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