Topic: ETFs

U.S. or developing markets? Why you should consider ETF investment in both

We think that virtually all Canadian investors—even conservative ones—can hold, say, 20% to 30% of their portfolios in U.S. stocks or U.S.-focused ETFs. Conservative investors could also add some foreign ETFs in reasonable quantities: perhaps 10% of their holdings (with a portion in higher-risk emerging-market ETFs).

Both these ETFs continue to offer low management fees while providing well-diversified, tax-efficient portfolios of high-quality stocks.


Three Stars with ETFs

*Security *Profits *Lower fees

Best ETFs for Canadian Investors lets you know which funds
any Canadian can buy with confidence

Continue Reading >>

 


VANGUARD GROWTH ETF $144.49 (New York symbol VUG; buy or sell through brokers) aims to track the Center for Research in Security Prices (CRSP) U.S. Large Cap Growth Index. It’s a broadly diversified index that consists mainly of big U.S. companies.

The $79.6 billion fund holds Apple, Alphabet, Amazon.com, Facebook, Comcast, Home Depot and Visa. Its other biggest stock holdings include Philip Morris International, Mastercard, Walt Disney, McDonald’s, Abbvie, Netflix and Boeing. Vanguard launched the ETF on January 26, 2004. Its MER is just 0.05%.

The fund’s breakdown by industry is as follows: Technology, 28.5%; Consumer Services, 20.7%; Industrials, 14.6%; Financials, 12.9%; Health Care, 11.0%; Consumer Goods, 6.9%; Oil and Gas, 3.6%; Materials, 1.6%; and Telecom Services, 0.2%.

Recommendation in Best ETFs for Canadian Investors: Vanguard Growth ETF is a buy.

ETFs: Going into developing economies through ETFs can cut risks

VANGUARD FTSE EMERGING MARKETS ETF $39.73 (New York symbol VWO; buy or sell through brokers) aims to track the Financial Times Stock Exchange (FTSE) Emerging Markets Index. It’s made up of the common stock of companies in developing countries. The ETF was launched on March 4, 2005. Its MER is 0.14%.

The top holdings for Vanguard FTSE Emerging Markets include Tencent Holdings (China; Internet), Taiwan Semiconductor Manufacturing (computer chips), Naspers Ltd. (South Africa; media), China Construction Bank Corp., Baidu Inc. (China; Internet), Industrial & Commercial Bank of China, Vale SA (Brazil; mining), Reliance Industries (India; conglomerate), Alibaba Group (China; Internet), Housing Development Finance Corp. (India; finance) and Ping An Insurance Group of China.

The breakdown by country for this $73.8 billion fund is as follows: Mainland China, 33.8%; Taiwan, 14.4%; India, 11.1%; Brazil, 9.0%; South Africa, 6.5%; Thailand, 4.2%; Russia, 4.0%; Mexico, 3.3%; Malaysia, 3.3%; Indonesia, 2.3%; Philippines, 1.3%; Chile, 1.3%; Qatar, 1.3%; Turkey, 0.8%; and others, 3.5%.

Recommendation in Best ETFs for Canadian Investors: Vanguard FTSE Emerging Markets ETF is a buy for aggressive investors.

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.