Best U.S. equity ETFs for Canadian investors 2025
The MoneySense Best ETFs 2025 panel suggests what to look at for the best exchange-traded funds that own companies south of the border. The post Best U.S. equity ETFs for Canadian investors 2025 appeared first on MoneySense.
Investors have seen a decade-plus of U.S. exceptionalism with substantially higher earnings multiples for American stocks compared to their global counterparts.,However, U.S. markets are showing signs of finding a new equilibrium. So far this year, the S&P 500 has been underperforming both Canadian and European markets.
There are even indications Canadian investors are rejecting U.S. equity exchange-traded funds (ETFs) in response to U.S. President Donald Trump’s trade war and threats of annexation.
Nonetheless, U.S. equities are impossible to ignore—they represent 60% of global stock market capitalization. So, if you mean to have a globally diversified ETF portfolio, you should have an allocation to U.S. equity funds.
Best U.S. Equity ETFs 2025
| ETF | Ticker | Management fee | MER | Holdings | Description |
|---|---|---|---|---|---|
| Vanguard Total Stock Market ETF | VTI | n/a | 0.03% | 3562 | U.S.-listed version of VUN with miniscule MER |
| Vanguard US Total Market Index ETF | VUN | 0.15% | 0.17% | 3,608 u/l | Most diversified of the total market funds, Canadian-dollar version of VTI |
| iShares Core S&P U.S. Total Market Index ETF | XUU | 0.07% | 0.07% | 2,456 u/l | U.S. total market index, cap-weighted & unhedged |
| Vanguard S&P 500 Index ETF | VFV | 0.08% | 0.09% | 506 | Unhedged for currency diversification, $20.61 billion AUM |
Most of the time, as investors in Canada, we lean toward Canadian-listed funds in our Best ETFs picks just for their lower transaction costs and Canadian dollar denomination. But in this case, our panel concluded an American-listed fund, Vanguard’s Total Stock Market ETF (VTI), could be the best option available. It has a barely-there management expense ratio (MER) of 0.03%, covers the market beyond the S&P 500, and, being denominated in U.S. dollars, will capture all the currency and market’s movements. The Canadian-listed version of the same fund, VUN, came a close second amongst the panelists.
iShares’ Core S&P Total Market Index ETF (XUU) and Vanguard’s S&P 500 Index ETF (VFV) tied for third place in the voting. While our Best ETF judges favoured unhedged funds for the sake of additional currency diversification, all these funds are available in Canadian dollar-hedged versions.
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The post Best U.S. equity ETFs for Canadian investors 2025 appeared first on MoneySense.
