These two ETFs offer the same kind of access to U.S. and international companies as U.S. registered mutual funds—but without the high fees.
Pennsylvania-based Vanguard Group is one of the world’s largest investment management companies. In all, it administers almost $3 trillion U.S. across 175 mutual funds and ETFs.
Generally speaking, Canadians are unable to buy mutual funds that are registered in the U.S. because these investments aren’t registered with provincial securities commissions. Moreover, some Canadian funds are only available in a limited number of provinces.
Canadians can, however, buy Vanguard exchange-traded funds listed on stock exchanges. Here are two ETFs we see as low-fee buys.
VANGUARD GROWTH ETF $107.07 (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 mainly consists of big U.S. companies.
The $53.1 billion fund holds Apple, Alphabet, Amazon.com, Facebook, Coca-Cola, Comcast, Home Depot, and Visa. Other top holdings include Philip Morris International, Walt Disney, Amgen Inc and Oracle Corp. Vanguard launched the ETF on January 26, 2004. Its MER is just 0.08%.
The fund’s breakdown by industry is as follows: Technology, 24.6%; Consumer Services, 20.9%; Health Care, 14.6%; Financials, 12.2%; Industrials, 11.4%; Consumer Goods, 11.2%; Oil and Gas, 3.5%; Materials, 1.1%; and Telecom Services, 0.5%.
Recommendation in Canadian Wealth Advisor: Vanguard Growth ETF is a buy.
The simpler the better with ETFs
Here’s the straightest route to success with ETFs. Buy the original, easy-to-understand ETFs and avoid complex hybrids created for the greater profit of the investment industry. Pat McKeough explains why in this new report and recommends 11 ETFs for a stronger portfolio.
ETFs: ETF taps into emerging markets with 0.15% MER
VANGUARD FTSE EMERGING MARKETS ETF $37.04 (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 0.15%.
The top holdings of Vanguard FTSE Emerging Markets include Tencent Holdings (China: Internet), Taiwan Semiconductor (computer chips), Naspers Ltd. (South Africa: media), China Construction Bank, China Mobile, Industrial & Commercial Bank of China, Hon Hai Precision Industry (Taiwan: electronics), Bank of China and Petroleo Brasileiro (Oil & Gas).
The breakdown by country for this $61.0 billion fund is as follows: China, 28.7%; Taiwan, 15.6%; India, 11.9%; Brazil, 8.3%; South Africa, 7.9%; Mexico, 4.2%; Russia, 3.9%; Thailand, 3.9%; Malaysia, 3.7%; Indonesia, 2.8%; Philippines, 1.7%; Turkey, 1.3%; Chile, 1.3%; and others, 4.8%.
Recommendation in Canadian Wealth Advisor: Vanguard FTSE Emerging Markets ETF is a buy for aggressive investors.
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I appreciate these alternatives to US market mutual funds. Or are those high priced mutual funds the alternative to these ETF’s