Is SPDR S&P 500 ETF Trust (SPY) better in a TFSA, RRSP, or taxable account?
SPDR S&P 500 ETF Trust (SPY) trades on NYSE ARCA and is US-domiciled. Here is the educational, tax-aware account-location read for Canadian investors deciding between a TFSA, RRSP, and taxable account.
Educational account fit: RRSP
US-listed ETFs pay USD dividends directly. The Canada-US tax treaty exempts these from US withholding when held inside an RRSP, which makes the RRSP the most tax-efficient home.
Dividend character: US-source foreign income (USD). Listing eligibility: Yes* — Listed on NYSE ARCA, a designated exchange in this build's exchange map
This is a fund/ETF. Fund distributions are not automatically Canadian eligible dividends, and withholding can apply at the fund level. See Canadian-listed vs US-listed ETFs.
SPY across account types
TFSA
TFSA loses ~15% of the dividend to US withholding, which is unrecoverable. For low-yield US ETFs the drag is small; for high-yield it is meaningful.
RRSP
Treaty exemption applies: no US withholding on dividends. Cleanest home for direct US-listed ETFs.
Taxable (non-registered)
US withholding is creditable via the foreign tax credit. Currency-conversion record-keeping (ACB) is the main friction.
See the live read for SPY
Open SPDR S&P 500 ETF Trust in the screener for current data and the full TFSA, RRSP, and taxable-account breakdown.
Open SPY in the screener