
TSE:VSP
This summary was created by AI, based on 2 opinions in the last 12 months.
Experts express a cautious stance on Vanguard S&P 500-CAD Hedged (VSP), particularly in comparison to its unhedged counterpart, VFV. The primary distinction noted is that VSP mitigates currency risk, which can be beneficial given the CAD's long-term weakness against the USD. Despite this hedging, there's a preference for VFV due to its lack of currency protection, as the long-term outlook for the USD remains stable. Concerns regarding high valuations are echoed, especially since a significant portion of VSP is concentrated in technology stocks. Experts suggest consulting a more diversified or equal-weight strategy to mitigate potential sector overexposure. Ultimately, they propose maintaining a diversified portfolio that may include both hedged and unhedged options according to personal risk tolerance and market outlook.
Vanguard S&P 500-CAD Hedged (VSP-T) or BMO Dow Jones Industrial Average Hedge (ZWA-T) and in the next 3-6 months? These are 2 very different things. In this one you are basically getting pure exposure to the upside to the S&P 500. The Dow has actually lagged the S&P 500. So he would want to own this one instead. Low fee and just stick with it and allow the full upside of the market to be delivered to your statement every month.