Opinions
Larry Berman CFA, CMT, CTA
Vanguard S&P 500-CAD Hedged
VSP-T
COMMENT
Mar 19, 2018
Stock price when the opinion was issued
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He likes to keep it simple. XSP or VSP are his choices. Both similar, market-weighted, hedged to CAD, track fairly closely to the underlying index. Though there are offerings from other companies, these 2 have the lowest fees.
VSP is a hedged version for the S&P index, for those wanting exposure to the S&P but using Canadian dollars. XSP is fairly similar. MER costs are quite low for both. He prefers the market-weighted over the equal-weighted right now. Large and mega-caps will continue to perform well.
His mid-term target for the S&P 500 is 5500, then maybe a pullback in September-October, and then go on to hit 6000 in the first quarter of 2025. Good opportunities in it, even though the market's performed well.
VSP-T vs XSP-T vs ZSP-T. These all have exposure to the US Large Cap market, yet have different returns thus far this year. You have to be careful on these – some are currency hedged and others are not.