
TSE:VFV
This summary was created by AI, based on 7 opinions in the last 12 months.
The Vanguard S&P 500 Index ETF (VFV-T) is regarded as a solid core holding for long-term investors, capable of navigating market fluctuations. Experts acknowledge the significant weighting of technology within the index, which raises concerns about potential overvaluation, especially with the introduction of high-profile IPOs such as SpaceX and OpenAI that might impact the ETF adversely. While some prefer the unhedged approach of VFV over the hedged version (VSP) due to currency outlooks, they advise caution given current market valuations and the likelihood of a market correction within the next decade. Overall, investors are encouraged to approach the ETF with a long-term strategy, taking advantage of market dips for enhanced returns. Additionally, diversifying across different asset classes is recommended to mitigate risks associated with high volatility in equities.
Or other similar ETFs? They're all basically the same thing: the S&P 500, the number one index in the world, holding every famous American stock you can think of. Looking ahead, he expects other country indexes to outpace the S&P 500, including the TSX. But you should still have some exposure to the S&P 500. Go with the equal-weighted S&P 500, rather than the hedged or unhedged ETF. Go with the EQL--it's fine. Don't worry about the CAD, because the Bank of Canada won't allow the CAD to go much above 79 cents.
This is pretty simple and straightfoward: it covers the S&P 500. There's no hedging in this. It comes down to how you look at the markets now. Himself, he really likes the S&P 500 as a place to invest in. The wild card are rising trade tensions. He believes there will be a resolution at some point. VFV charges only 8 basis points.
Sell this and Buy the hedged version? He just took off of his Canadian hedges today. The Cdn$ has had a strong run up, and there are built-in expectations by the Bank of Canada that the Cd$ is going to go higher. Thinks Bank of Canada has gotten a little ahead of itself and the inflation and growth forecasts for next year are a little too robust. He wouldn’t be worried about the Cdn$ going up further. If you want to be long the US market, you want to stay with the unhedged version.
S&P 500? There are at least a dozen ways to buy this in Canada. Four of the ETF’s each offer at least 2 of the versions. Also, you can get it currency hedged or unhedged. The vast majority of these ETF’s are very similar to one another. Most of them are very, very cheap. This one is among the lowest cost. A great way to get US Large Cap in an unhedged way.