If you are choosing between VFV and ZSP, you are really deciding between two near-identical S&P 500 index ETFs from different providers — Vanguard Canada (VFV) and BMO Asset Management (ZSP). Both track the same S&P 500 Index, hold almost the same underlying U.S. stocks, charge the same 0.09% MER, and pay quarterly distributions. The differences are small enough that for most Canadian investors, picking either one is fine.
Quick verdict: VFV and ZSP are essentially the same product. Both track the S&P 500, both charge 0.09% MER, and both are very large Canadian-listed S&P 500 ETFs. Choose VFV if you prefer Vanguard’s lower-cost-investing brand and slightly larger asset base and Vanguard indexing brand. Choose ZSP if you want a Canadian-managed fund or already do banking with BMO. The performance difference between them is within rounding error.
If you are still new to ETFs, it helps to understand the basics of what an ETF is and what MER means before deciding which S&P 500 fund belongs in your portfolio.
VFV Overview
VFV (Vanguard S&P 500 Index ETF) is a Toronto-listed ETF that tracks the S&P 500 Index and gives Canadian investors exposure to 500 of the largest U.S. companies. Launched in November 2012, VFV has grown into one of the largest ETFs in Canada by AUM. Vanguard does not currency-hedge this fund — you get full USD exposure on the underlying holdings.
Key details:
- Inception: November 2, 2012
- Assets Under Management (AUM): ~$27.8 billion CAD
- Management Fee: 0.08%
- Management Expense Ratio (MER): 0.09%
- Distribution Yield: 1.2% (equity yield)
- Distribution Frequency: Quarterly
- Number of Holdings: 504
- Currency Hedging: No (unhedged)
- Risk Level: Medium
VFV’s portfolio is essentially the entire S&P 500 Index, holding 504 stocks (the index typically has 500 names, but slight variations occur during rebalancing). The top 10 holdings — NVIDIA (~7.6%), Apple (~6.7%), Alphabet (~5.4%), Microsoft (~4.9%), Amazon (~3.7%), Broadcom (~2.6%), Meta (~2.2%), Tesla (~1.9%), Berkshire Hathaway (~1.6%), and JPMorgan Chase (~1.3%) — make up about 38% of the fund. Information Technology is the dominant sector at ~33%, followed by Financials, Communication Services, and Consumer Discretionary.
Because VFV is unhedged, your returns in CAD are influenced by USD/CAD movements. If the U.S. dollar strengthens against the Canadian dollar, your VFV returns get a boost. If the loonie strengthens, returns are dampened. Over the long run, currency fluctuations tend to add volatility but not much directional bias.
ZSP Overview
ZSP (BMO S&P 500 Index ETF) is BMO Asset Management’s competitor to VFV — also tracking the S&P 500 Index, also Toronto-listed, also unhedged. Launched in November 2012 (just 12 days after VFV), ZSP has built up substantial AUM and is one of the largest BMO ETFs by assets. BMO has been aggressive on fees and matched Vanguard’s pricing exactly: 0.08% management fee, 0.09% MER.
Key details:
- Inception: November 14, 2012
- Assets Under Management (AUM): ~$21.39 billion CAD
- Management Fee: 0.08%
- Management Expense Ratio (MER): 0.09%
- Annualized Distribution Yield: 0.82%
- Distribution Frequency: Quarterly
- Number of Holdings: 504
- Currency Hedging: No (unhedged)
- Risk Level: Medium
ZSP holds essentially the same S&P 500 basket as VFV. The top 10 holdings are virtually identical: NVIDIA (~7.58%), Apple (~6.67%), Microsoft (~4.92%), Amazon (~3.64%), Alphabet Class A (~2.99%), Broadcom (~2.62%), Alphabet Class C (~2.40%), Meta (~2.24%), Tesla (~1.87%), and Berkshire Hathaway (~1.57%). Sector weights mirror the S&P 500 index — Information Technology ~33%, Financials ~13%, Communication Services ~10%, and so on. Because both ETFs track the same index with the same methodology, you would expect the holdings and weights to match almost exactly. They do.
One thing worth noting on yield: ZSP and VFV report yield differently. ZSP shows an “annualized distribution yield” based on its recent distribution rate, while VFV shows an “equity yield” based on the underlying portfolio. These are different metrics, not different fund behaviour. If you bought $10,000 of either fund, you would receive roughly the same dollar amount in distributions per quarter.
VFV vs ZSP: Side-by-Side Comparison
| Feature | VFV | ZSP |
|---|---|---|
| Provider | Vanguard Canada | BMO Asset Management |
| Index Tracked | S&P 500 | S&P 500 |
| MER | 0.09% | 0.09% |
| Management Fee | 0.08% | 0.08% |
| AUM | ~$27.8 billion | ~$21.39 billion |
| Number of Holdings | 504 | 504 |
| Yield (reported) | 1.2% (equity) | 0.82% (annualized distribution) |
| Distribution Frequency | Quarterly | Quarterly |
| Currency Hedging | No | No |
| Recent performance | Very similar over comparable periods because both track the same index. Use current provider pages for exact trailing returns. | |
| Inception Date | Nov 2, 2012 | Nov 14, 2012 |
Fund data sourced from Vanguard Canada VFV and BMO ZSP product/factsheet pages checked May 3, 2026. VFV figures referenced Vanguard’s March 31, 2026 factsheet; ZSP figures referenced BMO’s February 28, 2026 factsheet. ETF metrics change — verify current figures before investing.
When “Identical” Funds Aren’t Quite Identical
VFV and ZSP track the same index with the same methodology and charge the same fees. So why would anyone pick one over the other? A few small but real differences:
AUM and liquidity
VFV has about $27.8B in AUM versus ZSP’s roughly $21.39B — both are massive and highly liquid, but VFV is roughly 35% larger. In practice, this means VFV typically has slightly tighter bid-ask spreads, which matters most for active traders or large block orders. For a long-term buy-and-hold investor placing modest orders, the spread difference is invisible.
Tracking error
Both funds aim to replicate the S&P 500 minus fees, and both do so within a fraction of a percent of their benchmark. Over comparable periods, their returns should be extremely close because both funds track the same index and charge the same MER. Small differences can come from reporting dates, cash drag, fund expenses, and tracking mechanics, but they should not drive the decision for most investors.
Distribution mechanics
Both pay quarterly distributions of dividends collected from underlying holdings. The reported yields can look different because providers use different yield labels and calculation methods. That does not mean one fund is structurally better for income; both ultimately pass through dividends from the same S&P 500 companies.
Brand and ecosystem
This is more of a personal preference than a financial difference. Vanguard has a strong global reputation as the firm that made low-cost index investing mainstream — many DIY investors prefer it for that reason. BMO is a major Canadian bank, so if you already have a BMO account or want to stay within a Canadian institution, ZSP fits naturally. Neither is “better” — both are legitimate, regulated providers under Canada’s CIRO and CIPF framework.
VFV vs ZSP: Pros and Cons
VFV Pros:
- Largest AUM among Canadian-listed S&P 500 ETFs ($27.8B)
- Slightly tighter spreads due to larger trading volume
- Vanguard’s brand and global reputation in low-cost index investing
VFV Cons:
- Identical product to ZSP — no real performance edge
- U.S.-based parent company (some Canadians prefer domestic-managed funds)
ZSP Pros:
- Same 0.09% MER as VFV — fully competitive on price
- Canadian-managed (BMO Asset Management)
- Convenient if you already use BMO for banking or other accounts
- Substantial AUM ($20.55B) — plenty of liquidity
ZSP Cons:
- Slightly smaller AUM and trading volume than VFV
- BMO’s reporting conventions can make yield comparisons across providers harder to read
Why Choose One Over the Other?
- Brand preference: If Vanguard’s name in indexing matters to you, VFV. If you prefer Canadian-managed funds, ZSP.
- Existing brokerage: Both trade on the TSX and are available at every major Canadian brokerage. Pick whichever shows up first in your platform’s search.
- Liquidity: Active traders or large block buyers may prefer VFV for marginally tighter spreads. For long-term DCA investors, irrelevant.
- Tax-loss harvesting: One useful trick — if you want to harvest a tax loss on one without violating the superficial loss rule, you could swap from VFV into ZSP (or vice versa) since they are similar but not identical securities.
Should You Hold Both VFV and ZSP?
Generally, no — holding both VFV and ZSP simultaneously is redundant. They give you the same exposure to the S&P 500 with the same fees and similar liquidity. The exception is the tax-loss harvesting scenario above, where you might temporarily own one to bridge a 30-day waiting period before re-buying the other.
If you want true diversification beyond the S&P 500, consider pairing one of these with a globally diversified all-in-one ETF like XEQT or VEQT, or with an asset allocation fund like VGRO.
Who Should Buy VFV vs ZSP?
You should buy VFV if:
- You prefer Vanguard’s brand: The firm that pioneered low-cost index investing has earned that reputation over 50+ years.
- You trade larger blocks: Slightly tighter spreads from larger AUM matter at meaningful trade sizes.
- You want the largest, most-traded option: VFV has been the top S&P 500 ETF in Canada for several years running.
You should buy ZSP if:
- You prefer Canadian-managed funds: BMO is one of Canada’s Big Five banks, and BMO Asset Management runs the fund domestically.
- You bank with BMO: If you already use BMO for chequing or InvestorLine, holding ZSP keeps things consolidated.
- You are tax-loss harvesting from VFV: ZSP is the cleanest “similar but not identical” alternative.
Both VFV and ZSP can be bought commission-free on Questrade or Wealthsimple. Both are TFSA, RRSP, FHSA, RESP, and non-registered eligible. This is an affiliate link, and we may earn a commission if you sign up through it.
Final Thoughts
VFV and ZSP are about as close to identical products as you can find in the Canadian ETF market. Same index, same MER, same number of holdings, same distribution frequency. The choice between them is more about preference than performance.
If you have no strong preference, lean VFV by default — Vanguard’s brand and slightly larger AUM are small but real edges. If you have an existing relationship with BMO or specifically want a Canadian-managed product, ZSP works just as well.
One thing both share: they are unhedged. If you want CAD-hedged S&P 500 exposure to remove currency risk, see our VFV vs VSP comparison.
Check out our other ETF comparison articles:
VFV vs ZSP FAQ
Are VFV and ZSP the same fund?
No, but they are functionally equivalent. Both track the S&P 500 Index, both hold the same 504 U.S. stocks, both charge a 0.09% MER, and both pay quarterly distributions. Returns track within a few basis points of each other.
Why does ZSP show a lower yield than VFV?
Different reporting conventions. ZSP reports “annualized distribution yield” (~0.93%); VFV reports “equity yield” (~1.2%). The actual cash distributions investors receive are nearly identical.
Can I hold VFV or ZSP in my TFSA or RRSP?
Yes, both are eligible for TFSAs, RRSPs, FHSAs, RESPs, and non-registered accounts. Note that U.S. dividends inside Canadian-listed ETFs can still face U.S. withholding tax inside the fund. The RRSP treaty benefit is cleaner when holding U.S.-listed ETFs directly. For VFV and ZSP, treat the withholding-tax treatment as broadly similar.
Are VFV and ZSP currency-hedged?
No, both are unhedged. Returns in Canadian dollars are influenced by USD/CAD movements. If you want CAD-hedged S&P 500 exposure, look at VSP (Vanguard) or ZUE (BMO).
Which has performed better historically?
Neither has a reliable long-term performance edge. Because both track the same S&P 500 index and charge the same MER, any small historical return gap is usually noise from timing, cash drag, or tracking mechanics. Pick based on provider preference, liquidity, and account fit, not a tiny past-return difference.
Disclaimer: The information in this article is for educational purposes and should not be taken as personalized financial advice. Both VFV and ZSP are solid S&P 500 ETFs, but it is important to do your own research (as we have with sources like Vanguard Canada and BMO Asset Management) and consider your unique financial situation or consult a financial advisor before making investment decisions. Investing in ETFs carries risks including possible loss of principal — always ensure any investment aligns with your objectives and risk tolerance.
Last updated: May 3, 2026
