
TSE:VFV
This summary was created by AI, based on 5 opinions in the last 12 months.
The Vanguard S&P 500 Index ETF (VFV-T) has garnered mixed reviews from various experts. Some are concerned about potential adverse impacts from overpriced mega-IPOs like SpaceX and OpenAI, particularly regarding when these companies will enter the S&P 500 and how index buyers might be forced to buy at overvalued prices. Despite these concerns, many experts highlight the strong historical performance of the S&P 500, suggesting it remains a solid long-term investment, although potential valuation corrections could lead to lower average returns in the next decade. They recommend using market dips, when they occur, as opportunities for investment. Furthermore, the choice between VFV and similar ETFs like TPU is debated, with both showing comparable performance, while the inclusion of currency hedging strategies is noted as a personal preference for some investors. First-time investors are encouraged to approach market volatility with caution and consider diversifying into global equities, bonds, and alternative assets like gold and bitcoin.
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.