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5 ETFs for Index Investing
Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

The Vanguard S&P 500 Index ETF (VFV-T) is recognized for offering exposure to the S&P 500 index in Canadian dollars and carries a low management expense ratio (MER) of 9 basis points, making it an affordable investment option. Despite its broad representation, concerns are raised about the lack of diversification since a significant portion of the index's value is concentrated in a few large tech companies, particularly the 'Magnificent 7'. Over the past decade, its performance has been laudable, appealing to long-term investors who are willing to endure market fluctuations, particularly during downturns. While it is considered a solid choice for those looking to invest in the index, potential investors should be aware of their overall portfolio composition and the implications of holding this ETF in the long run.

Consensus
Positive
Valuation
Fair Value
RISKY

The S&P 500 index, but in Canadian dollars. Not expensive at 9 bps MER. But, as he's pointed out before, the S&P has about 37% bunched up around 10 names (with 8 of those being tech names). So you can think it's extremely diversified, but it's not. 

He's not saying not to own it, but you need to know what you're buying compared to what you already own in your portfolio.

E.T.F.'s
BUY

Very popular option for S&P 500 exposure. High exposure to "Magnificent 7". Very good performance the past 10 years. Good option for long term investors. Must be prepared to hold for 10 years (avoid market sell offs). 

E.T.F.'s
WEAK BUY
Beginner's exposure to US companies.

Vanguard is a great place to start. Keep in mind that the S&P is broad market-cap exposure, so it's price x outstanding shares, with no connection to value. Rather, it's more a momentum strategy. Leaves you exposed to Magnificent 7 and concentration risk.

E.T.F.'s
SELL

Note that it's a 9 bps expense ratio. Keep in mind that the S&P 500 is very tech and communications heavy, 30% tech and 9% communications. That space is not cheap. Risks. Those sectors have been almost the only leaders this year, so he expects some rotation into other sectors. Consider an equal weight ETF instead.

E.T.F.'s
DON'T BUY
VFV vs. ZDY

About 34% is tech and communications, so it's pricey. 25x PE, 4.4x price to book. Yield is 1.6%.

ZDY has better valuations, less exposure to tech and communications of about 20%. 18x PE, 3.3x price to book. Yield is 2.8%. More conservative. Better risk/reward.

E.T.F.'s
BUY
Great option for investors looking to get exposure to S&P 500. Will provide steady rate of return for the long term investor. Small dividend yield as well.
E.T.F.'s
BUY
Allan Tong’s Discover Picks VFV ETF, the Vanguard S&P 500 Index ETF, is the non-hedged version, and the VSP ETF is the Canadian-hedged. Both S&P stocks trade in Toronto and both are popular. I have owned both in the past, and they do the job. Neither hold equal-weighted baskets as tech commands the largest slice at 27.3%, distantly followed by health care at 14.1% and consumer discretionary at 11.4%. Therefore, the largest holdings are Apple, Microsoft, Amazon and Tesla in that order, totaling more than 18% of VFV ETF and VSP ETF. Read 5 ETFs for Index Investing for our full analysis.
E.T.F.'s
COMMENT
The market maker has natural arbitrage. Over history, things have drifted but typically this is where there are derivatives or problems with the underlying asset class. There is little worry about dislocation with a large index.
E.T.F.'s
HOLD
If you already own this, hang on. Though, for new clients, he will invest in the S&P, because you must own this or similar S&P ETFs. The S&P has run up so much, so he doesn't add if he already owns VFV.
E.T.F.'s
PARTIAL BUY

Or other similar ETFs? They're all basically the same thing: the S&P 500, the number one index in the world, holding every famous American stock you can think of. Looking ahead, he expects other country indexes to outpace the S&P 500, including the TSX. But you should still have some exposure to the S&P 500. Go with the equal-weighted S&P 500, rather than the hedged or unhedged ETF. Go with the EQL--it's fine. Don't worry about the CAD, because the Bank of Canada won't allow the CAD to go much above 79 cents.

E.T.F.'s
WAIT
It mirrors the S&P 500, which has recently exploded. This ETF is close to its high. He feels the markets are a little overbought now, so wait till things calm, or right now buy a partial position. Warning: there could be a second wave and the US election is coming.
E.T.F.'s
DON'T BUY
A small-cap Japan ETF? Vanguard offers cheap MERs and diversified ETFs, but US stocks are overbought. Look at EM, Europe, Japan, etc. instead. There's a risk of melt-up with US stocks, but not outside the U.S.
E.T.F.'s
WATCH
An interesting ETF that he hasn't looked at before. It's had a spectacular return in the last year. The nice thing about this is that its 10 year average is 16%. They base their weighting on market value so they increase the weighting when a stock does well. It's a strategy that could fail if the market falls.
E.T.F.'s
BUY
Vanguard makes only good ETFs--cheap and does a good job tracking benchmarks. Everyone should invest something in the States. VFV has done well.
E.T.F.'s
WEAK BUY

VEQT vs. VFV vs. XWD He prefers VEQT and XWD, because he'd rather be all-world than just the U.S. He likes diversification. VEQT is all-cap vs. XWD is large-cap, and he prefers all-cap. So, VQET is his top choice here.

E.T.F.'s
Showing 1 to 15 of 28 entries

Vanguard S&P 500 Index ETF(VFV-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 6

Stockchase rating for Vanguard S&P 500 Index ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Vanguard S&P 500 Index ETF(VFV-T) Frequently Asked Questions

What is Vanguard S&P 500 Index ETF stock symbol?

Vanguard S&P 500 Index ETF is a Canadian stock, trading under the symbol VFV-T on the Toronto Stock Exchange (VFV-CT). It is usually referred to as TSX:VFV or VFV-T

Is Vanguard S&P 500 Index ETF a buy or a sell?

In the last year, 6 stock analysts published opinions about VFV-T. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Vanguard S&P 500 Index ETF.

Is Vanguard S&P 500 Index ETF a good investment or a top pick?

Vanguard S&P 500 Index ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for Vanguard S&P 500 Index ETF.

Why is Vanguard S&P 500 Index ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Vanguard S&P 500 Index ETF worth watching?

6 stock analysts on Stockchase covered Vanguard S&P 500 Index ETF In the last year. It is a trending stock that is worth watching.

What is Vanguard S&P 500 Index ETF stock price?

On 2025-03-07, Vanguard S&P 500 Index ETF (VFV-T) stock closed at a price of $147.37.