Stockchase Opinions

Stan Wong Vangrd Dividend Appr. E.T.F. VIG-N BUY Mar 13, 2025

Wait for CAD to strengthen?

He likes this ETF for US exposure. He likes names with rising dividends over time. Very reasonable 5 bps MER. Top names include: AVGO, JPM, AAPL, MSFT, V. Typically, high quality. Very strong performance, up ~16% annualized over last 5 years. Down 1.87% YTD, not too bad.

On currency, with the interest rate differential between Canada and the US, he has to wonder when we see this big rebound in the CAD. It might be some time. You want to diversify your currencies as well. Having USD exposure has worked out very well for Canadian investors over the last few years.

$189.850

Stock price when the opinion was issued

E.T.F.'s
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BUY
Is there a Canadian equivalent - Yes there is VDY, but you have to be careful as the Canadian market doesn't have the breath or the depth of the US market. But they are solid dividend payers.
BUY
Keep buying this, even now. He really likes it. You can own this through thick and thin.
BUY

VIG vs. VGG in a non-taxable account? And will the CAD go down? The USD won't go down, but he won't speculate on currencies' directions. It's impossible. But BIG is great. VGG is the Canadian one and you can buy it, but there's an extra cost with it. He prefers VIG, the USD one.

WEAK BUY

He used two US dividend ETFs: VYM-N and VIG-N. VYM screens companies for their absolute yields, thus overweights financials VIG looks for companies that have increased dividends for the last 10 years and overweight them, which is more cyclical. It's a decent, long-term core holding. Nothing exciting.

BUY
High-dividend ETF, with a low MER.

For US names. VIG is in USD, VGG uses CAD. Names like AAPL, AVGO, JPM, MSFT and so on. More of a tilt of rising dividends, especially important when interest rates are rising.