes. VFV pays quarterly distributions. The yield changes over time with dividends and market prices.
Is VFV better than XEQT?
VFV is better if you specifically want U.S. S&P 500 exposure. XEQT is better if you want a globally diversified all-equity ETF in one ticker.
Can I hold VFV in a TFSA?
Yes. Vanguard lists VFV as eligible for TFSAs, RRSPs, FHSAs, RESPs, RRIFs, RDSPs, DPSPs, and non-registered accounts.
Last updated: April 30, 2026
