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5 ETFs for Index InvestingThis summary was created by AI, based on 4 opinions in the last 12 months.
The Vanguard S&P 500 Index ETF (VFV-T) is a very popular option for exposure to the S&P 500, particularly for long-term investors. While it offers good performance and is a great starting point for beginners, it comes with concentration risk and high exposure to tech and communications sectors. It has a relatively low expense ratio but may face risks of rotation into other sectors. When compared to ZDY, it is more heavily exposed to tech and communications and has higher valuations.
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, 3 stock analysts published opinions about VFV-T. 2 analysts recommended to BUY the stock. 1 analyst 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.
3 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 2024-10-11, Vanguard S&P 500 Index ETF (VFV-T) stock closed at a price of $141.94.
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).