Vanguard S&P 500 Index ETF (VFV.TO)

VSP is hedged, VFV is not. CAD has has some weakness over the long term, and has been weak so far this year. So it really depends on outlook of USD vs. CAD. He'd rather hold the US version where there is no hedging; long term, the USD can remain pretty firm against the CAD.

He'd be cautious around owning a passive index like this, just because valuations are a bit high. About 45-50% of this ETF is in tech or tech-related stocks. Could make sense for a portion of your portfolio. However, he'd rather go with something more equal weight and where the exposure to tech/growth is a bit more muted.

Within a week, SpaceX will go into the NASDAQ 100. It'll take the better part of a year to get into the S&P 500, and that decision is rules-based. Index buyers may be forced to buy the public offering at an overvaluation. 

He'd be worried too. 

The next rebalancing for the S&P 500 is probably around September, but it might be next spring.

When you look at returns around the world for the last 100 years, the S&P is the leader by far. It's a winner in the long run.

That said, what's in the rearview mirror is not the future. Given the valuation of markets today, the average return for the S&P 500 over the next 10 years is going to be less than over the last 10. At some point, it's going to have a valuation correction.

From time to time (but can't know when) we get a 5-10% correction, and that's the time to put $$ in markets. So if you have a plan to allocate annually over the next decade, this is a great vehicle. Wait for those dips, and that will increase your total return.

Quite similar holdings. Within a few percentage points, they oscillate as to which one's doing better at any given time. Both are good choices.

VFV is the S&P 500 with S&P Global as the benchmark index. 

TPU's tracking index is Solactive. Uses this as a core holding. MER might be slightly lower than VFV.

In the long run, it doesn't matter which to own, because currency fluctuations even out eventually. But short term (which could be many years) a big move can happen and are hard to predict. You could own some of each ETF.

Remember that you haven't had any volatility with your GICs. It's been a fixed, set rate of return. They only ever went up.

If this is your first foray into the market, pace yourself. Get used to the fact that you're going to have volatility day to day. Have to make sure you won't get scared out of your portfolio during something like the tariff tantrum earlier this year. On the chart, you can see how this ETF had ~20% decline in April because of that, and that was in big, blue-chip US stocks.

Fee on this is 9 bps, very cheap. Very good access to the US market. Consider broadening your diversification. Also have some global and Canadian equities. Also have some bonds. Add gold, and maybe a smidge of bitcoin, to buoy your portfolio during inflationary shocks. See today's Past Top Picks for a good solution from Fidelity, FEQT.

The S&P 500 index, but in Canadian dollars. Not expensive at 9 bps MER. But, as he's pointed out before, the S&P has about 37% bunched up around 10 names (with 8 of those being tech names). So you can think it's extremely diversified, but it's not. 

He's not saying not to own it, but you need to know what you're buying compared to what you already own in your portfolio.

Very popular option for S&P 500 exposure. High exposure to "Magnificent 7". Very good performance the past 10 years. Good option for long term investors. Must be prepared to hold for 10 years (avoid market sell offs). 

Vanguard is a great place to start. Keep in mind that the S&P is broad market-cap exposure, so it's price x outstanding shares, with no connection to value. Rather, it's more a momentum strategy. Leaves you exposed to Magnificent 7 and concentration risk.

Note that it's a 9 bps expense ratio. Keep in mind that the S&P 500 is very tech and communications heavy, 30% tech and 9% communications. That space is not cheap. Risks. Those sectors have been almost the only leaders this year, so he expects some rotation into other sectors. Consider an equal weight ETF instead.

About 34% is tech and communications, so it's pricey. 25x PE, 4.4x price to book. Yield is 1.6%.

ZDY has better valuations, less exposure to tech and communications of about 20%. 18x PE, 3.3x price to book. Yield is 2.8%. More conservative. Better risk/reward.