If you’re a Canadian investor looking to tap into the consistent growth of the U.S. stock market without the headache of picking individual stocks, VFV ETF (Vanguard S&P 500 Index ETF) should be on your radar in 2025. With over $20 billion in assets, low fees, and direct exposure to America’s 500 largest companies, VFV offers a simple yet powerful way to build wealth over the long term.
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Let’s explore why VFV remains one of the best ETFs for Canadian investors in 2025, how it performs, what it holds, and what makes it stand out in a crowded field of index funds.
What is VFV ETF?
The VFV ETF, managed by Vanguard Investments Canada Inc., is designed to track the performance of the S&P 500 Index, giving investors access to the largest and most influential U.S.-based companies.
- Inception Date: November 2, 2012
- Total Assets (as of April 30, 2025): $20.61 billion
- Benchmark: S&P 500 Index (CAD NY Rate)
- Strategy: Passively managed with full replication
- Base Currency: CAD
- Exchange: Toronto Stock Exchange
- Distribution Frequency: Quarterly
- Distribution Yield (12-month trailing): 1.13%
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Why Invest in VFV ETF in 2025?
1. Instant Diversification Across the U.S. Economy
VFV gives you exposure to 500 of the largest U.S. companies, including giants like Apple, Microsoft, NVIDIA, and Amazon. This provides instant sector and industry diversification across technology, financials, consumer goods, healthcare, and more.
2. Low-Cost Investing
With a Management Expense Ratio (MER) of just 0.09%, VFV is one of the cheapest ETFs for Canadians seeking U.S. equity exposure. Over time, lower fees mean higher compounding returns.
3. Strong Long-Term Performance
From April 30, 2024 to April 30, 2025, VFV delivered a 19.26% gain in NAV price, outperforming many actively managed funds. Since inception, VFV has consistently mirrored the robust historical returns of the S&P 500.
4. Tax-Efficient Structure for Canadians
Unlike U.S.-listed ETFs, VFV is CAD-denominated and trades on the TSX, making it easier and more tax-efficient for registered accounts like RRSPs and TFSAs.
VFV ETF 2025: Performance Snapshot
| Metric | Value |
|---|---|
| NAV (May 16, 2025) | $147.84 CAD |
| 52-Week High (NAV) | $156.03 CAD |
| 52-Week Low (NAV) | $125.98 CAD |
| 1-Year NAV Return | +19.26% |
| Beta | 1.00 (as expected for S&P 500) |
| Sharpe Ratio | 0.73 |
| Standard Deviation | 13.54% |
Note: Past performance is not indicative of future returns.
VFV ETF 2025: Top 10 Holdings (as of May, 2025)
| Company | Sector | Weight |
|---|---|---|
| Apple Inc. | Information Technology | 6.75% |
| Microsoft Corp. | Information Technology | 6.21% |
| NVIDIA Corp. | Information Technology | 5.64% |
| Amazon.com Inc. | Consumer Discretionary | 3.67% |
| Meta Platforms Inc. | Communication Services | 2.54% |
| Berkshire Hathaway | Financials | 2.07% |
| Alphabet Inc. (GOOG) | Communication Services | 1.96% |
| Broadcom Inc. | Information Technology | 1.91% |
| Tesla Inc. | Consumer Discretionary | 1.66% |
| Alphabet Inc. (GOOGL) | Communication Services | 1.61% |
These top holdings reflect the tech-heavy nature of the U.S. market, which continues to drive global innovation and market performance.
Dividends & Distributions VFV ETF
VFV pays a quarterly income distribution, averaging around $0.40 per unit in recent quarters.
| Recent Distributions | Date Paid | Amount |
|---|---|---|
| Q1 2025 | April 3, 2025 | $0.3981 |
| Q4 2024 | Jan 7, 2025 | $0.4002 |
| Q3 2024 | Oct 7, 2024 | $0.3567 |
| Q2 2024 | Jul 8, 2024 | $0.3767 |
Yield: The 12-month trailing yield stands at 1.13%, which is modest but consistent with S&P 500 ETF distributions.
Risks to Consider
While VFV is a well-diversified fund, it does come with market risks:
- Currency Risk: VFV is not currency hedged, so CAD/USD exchange fluctuations will affect returns.
- Market Volatility: Being fully exposed to U.S. equities means VFV will rise and fall with broader market trends.
- Sector Concentration: Heavy exposure to tech means VFV may underperform in a tech selloff.
Who Should Invest in VFV in 2025?
VFV is ideal for:
- Buy-and-hold investors seeking long-term U.S. equity growth.
- Canadians wanting passive exposure to the S&P 500 through a TFSA or RRSP.
- Those looking for low-fee, broad-market exposure without active stock picking.
Final Thoughts: Is VFV ETF a Buy in 2025?
Absolutely. With its low fees, solid performance, and effortless access to the U.S. equity market, VFV remains one of the top Canadian-listed ETFs for growth-focused investors in 2025. Whether you’re new to investing or rebalancing a long-term portfolio, VFV is a strong, stable, and time-tested choice.
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