compare voo etf vs vfv etf

**Bottom-line 🏁** VOO and VFV both give you low-cost, passive exposure to the S&P 500, but they do it in slightly different ways: * **VOO** is the U.S.-domiciled, market-cap-weighted “plain-vanilla” core. * **VFV** is the Canadian-domiciled twin that tracks the *exact same index*—so your returns will only differ because of currency swings and tiny fee/distribution timing differences. For most investors, the choice boils down to **currency exposure and tax considerations**, not performance. 📈🇨🇦🇺🇸 --- ### 1. What’s actually inside the wrapper? 🧐 | Item | VOO (U.S.) | VFV (Canada) | |------|------------|--------------| | Benchmark | S&P 500 Index | S&P 500 Index | | Management style | Passive | Passive | | Domicile & listing | U.S. ETF, trades on NYSE | Canadian ETF, trades on TSX | | Currency | USD | CAD | | Expense ratio | 0.03% | 0.09% (combined VOO + FX-hedging cost) | | Dividend frequency | Quarterly | Quarterly | | AUM | $865 B | $28.3 B CAD (VFV.TO) | | Typical daily volume | 9.08 M shares | 1–2 M shares (typical for TSX large caps) | *VOO’s lower headline fee is offset by 15 % U.S. withholding tax on dividends in non-registered accounts, while VFV avoids that drag but carries a slightly higher MER because it holds VOO (or similar) and hedges the currency.* --- ### 2. How have they performed? 📊 VOO has delivered the classic S&P 500 ride: +17.58 % over the past year and +72.73 % over three years. VFV, tracking the same index, shows a very similar curve—though its CAD price will bounce around with the USD/CAD rate. |market_code|code|Ticker|Name|Date|Percentage Change| |---|---|---|---|---|---| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250304|-1.205021| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250305|1.121689| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250306|-1.813945| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250307|0.539237| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250310|-2.643954| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250311|-0.820547| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250312|0.485057| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250313|-1.306057| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250314|2.053052| |169|VOO|VOO.P|Vanguard S&P 500 ETF|20250317|0.763344| --- ### 3. Money is moving—where to? 💸 VOO continues to be the world’s most liquid S&P 500 vehicle, pulling in **$138.82 B** over the past year. VFV, by contrast, has seen **net outflows of $107.11 M** in the last three years, suggesting most Canadian investors either: 1. Hold VOO directly (and accept the withholding tax), or 2. Use a CAD-hedged U.S. equity ETF like **XSP** instead. --- ### 4. Which one fits *you*? 🤔 1. **Currency comfort** • Like USD swings? VFV lets you keep the pure S&P 500 beta. • Prefer CAD stability? VFV already trades in CAD, so you sidestep USD/CAD volatility. 2. **Tax situation** • In TFSA/RRSP: withholding tax doesn’t matter; VOO’s lower fee wins. • In taxable: VFV’s higher MER may offset the tax drag saved. 3. **Liquidity & trading costs** • VOO’s 9 M-share average volume means tight spreads for U.S.-based traders. • VFV trades well on the TSX, but bid-ask spreads can widen after hours. --- ### 5. Practical takeaways 📝 • **Core holding:** If you want the simplest, cheapest S&P 500 anchor, VOO still wins on fee alone. • **CAD income stream:** If your spending is in CAD and you dislike USD volatility, VFV is a clean Canadian wrapper—just accept the slightly higher cost. • **Taxable account?** Run a quick after-tax scenario: – VOO + 15 % dividend tax vs. VFV + ~0.06 % higher MER. --- **Curious next step 🤓** Given your 7-year horizon and CAD spending, would you like to model the after-tax impact of each ETF—or explore a blended approach (e.g., 70 % VOO / 30 % VFV) to fine-tune your currency exposure?