Daily Stock Opinions and Ratings

Opinions

Larry Berman CFA, CMT, CTA Vanguard S&P 500-CAD Hedged VSP-T BUY Jul 28, 2025

Canadian ETF that follows the S&P 500.

Gives you the S&P with a currency hedge. If you think about where the CAD is now, it's a bit below 70 cents. If you're going to hold this for the next decade, he'd argue that the CAD will be a little bit stronger. So may not be a bad idea to buy one with the currency hedge.

There's an annual cost to the currency hedge that's not part of the MER. Today it's about 1.75%. If the CAD is weak, you want your exposure hedged. If it's expensive relative to the US dollar, you probably want exposure to the USD. You can switch between the two in your RRSP.

BMO and other providers also have hedged vs. unhedged versions. They're all very good.

Larry Berman CFA, CMT, CTA

Unknown

Unlock Rating

$102.200

Stock price when the opinion was issued

E.T.F.'s

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

TOP PICK

He tends to be underweight the Canadian market, overweight the US. Chose this one as well because it's similar to the XSP, which he already owns and has run up. Very good representation of the index. Low fees.

COMMENT

Has out performed market given overall selloff. Will continue to hold.

PAST TOP PICK

(A Top Pick Feb 22/22, Down 4%) Market beating returns given overall market selloff. Unique combination of bond and preferred share structure. Will continue to look into buying more shares.

BUY

Allan Tong’s Discover Picks The VSP pays 1.27% and also charges 0.09. A key question is whether the CAD will rise or continue to struggle (along with many other currencies) against the American greenback, which has been on a tear. Historically, the USD outperforms the CAD, though the USD has been so strong this summer that its winning streak could end or pause. In the past year, the VFV has declined 9.17% while the VSP has fallen 13.49%. Year-to-date, CFC still outperforms its sibling. Over five years, the VFV has advanced 12.61% and the VSP 10.19%. There’s a chance the CAD could rise and the USD take a step back. However, longer-term, VFV ETF gets the edge. Read 5 ETFs for Index Investing for our full analysis.

PAST TOP PICK

(A Top Pick Feb 22/22, Down 10%) It's not XSP, so don't confuse them. He often buys US currency assets, but strikes a balance with some CAD assets. Sometimes he hedges and sometimes invests in straight USD.

PAST TOP PICK

(A Top Pick Jul 08/22, Up 28%)

He normally uses XSP, though there's no huge difference with VSP. Would continue to hold VSP.

BUY

CAD ETF for the S&P 500 with some growth and dividends, 5-year hold.

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.

BUY

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.

BUY ON WEAKNESS

He owns XSP, the same thing. He hasn't sold a single share for years, just keeps buying it. Hold on.

Most Recent Experts

Darren Sissons

Campbell Lee & Ross

The Panic-Proof Portfolio (Stockchase Research)

Stockchase Premium