Ticker: AAPL (NASDAQ) Market Cap: ~$2.8 trillion (as of May 2025) Sector: Information Technology
Apple released its Q2 FY2025 earnings on May 2, 2025. The company beat expectations on earnings per share, grew its services segment, raised its dividend, and announced the largest stock buyback in U.S. corporate history. Yet, not everything was perfect — sales in China declined, and investors are still waiting for Apple’s big AI moment.
Let’s break it all down for Canadian investors.
🔢 Q2 2025 Financial Highlights (vs. estimates)
Metric
Reported
Expected
Revenue
$90.8B
$90.0B
Earnings per Share
$1.55
$1.50
iPhone Revenue
$48.6B
$47.9B
Services Revenue
$23.9B
$23.5B
Mac Revenue
$7.1B
$6.9B
✅ Strengths
Despite an uncertain global economy, Apple delivered resilient performance across its core businesses, demonstrating why it remains one of the world’s most valuable companies.
Strong iPhone and Services Performance
Apple’s iPhone sales grew 2% year-over-year, reaching $48.6 billion. This is a major positive in a mature smartphone market where many competitors are seeing flat or declining unit sales. The launch of the iPhone 15 lineup has proven sticky, and Apple’s ability to command premium pricing remains unmatched.
The services segment continues to be a standout performer, with revenue hitting a record $23.9 billion. This includes the App Store, iCloud, Apple Music, Apple TV+, and more. Services now make up over 26% of total revenue, and margins in this segment exceed 70%, significantly higher than hardware margins.
Recurring Revenue and Ecosystem Strength
Apple’s strategy to build a closed, sticky ecosystem is paying off. With over 2.3 billion active devices globally, the company has a massive installed base to monetize. More users are subscribing to multiple Apple services, increasing ARPU (average revenue per user) and improving predictability of future cash flows.
Apple’s move toward recurring revenue gives it more stability and valuation strength, especially during hardware cycles or slower macroeconomic conditions.
Capital Return to Shareholders
Apple announced a 4% dividend increase to $0.26 per share and launched a $110 billion stock buyback program — the largest in U.S. corporate history. This reflects management’s confidence in the long-term health of the business and provides direct value to shareholders.
Canadian investors holding AAPL in USD or CAD (via a CDR) also benefit from this capital return strategy, though dividend income is subject to U.S. withholding tax unless held in an RRSP.
Financial Discipline and Balance Sheet Strength
Apple maintains over $55 billion in net cash and continues to generate strong free cash flow. This financial strength allows the company to invest in future innovations (like AI, chips, or wearables) while still returning capital and weathering downturns.
Overall, Apple remains a high-margin, high-return business, with a brand and ecosystem that’s nearly impossible to replicate.
⚠️ Weaknesses
While Apple’s headline numbers were strong, several underlying concerns could limit growth or weigh on valuation going forward.
Weakness in China
Perhaps the most significant red flag was a sharp drop in revenue from China, down 8% year-over-year. This is worrying because China has long been a crucial growth market for Apple, often contributing 15–20% of total revenue.
What’s driving the decline?
Huawei is making a comeback with competitive 5G smartphones, winning back local consumers.
Geopolitical tension between the U.S. and China is intensifying. Reports suggest government agencies in China are restricting iPhone use, especially in official settings.
Slower consumer spending in China is weighing on premium electronics sales.
Apple’s premium pricing model is facing resistance in a region where national brands are gaining momentum. If this trend continues, it could drag down international growth.
Innovation Concerns
Another growing concern is the lack of perceived innovation. While Apple refines its products consistently, the iPhone has not seen a game-changing update in years. The Vision Pro, Apple’s mixed-reality headset, is seen more as a long-term bet and remains a niche product due to its $3,499 price tag.
Analysts and tech observers are increasingly comparing Apple’s pace of innovation unfavourably to rivals like Microsoft and Google, who are rapidly integrating AI into cloud, productivity, and search tools.
Without a compelling AI story or breakout new hardware, Apple risks being seen as a late adopter rather than a leader in the next wave of tech.
Overdependence on iPhone
More than 53% of Apple’s revenue still comes from iPhone sales. That level of concentration poses a risk. If upgrade cycles slow down — due to economic uncertainty or lack of innovation — overall revenue growth could stall.
This dependence also puts pressure on Apple to consistently deliver hits in a single product category, limiting diversification.
Regulatory Pressures
Apple faces increased regulatory scrutiny, especially in Europe. Under the Digital Markets Act (DMA), Apple is being pushed to open up its ecosystem — including allowing third-party app stores and alternative payment systems.
If enforced, these rules could impact the high-margin services segment, particularly App Store commissions, which are a key driver of growth.
Regulatory risks are mounting in the U.S. as well, with antitrust investigations targeting potential monopolistic behaviour.
AI Strategy Still Unclear
Unlike Microsoft and Google, Apple has yet to clearly articulate its vision for generative AI. While leaks suggest that iOS 18 will feature new AI tools, investors remain uncertain about Apple’s positioning in this space.
Without a compelling AI roadmap, Apple may risk falling behind competitors as AI reshapes user experience, devices, and cloud platforms.
🔮 Outlook and Growth Potential
Apple remains a long-term compounder, but it needs to address several challenges to maintain investor confidence. The most critical factors to watch over the next 6–12 months include:
China revenue recovery
The strength and rollout of iOS 18 AI features
Performance of Vision Pro and future product launches
Evolution of regulatory restrictions, especially in Europe
Despite near-term headwinds, Apple’s balance sheet, brand power, and service-driven margin profile make it one of the most defensive large-cap tech stocks available today.
🇨🇦 How Canadian Investors Can Buy Apple Stock
1. Buy AAPL on NASDAQ (USD)
Canadian investors can purchase AAPL directly in USD via brokerages like Questrade, Wealthsimple, RBC Direct Investing, etc.
⚠️ Currency conversion fees apply unless you hold USD in your account.
2. Buy Apple CDR on NEO Exchange (CAD)
Ticker: AAPL.NE
Traded in Canadian dollars
Built-in FX hedge
Fractional exposure = more affordable
CDRs are an accessible way for Canadians to own U.S. stocks without worrying about currency fluctuations or full share prices.
Apple’s Q2 2025 results show strength in core products and services, strong free cash flow, and shareholder discipline. But the company is under pressure to prove its AI strategy, recover from China market weakness, and avoid becoming too reliant on the iPhone.
For Canadian investors, Apple remains a foundational stock — but staying informed about regulatory shifts and competitive dynamics will be key.
Ticker: GOOGL (NASDAQ) Market Cap: ~$2.1 trillion (as of May 2025) Sector: Communication Services
Q1 2025 Highlights
Alphabet delivered a strong Q1 on April 25, 2025, beating both revenue and earnings expectations. This was a breakout quarter for the tech giant, which also announced its first-ever dividend and a $70B stock buyback.
Key Numbers (vs. expectations)
Metric
Reported
Expected
Revenue
$81.4B
$78.6B
EPS (GAAP)
$1.89
$1.53
Operating Margin
32%
27%
Google Cloud Revenue
$11.5B
$10.9B
YouTube Ads Revenue
$8.3B
$7.9B
✅ Strengths
Alphabet’s Q1 2025 earnings revealed several clear strengths that highlight the company’s evolution from a high-growth tech firm into a more mature, balanced business. These strengths span profitability, core advertising resilience, and an important shift toward rewarding shareholders.
Google Cloud Turns Profitable
For years, Google Cloud was seen as Alphabet’s “catch-up” segment — a division investing heavily to close the gap with Amazon Web Services (AWS) and Microsoft Azure. In Q1 2025, that narrative changed.
Google Cloud delivered $11.5 billion in revenue, up 20% year-over-year. More importantly, it posted $900 million in operating profit. That’s a big shift from prior quarters where the segment was barely breaking even. This performance also marked the third consecutive quarter of profitability for the cloud division.
What’s driving this improvement? First, enterprise customers are adopting Google’s AI-driven tools, like Gemini for business and Vertex AI, as cloud becomes the backbone of digital transformation. Second, Google has been improving its operational efficiency, cutting excess costs while expanding margins.
For investors, this means the cloud is no longer a cost centre. It’s a high-growth, high-potential revenue stream that is becoming a pillar of long-term profitability.
Search and Ads Still Lead
Despite rising competition from platforms like TikTok and AI-powered search alternatives, Alphabet’s core ad business remains robust. In Q1, Google Search ad revenue grew 13% year-over-year, showing resilience in a tough macro environment.
The driver here is twofold. First, demand from retail advertisers remains strong, especially in sectors like e-commerce and travel. Second, Alphabet is leveraging artificial intelligence to improve ad targeting and user experience. Features like Search Generative Experience (SGE) are already being tested to show AI-enhanced answers with ads integrated natively.
This segment continues to deliver strong operating margins, supporting Alphabet’s overall margin expansion to 32% in Q1. Even as newer AI products emerge, Alphabet’s traditional business remains a reliable cash flow engine.
Shareholder Returns Begin
Perhaps the most significant strategic shift this quarter was Alphabet’s decision to initiate a dividend and expand its share buyback program.
The company declared its first-ever dividend of $0.20 per share, a signal that Alphabet is entering a more mature phase of its lifecycle. While small in size for now, it opens the door to recurring income for investors — especially attractive to Canadian retirees or dividend-focused investors holding U.S. stocks.
In addition, Alphabet announced a $70 billion stock repurchase plan, one of the largest buybacks in the tech sector. This helps boost earnings per share (EPS) by reducing the share count and reflects the company’s confidence in its long-term value.
Combined, these actions show that Alphabet is no longer just reinvesting for growth — it’s also returning capital to shareholders, making it more attractive to a broader base of investors.
⚠️ Weaknesses
YouTube Still Facing Competition
Despite 20% growth, YouTube is under pressure from TikTok. Monetization of Shorts is still lagging, and engagement from younger demographics is shifting.
Ongoing Antitrust Risks
Alphabet faces several antitrust lawsuits in the U.S. and Europe, targeting its dominance in search and advertising. Regulatory pressure could impact long-term margins.
Rising AI-Related CapEx
Capital expenditures rose to $12 billion (up 40% YoY), driven by data centres and custom AI chips. Heavy investment is necessary but impacts free cash flow.
📈 Key Financial Ratios
Ratio
Value
Notes
Price/Earnings (P/E)
~24x
Reasonable for a mega-cap tech
Operating Margin
32%
Highest in several quarters
Return on Equity (ROE)
28%
Very strong
Free Cash Flow Margin
21%
Supports dividend + buyback
Debt-to-Equity
0.05
Very low leverage
🔮 Outlook and Prospects
Alphabet is balancing growth with profitability. Its AI-first strategy—from Gemini to Google Workspace—is gaining traction. Cloud and advertising are both benefiting from AI innovation.
Key Growth Drivers
Enterprise AI adoption through Google Cloud
AI-enhanced search and advertising
Recurring shareholder returns through buybacks and dividends
That said, investors should watch out for regulatory actions, TikTok competition, and rising AI costs.
🇨🇦 How Canadian Investors Can Buy Alphabet Stock
Canadian investors have multiple ways to invest in Alphabet, depending on their goals and preferences.
Buy Directly on the NASDAQ (USD)
You can buy GOOGL or GOOG shares directly through most Canadian brokerages (Wealthsimple, Questrade, RBC, etc.) in U.S. dollars.
GOOGL = Class A (voting rights)
GOOG = Class C (no voting rights)
Note: Currency conversion fees may apply.
Invest via Alphabet CDR in CAD
Alphabet is available as a Canadian Depository Receipt (CDR) on the NEO Exchange under the symbol GOOG.NE.
Trades in Canadian dollars
Built-in currency hedge
Lower share price (fractional exposure)
CDRs are a convenient way to hold U.S. stocks without worrying about FX or high share prices.
Buy ETFs That Hold Alphabet
For broader exposure, Canadians can buy ETFs that include Alphabet:
Alphabet’s Q1 2025 results were strong across the board—cloud is now profitable, search ads are stable, and AI investment is beginning to pay off. The introduction of dividends and buybacks marks a shift toward mature tech leadership.
For Canadian investors, the stock is accessible in multiple formats, whether you’re looking for direct ownership, CDRs, or ETF exposure.
The energy sector has long stood as an enduring force, shaping economies and influencing markets across the globe. For Canadian investors seeking exposure to this vital industry, Energy Exchange Traded Funds (ETFs) offer a strategic gateway. In this post, we delve into the best Canadian energy ETF s in Canada, spotlighting the most robust contenders. We are limiting our analysis to fund with over $100 million in assets under management.
We will discuss in this post their objectives, historical performance, Management Expense Ratios (MER), and portfolio breakdown.
XEG – iShares S&P/TSX Capped Energy (Best index ETF for the energy sector)
The goal of the iShares S&P/TSX Capped Energy Index ETF (XEG) is to let Canadian investors tap into the energy sector. It aims to mirror the S&P/TSX Capped Energy Index, which showcases how the Canadian energy market is doing.
This ETF includes companies involved in various energy-related activities, like searching for oil, producing energy, and distributing it. By investing in XEG, you can easily and affordably get a mix of different energy companies.
If you’re a Canadian investor interested in the energy industry, including both traditional energy and newer green energy companies, considering XEG could be a smart move. Keep in mind that XEG’s performance closely follows the underlying index, so how the energy sector does will affect how the ETF performs.
NNRG is managed by Ninepoint Partners. It’s one of Canada’s leading alternative investment management firms overseeing approximately $8 billion in assets under management and institutional contracts. Ninepoint offers mutual funds and ETFs targeting various sectors. The Ninepoint Energy fund is offered in two versions: a Mutual fund and an ETF.
NNRG ETF invests primarily in mid-cap companies involved directly or indirectly in the exploration, development, production and distribution of oil, gas, coal, or uranium.
NNRG is an active ETF. The fund does not replicate an index. On the contrary, the portfolio manager selects stocks that best fit the funds’ stated objective. NNRG is suited for investment with high-risk tolerance.
NXF CI First Asset Energy Giants ETF Unhedged and NXF-B CI First Asset Energy Giants Cov Call ETF
NXF operates as an actively managed exchange-traded fund (ETF) with a focus on the energy sector. Its investment strategy centers around the 15 most significant energy companies listed on the North American stock exchange. The core objectives of the fund encompass several key aspects:
This ETF aims to generate regular cash distributions to its investors on a quarterly basis. Additionally, it seeks to achieve capital appreciation by employing an equally weighted approach to investing in a diversified portfolio of equity securities. These securities belong to a minimum of the 15 largest energy companies, as determined by their market capitalization.
One of the key advantages that NXF strives to offer is the reduction of investment volatility. By carefully selecting and managing its investments, the fund aims to provide a level of stability in returns.
It’s important to note that NXF distinguishes itself as a currency-hedged ETF. This means that it employs strategies to mitigate the potential impact of currency fluctuations on its returns. On the other hand, its counterpart, NXF-B, does not incorporate such hedging mechanisms and is exposed to currency risk.
The primary objective of the BMO Equal Weight Oil & Gas Index ETF (ZEO) is to closely mimic the performance of the Solactive Equal Weight Canada Oil & Gas Index. The fund achieves this by investing in and retaining the same Constituent Securities as the Index.
ENCC – Horizons Canadian Oil and Gas Equity Covered Call
ENCC is specifically crafted to cater to Canadian investors. Its central mission encompasses:
a) Providing an avenue for Canadian investors to access the performance of an index comprising domestic companies operating within the crude oil and natural gas industry. The current representation of this index is the Solactive Equal Weight Canada Oil & Gas Index.
b) Delivering monthly distributions that encompass dividend earnings and call option income, while factoring in expenses.
To effectively manage and potentially mitigate downward market risks while simultaneously generating income, ENCC will employ a dynamic covered call option writing strategy tailored to the preferences and needs of Canadian investors.
When it comes to investing in U.S. markets, the S&P 500 is often the go-to index for Canadian investors. Two popular ETFs for tracking this index are Vanguard S&P 500 Index ETF (VFV) and iShares Core S&P 500 Index ETF (XSP). While both ETFs give you exposure to the 500 largest U.S. companies, there are key differences that might influence your choice. Let’s break it down!
What Do VFV and XSP Offer?
VFV: Vanguard S&P 500 Index ETF
VFV tracks the U.S. S&P 500 index, offering exposure to 500 of the largest U.S. companies like Apple, Microsoft, and Amazon. It does not use currency hedging, meaning your returns are impacted by fluctuations in the USD/CAD exchange rate. If the U.S. dollar strengthens relative to the Canadian dollar, VFV investors benefit, but if the Canadian dollar strengthens, returns could decline. VFV’s low MER of 0.09% makes it a cost-effective choice for long-term investors. This ETF is ideal for those comfortable with currency risk and who believe the U.S. dollar will remain strong over time.
XSP: iShares Core S&P 500 Index ETF
XSP also tracks the S&P 500 but includes currency hedging, which aims to neutralize the impact of USD/CAD fluctuations. This results in steadier returns tied closely to the S&P 500’s performance, regardless of exchange rate changes. With a MER of 0.10%, XSP is a good choice for short-term investors or those seeking reduced currency risk.
Key Similarities and Differences
Feature
VFV
XSP
Underlying Index
S&P 500 (Large-cap U.S. stocks)
S&P 500 (Large-cap U.S. stocks)
Currency Hedging
No
Yes
MER (Management Fee)
0.09% (slightly lower)
0.10% (slightly higher)
Impact of CAD/USD
Exposed to exchange rate changes
Minimized by hedging
Diversity
Broad exposure across sectors: technology, healthcare, finance, etc.
Same broad exposure across sectors
Currency Hedging
The biggest difference is currency hedging.
VFV does not hedge against USD/CAD fluctuations. If the U.S. dollar strengthens against the Canadian dollar, your returns may increase, and vice versa.
XSP uses currency hedging to reduce this risk. Your returns are tied more closely to the performance of the S&P 500 itself, not the exchange rate.
Example: Imagine the S&P 500 rises by 10% in a year. During the same period:
The U.S. dollar strengthens by 5% against the Canadian dollar.
VFV investors would see a total return of approximately 15% (10% from the S&P 500 + 5% from currency gains).
XSP investors, due to hedging, would see 10%, as currency changes are eliminated.
If the Canadian dollar strengthens by 5%,
VFV’s total return would drop to approximately 5% (10% from the S&P 500 – 5% currency loss).
XSP investors would still see 10%.
This illustrates how VFV’s returns are influenced by exchange rates, while XSP offers steadier performance tied purely to the index.
Performance Differences
Currency hedging can affect your returns. For example:
In years when the Canadian dollar weakens relative to the U.S. dollar, VFV may outperform XSP because it benefits from the exchange rate.
In years when the Canadian dollar strengthens, XSP may have an edge because it eliminates this currency risk.
Performance Comparison: VFV vs. XSP (Annualized Returns)
The performance numbers clearly show that VFV (unhedged) has outperformed XSP (hedged) across all timeframes.
When to Choose VFV
You’re Comfortable With Currency Risk: VFV can benefit if the U.S. dollar strengthens over time. Historically, the USD has often been stronger than the CAD.
You Want Lower Costs: With a slightly lower MER, VFV saves a little on fees.
When to Choose XSP
You Want to Avoid Currency Fluctuations: If you don’t want your returns to be affected by exchange rate movements, XSP is the safer choice.
Shorter Time Horizon: If you’re investing for the short term, currency fluctuations can significantly impact returns. Currency hedging reduces this volatility.
What About Dividends?
Both VFV and XSP provide exposure to dividends from S&P 500 companies. However:
Dividends paid by U.S. companies are subject to a 15% withholding tax for Canadian investors, even if you hold the ETFs in a TFSA.
In an RRSP or RRIF, this withholding tax is typically waived under the Canada-U.S. tax treaty.
If dividends are a key part of your strategy, VFV may be slightly more efficient for RRSP investors since it holds U.S. stocks directly, avoiding an extra layer of fees.
Which One Should You Choose?
The choice between VFV and XSP depends on your investment goals, risk tolerance, and view on currency fluctuations:
Long-Term Investors: VFV may be the better option if you’re willing to accept currency fluctuations, especially if you expect the U.S. dollar to remain strong.
Short-Term or Conservative Investors: XSP is ideal if you want less exposure to currency risk.
Final Thoughts
Both VFV and XSP are excellent ETFs for gaining exposure to the S&P 500.
Choose VFV for simplicity, lower costs, and long-term U.S. dollar exposure.
Choose XSP for stability and reduced currency risk.
No matter which you choose, both ETFs offer a low-cost, diversified way to invest in some of the largest and most successful companies in the U.S.
Got any questions about these ETFs? Let me know in the comments below!
If you’re looking to add U.S. dividend ETFs to your portfolio, you’re on the right track. The U.S. market is packed with opportunities for steady income, dividend growth, and portfolio diversification. But let’s be real—without the right strategy, you could lose a chunk of your returns to taxes or currency swings. Here’s how to make smart choices and keep more of your hard-earned cash.
Top-Quality Companies: The U.S. market has global leaders with solid dividends and strong balance sheets. Think of companies like Microsoft, Johnson & Johnson, and Procter & Gamble.
Dividend Growth: Many U.S. firms don’t just pay dividends—they grow them year after year, helping you fight inflation.
Diversification: Adding U.S. stocks spreads your risk. Canada is heavy on energy and financials; the U.S. offers tech, healthcare, and consumer goods.
Currency Tailwind: If the U.S. dollar rises against the Canadian dollar, your investments gain an extra boost.
Comparison Asset under management and fees
The table below shows assets under management in millions, the dividend yield, and the fees for each ETF selected. The fees range from 0.30% to 0.97%. Index ETFs tend to have the lowest MERs, while actively managed ones are more expensive. DXG Dyn Ishares Active Global Div, ZWH BMO US High Dividend Covered Call, and VGG Vanguard US Div Appr are the most popular US dividend ETFs in Canada.
In comparison to Canadian dividend ETFs, US dividend ETFs offer better diversification. As discussed in our previous post, Canadian dividend ETFs tend to be dominated by financials and energy.
Source Yahoo Finance – Average Dividend yield (approximation)
US dividend ETFs ideal for investors who seek capital growth
RUD.TO – RBC Quant U.S. Dividend Leaders ETF
RUD.TO emphasizes financial strength and dividend growth over time. Its consistent average returns over 3 and 5 years highlight its effectiveness in providing both regular income and long-term capital growth. Its positive YTD return, albeit modest, suggests some resilience.
VGG.TO and VGH.TO – Vanguard US Dividend Appreciation
Both VGG and VGH track the NASDAQ US Dividend Achievers Select Index, composed of securities with a history of increasing annual dividends. VGG is non-hedged while VGH is CAD-hedged against currency fluctuations. VGG’s higher returns across the board might indicate a benefit from currency fluctuations or simply better performance of the non-hedged approach in the given period.
HAZ.TO – Horizons Active Global Dividend
HAZ’s strong YTD return suggests effective active management and selection of international dividend-paying stocks. Its strategy focusing on dividend growth, cash flow payout, and sustainability appears to be yielding good results, making it an attractive option for those seeking regular income and modest capital growth from a diversified international portfolio.
DXG.TO – Dyn Ishares Active Global Div ETF
DXG is another actively managed fund with a significant portion invested in U.S. companies. Despite a negative YTD return, its 5-year average suggests good long-term performance. Its strategy of selecting dividend-paying large caps across various sectors like Technology and Healthcare seems to yield substantial returns over a longer horizon.
US dividend ETFs ideal for investors who are seeking income
ZWH BMO US High Dividend Covered Call has been designed to provide exposure to a dividend-focused portfolio while earning call option premiums. ZWH offers an attractive dividend yield of close to 6%. What’s unique about this ETF is that it uses covered calls to protect against downside risk. The covered call strategy provides limited downside protection. Also, when you write a covered call, you give up some of the stock’s potential gains. These ETFs will tend to have a higher yield and a lower performance. ZWH is a non-hedged ETF.
Tax implications of owning US dividend ETFs
There are tax implications when holding an ETF that invests in US and international stocks. Any dividend received will be reduced by withholding taxes depending on the scenarios below. The table below provides a summary:
Canadian ETF: 1$ dividend scenario
Taxes
Dividend received
1- Holding US or International stocks directly
-0.15$ (withholding tax from US or foreign jurisdiction) Creditable
0.85$
2- Holding US listed ETFs that invest in US stocks
-0.15$ (withholding tax from US or foreign jurisdiction) Creditable
0.85$
3- Holding US listed ETFs that invest in International stocks
-0.15$ (withholding tax from foreign jurisdiction) Non creditable -0.13 (withholding tax from US) Creditable
0.72$
The chart is designed for illustrative purposes only and is subject to change. Please consult a tax specialist for more information.
DXG – Dyn Ishares Active Global Div ETF
DXG is a actively managed fund. The fund invests primarily in a diversified portfolio of equity securities of businesses located around the world that pay or are expected to pay a dividend or distribution. These securities are selected actively based on size, profitability and liquidity. 56% of the funds holdings are invested in US companies, this is why it’s part of our list of the best US Dividend ETFs in Canada.
This ETF is ideal for investors seeking a dividend income from an international basket of large caps. The fund is well diversified across a variety of sectors mainly Technology, Industrials, Consumer discretionary and Health care.
Please consult issuers’ website for the most up-to-date data
DXG Sector breakdown
Country
Fund
United States
62.3
International
35.8
Please consult issuers’ website for the most recent data
DXG Sector breakdown
Sector
% Allocation
Financial Services
21.7%
Technology
17.8%
Consumer Cyclical
15.0%
Please consult issuers’ website for the most up-to-date data
ZWH – BMO US High Dividend Covered Call ETF
ZWH has been designed to provide exposure to a dividend focused portfolio, while earning call option premiums. The underlying portfolio is yield-weighted and broadly diversified across sectors. The Fund utilizes a rules-based methodology that considers the following criteria:
dividend growth rate,
yield,
payout ratio,
liquidity.
What’s unique about this ETF is that it uses covered calls to protect against downside risk. This being said, the covered call strategy provides limited downside protection. Also, when you write a covered call, you give up some of the stock’s potential gains. These ETFs will tend to have a higher yield and a lower performance.
Please consult issuers’ website for the most recent data
VGG – Vanguard US Div Appr and VGH – U.S. Dividend Appreciation Index ETF (CAD-hedged)
VGG and VGH are both index fund (passively managed). They have the same investment strategy. They currently seeks to track the performance of the NASDAQ US Dividend Achievers Select Index. The latter is comprised of a select group of securities with at least ten consecutive years of increasing annual regular dividend payments.
VGH is hedged: Meaning the manager will seek actively to reduce currency risk. VGG is not hedged against currency fluctuation risk.
Index funds can be great especially from an MER perspective. VGG and VGH charge 0.30% MER which the lowest among the ETFs selected in our list. They offer an exposure to large number of established US corporations, mostly Bluechips such as Microsoft, Walmart…etc.
The choice between VGG and VGH depends solely on the investor take on currency. If the Canadian dollar appreciates then a hedged ETF will be a better choice. On the other hand, if the US dollar appreciates, then the non hedged ETF will have a better performance.
Please consult issuers’ website for the most up-to-date data
VGG Geographic allocation
Country
Fund
USA
99.3%
Please consult issuers’ website for the most up-to-date data
VGG Sector allocation
Sector
% Allocation
Financial Services
17.0%
Industrials
16.9%
Healthcare
15.5%
Please consult issuers’ website for the most up-to-date data
ZDY – BMO US Dividend CAD
BMO US Dividend ETF has been designed to provide exposure to a yield weighted portfolio of U.S. dividend paying stocks. The ETF utilizes a rules based methodology that considers the three year dividend growth rate, yield, and payout ratio to invest in U.S. equities. Securities will also be subject to a liquidity screen process. The underlying portfolio is rebalanced in June and reconstituted in December.
Please consult issuers’ website for the most recent data
ZDY Sector allocation
Sector
Fund
Information Technology
20.38%
Industrials
8.79%
Consumer Discretionary
6.27%
Health Care
15.99%
Financials
17.21%
Materials
1.35%
Communication
6.71%
Consumer Staples
10.98%
Energy
2.80%
Utilities
8.82%
Real estate
0.70%
Please consult issuers’ website for the most recent data
RUD – RBC Quant U.S. Dividend Leaders ETF
RUD seeks to provide unitholders with exposure to the performance of a diversified portfolio of high-quality U.S. dividend-paying equity securities that will provide regular income and that have the potential for long-term capital growth.
The fund manager uses an inhouse multi-factor approach to gauge a company’s financial strength. An emphasis is put on companies that grow their dividends overtime.
The index is designed to measure the performance of companies within the S&P Composite 1500® that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years.
Please consult issuers’ website for the most recent data
DXU Sector breakdown
Sector
Weight %
Information Technology
32.49
Consumer Discretionary
18.57
Industrials
13.45
Health Care
13.19
Financials
9.09
Communication
5.30
Consumer Staples
4.17
Materials
3.35
Cash
0.39
Please consult issuers’ website for the most recent data
HBF – Harvest Brand Leaders Plus Income
HBF is an equally weighted portfolio of 20 large companies selected from the world’s Top 100 Brands. The ETF is designed to provide a consistent monthly income stream with an opportunity for growth. In order to generate an enhanced monthly distribution yield, an active covered call strategy is engaged.
Please consult issuers’ website for the most up-to-date data
HAZ – HORIZONS ACTIVE GLOBAL DIVIDEND
HAZ is an actively managed ETF. The investment objective is to seek long-term returns consisting of regular dividend income and modest long-term capital growth. The fund is advised by Guardian Capital Group Limited. Stocks are selected from international markets based on three key fundamental drivers:
Please consult issuers’ website for the most recent data
HAZ Geographic allocation
Country
Fund
United States
62.12
United Kingdom
6.68
France
6.26
Canada
6.09
Ireland
5.30
Switzerland
5.34
Other
8.21
Please consult issuers’ website for the most recent data
HAZ Sector breakdown
Sector
Weight %
Information Technology
28.23
Consumer Discretionary
9.07
Industrials
15.35
Health Care
8.93
Financials
4.21
Communication
1.62
Consumer Staples
9.40
Materials
9.12
Energy
6.58
Real estate
4.71
Utilities
1.38
Cash & equivalent
1.40
Please consult issuers’ website for the most recent data
Have you ever wondered why the cash sitting idle in your brokerage account earns little to no interest? The reason is simple: brokers use that cash at minimal cost to them, leveraging it for their financial operations. This practice allows brokers to offer low trading commissions, but it leaves your savings underutilized.
Fortunately, there’s a way to make your idle cash work for you—Investment Savings Accounts (ISAs). These specialized accounts are often overlooked but can be an excellent tool to earn guaranteed interest on uninvested cash. Here’s a detailed guide to help Canadian investors understand and make the most of ISAs.
Executive summary
Here’s the executive summary in a table format for quick reference:
Category
Details
What Are ISAs?
High-interest savings accounts available through brokerage platforms for idle cash.
Key Features
CDIC-insured, traded like mutual funds, settle on T+1 basis, available in CAD and USD.
Advantages
– Higher interest on idle cash. – Flexibility for short-term fund parking. – Dual currency options (CAD & USD). – CDIC insurance for security.
Considerations
– Stay within CDIC limits ($100,000 per issuer). – Watch out for fees and minimum investment amounts. – Monitor interest rates regularly.
How to Get Started
– Check ISA availability with your broker. – Compare interest rates across institutions. – Place an order using the broker’s fund code.
What Are Investment Savings Accounts?
An Investment Savings Account (ISA) is a high-interest savings account offered through brokerage platforms, designed to provide better returns on idle cash. They function differently from standard savings accounts and are specifically tailored for brokerage clients.
Here’s how they work:
Available in Canadian and U.S. Dollars ISAs are available in both CAD and USD, providing flexibility to earn interest on cash held in either currency.
CDIC-Insured for Security Most ISAs are eligible for Canada Deposit Insurance Corporation (CDIC) coverage, offering protection for deposits up to $100,000 per account type per issuer.
Traded Like Mutual Funds Unlike regular savings accounts, ISAs are purchased and sold through your brokerage account, similar to mutual funds. Each transaction is considered a “trade.”
T+1 Settlement Trades for ISAs settle on a T+1 basis, meaning the transaction is finalized one business day after the trade date. This is faster than the T+2 settlement timeline for stocks and ETFs.
Series A and Series F Options ISAs are offered in two series:
Series A: Typically for individual investors, with slightly lower yields.
Series F: Higher-yielding but generally restricted to clients working with financial advisors.
Competitive Interest Rates ISAs often provide interest rates comparable to—or even better than—those of savings accounts offered directly by the same financial institutions. Remarkably, USD-denominated ISAs tend to offer significantly higher rates than regular U.S. dollar savings accounts.
Advantages of Investment Savings Accounts
Investment Savings Accounts (ISAs) offer several benefits for investors. They provide higher returns on idle cash, allowing you to earn interest on funds that would otherwise remain unused in your brokerage account.
ISAs are highly flexible, making it easy to move between cash and investments as needed. This feature makes them an ideal choice for short-term parking of funds.
Another advantage is security, as many ISAs are covered by CDIC insurance, offering an additional layer of protection for your savings.
Lastly, ISAs often offer dual currency options, making them a practical solution for investors managing both CAD and USD holdings.
Important Considerations
Stay Within CDIC Limits Ensure your deposits don’t exceed the $100,000 CDIC coverage limit per issuer. Diversify across multiple banks if necessary to maintain full insurance coverage.
Watch Out for Fees Some brokers may impose fees or minimum balance requirements for ISAs. However, many waive these fees for ISAs offered by their affiliated banks. Always check the terms before committing.
Pay Attention to Minimum Investment Amounts ISAs often have minimum purchase amounts. Ensure that your available cash meets these thresholds to avoid unnecessary delays.
Monitor Rates Regularly Interest rates and account details can change frequently. Staying informed ensures you continue to get the best rates available.
How to Open an Investment Savings Account
Check Availability with Your Broker ISAs are offered by most Canadian brokerages, including RBC Direct Investing, Desjardins Disnat, TD Direct Investing, and others. Look for products affiliated with major banks.
Compare Interest Rates Rates vary between institutions and currencies. Compare offerings across multiple brokers or banks to find the best returns.
Place an Order Purchase an ISA as you would a mutual fund. Search for the fund code provided by your broker, specify the amount, and execute the trade.
While ISAs are a great tool for earning higher interest on idle cash, they are not a substitute for long-term investments like stocks, ETFs, or bonds. They are best suited for short-term savings or as a safe place to park funds while deciding your next investment move.
For Canadian investors, choosing between the Vanguard U.S. Total Market Index ETF (VUN) and the Vanguard S&P 500 ETF (VOO) depends on several key factors such as diversification, tax efficiency, and currency considerations. Both ETFs are excellent options for gaining exposure to the U.S. stock market, but they cater to different investor needs. Here’s a breakdown to help you make an informed decision.
Executive summary
Feature
VUN (Vanguard U.S. Total Market ETF)
VOO (Vanguard S&P 500 ETF)
Index Tracked
CRSP U.S. Total Market Index
S&P 500 Index
Holdings
~4,000 (Broad U.S. market)
500 (Large-cap U.S. companies)
Currency
Canadian Dollars (CAD)
U.S. Dollars (USD)
Expense Ratio
0.16%
0.03%
Diversification
Broad market, including small- and mid-cap stocks
Focused on large-cap stocks
Tax Efficiency
Potential double withholding in TFSAs and taxable accounts
Requires USD conversion (use Norbert’s Gambit for efficiency)
Ideal Investor
Prefers broad exposure and CAD transactions
Focuses on low costs and large-cap U.S. exposure
Overview of VUN and VOO
VUN is a Canadian-listed ETF that tracks the CRSP U.S. Total Market Index, offering exposure to nearly the entire U.S. equity market, including large-, mid-, small-, and micro-cap stocks. This means you get access to over 4,000 companies across various sectors. VUN is traded in Canadian dollars, making it convenient for Canadian investors who want to avoid currency conversion fees.
VOO, on the other hand, is a U.S.-listed ETF that tracks the S&P 500 Index, representing the 500 largest publicly traded companies in the United States. While it has fewer holdings than VUN, it focuses on large-cap stocks, which historically drive a significant portion of U.S. market returns. VOO is traded in U.S. dollars and is renowned for its low expense ratio and liquidity.
ETF
Index Tracked
Holdings
Currency
Expense Ratio
Primary Focus
VUN
CRSP U.S. Total Market
~4,000
CAD
0.16%
Broad Market
VOO
S&P 500
500
USD
0.03%
Large-Cap U.S.
Diversification
VUN provides broader diversification by including mid-, small-, and micro-cap companies, which can enhance long-term growth potential and reduce concentration risk. In contrast, VOO is concentrated in large-cap stocks, which are more established and generally less volatile. However, investors seeking exposure to smaller, growth-oriented companies would miss out with VOO.
If your goal is to capture the full breadth of the U.S. market, VUN is the better option. For those who prefer to focus on the most influential companies driving U.S. economic performance, VOO is ideal.
Tax Efficiency
Tax efficiency is a critical consideration for Canadian investors. Because VUN is a Canadian-listed ETF, it is subject to a 15% withholding tax on dividends from U.S. stocks within registered accounts like RRSPs or TFSAs. VUN also holds U.S.-listed ETFs within its structure, which can lead to additional layering of withholding taxes on dividends in non-registered accounts.
VOO, being a U.S.-listed ETF, avoids this additional layer of taxation when held in an RRSP due to the Canada-U.S. tax treaty. However, if held in a TFSA or a taxable account, the 15% withholding tax applies directly. This makes VOO more tax-efficient in an RRSP, while VUN might be more convenient for TFSAs or non-registered accounts due to its Canadian dollar listing.
Account Type
VUN Tax Impact
VOO Tax Impact
RRSP
15% withholding on dividends
No withholding on dividends
TFSA
Double-layered withholding possible
15% withholding on dividends
Taxable
Double-layered withholding possible
15% withholding on dividends
Currency Exposure
Another key difference is the currency exposure. VUN is traded in Canadian dollars, which eliminates the need for currency conversion and reduces costs for Canadian investors. However, it is not currency-hedged, meaning its returns are still affected by fluctuations in the CAD/USD exchange rate. VOO, traded in U.S. dollars, requires investors to convert Canadian dollars into U.S. dollars, incurring conversion fees unless you use strategies like Norbert’s Gambit.
If you plan to hold U.S. dollars for other investments or transactions, VOO may be a more straightforward option. On the other hand, VUN is better suited for investors who prefer the simplicity of transacting in Canadian dollars.
Expense Ratios
VOO has a much lower expense ratio (0.03%) compared to VUN (0.16%). This cost difference can add up over time, especially for larger portfolios. However, the higher expense ratio of VUN is justified by its convenience for Canadian investors, including currency handling and broader diversification.
Which One Should You Choose?
The choice between VUN and VOO largely depends on your investment objectives, account type, and willingness to manage currency conversion.
Choose VUN if you value broader market exposure, prefer to transact in Canadian dollars, or plan to hold the ETF in a TFSA or taxable account.
Choose VOO if you want lower costs, focus on large-cap U.S. stocks, and hold the ETF in an RRSP to maximize tax efficiency.
By considering these factors, you can align your investment choice with your financial goals and minimize unnecessary costs or risks.
Bitcoin’s prominence as the largest cryptocurrency by market cap has led to its popularity among investors. Canadian investors, in particular, have access to innovative ETFs like BTCC and BTCX, offering direct exposure to Bitcoin’s spot price. These ETFs, provided by Purpose Investments and CI Global Asset Management, respectively, are distinct in several ways (BTCC vs BTCX).
The BTCC (Purpose Bitcoin ETF) and BTCX (CI Galaxy Bitcoin ETF) are both prominent investment vehicles for those looking to gain exposure to Bitcoin through the structure of an ETF. BTCC, with a Management Expense Ratio (MER) of 1.00%, incurs an annual fee of $100 on a $10,000 investment. On the other hand, BTCX presents a slightly more cost-effective option with an MER of 0.95%, leading to an annual fee of $95 on the same investment amount. This minor difference in fees makes BTCX marginally cheaper than BTCC, potentially offering a slight advantage to cost-conscious investors who are looking to minimize their investment expenses over time.
Assets Under Management (AUM) and Liquidity
The Purpose Bitcoin ETF (BTCC) boasts an Assets Under Management (AUM) of $1.5 billion, indicating a higher level of investor interest and confidence in this particular ETF. This substantial AUM suggests that BTCC may offer better liquidity compared to its counterparts, which can result in narrower bid-ask spreads and a diminished likelihood of the ETF being delisted due to a lack of investor interest. In contrast, the CI Galaxy Bitcoin ETF (BTCX), with an AUM of $248.85 million, though significant, is comparatively smaller than BTCC.
BTCC: Holds approximately 0.00016202 Bitcoin per share. To own an equivalent of one Bitcoin, an investor would need about 6,172 shares. It holds around 30,678 Bitcoin in total.
BTCX: Each share corresponds to about 0.0015 Bitcoin. Owning around 666 shares would approximate one Bitcoin. The total Bitcoin held is not specified in the provided text.
Storage and Security
Both ETFs store the underlying Bitcoin in secure, offline cold storage, ensuring safety against online threats.
Investors can hold these ETFs in tax-advantaged accounts like TFSA or RRSP in Canada, potentially saving on income tax upon selling.
Currency Hedging
Neither BTCC nor BTCX is currency-hedged. The share prices of these ETFs can be influenced by CAD-USD exchange rate fluctuations, adding an extra layer of volatility for investors.
Final Thoughts BTCC vs BTCX
For investors who prioritize minimizing investment costs, the CI Galaxy Bitcoin ETF (BTCX) may present an attractive option due to its slightly lower Management Expense Ratio (MER) of 0.95%. This cost efficiency can be particularly appealing for those looking to maximize their returns by reducing the fees associated with their investments. On the other hand, investors who prefer the stability and established nature of a larger fund might find the Purpose Bitcoin ETF (BTCC) more to their liking, as it boasts a higher Assets Under Management (AUM) of $1.5 billion. This larger AUM not only reflects BTCC’s popularity but also suggests potentially greater liquidity and a reduced risk of delisting.
When it comes to the amount of Bitcoin exposure per share, BTCX offers a more favorable ratio, making it an attractive choice for investors seeking to maximize their direct Bitcoin exposure through each share of the ETF they hold. This feature could sway investors who wish to align closely with Bitcoin’s market movements.
Additionally, it’s crucial for investors to consider the impact of currency fluctuations on their investments, especially given that both BTCC and BTCX are not currency-hedged. This absence of currency hedging means that the value of the ETFs could be influenced by changes in the CAD-USD exchange rate, introducing an additional layer of volatility. This factor is particularly important for investors who are sensitive to currency risk and its potential impact on their investment returns.
In this post, we will review a popular index ETF on the TSX: the Vanguard S&P500 ETF. We will first explain what’s an index ETF. Then, we will discuss VFV’s historical performance, fees and holdings. Finally, we will compare VFV against similar ETFs.
The S&P500 is a snapshot of the best the US economy has to offer
Investing in the S&P 500 is a compelling proposition for Canadian investors seeking exposure to the largest and most prosperous businesses in the USA. Through the use of a simple fund, such as an S&P 500 index ETF (Exchange-Traded Fund), investors can easily tap into the growth potential of a diverse range of top-tier American companies. This strategy is especially appealing to long-term investors, a sentiment endorsed by legendary investor Warren Buffett, known for his advocacy of index investing and his admiration for the S&P 500.
The S&P 500 index represents a comprehensive snapshot of the US stock market, encompassing 500 of the most significant publicly traded companies. This diversity spans across various sectors, mitigating the risk associated with individual company performance fluctuations. By investing in an S&P 500 index ETF, Canadian investors can achieve broad market exposure without having to pick individual stocks, effectively reducing the risk of poor stock selection.
High Liquidity
One of the key advantages of investing in the S&P 500 through an ETF is the ease of access it offers. ETFs are traded on stock exchanges, providing investors with the flexibility to buy and sell shares throughout trading hours. This liquidity ensures that investors can swiftly enter or exit positions, granting them control over their investments. Additionally, ETFs generally come with lower fees compared to actively managed funds, making them a cost-effective option for investors looking to optimize their returns over the long term.
Historical performance
The S&P 500’s historical performance underscores its attractiveness for long-term investors. Over the past several decades, the index has exhibited strong and consistent growth, outpacing inflation and generating substantial returns. While short-term market fluctuations are inevitable, the S&P 500’s overall trajectory has been upward. This aligns with the principles of long-term investing, where time in the market is emphasized over timing the market.
Warren Buffet is a big fan of the S&P500
Warren Buffett, often referred to as the Oracle of Omaha, has consistently praised the merits of index investing and has frequently recommended the S&P 500 as a solid foundation for investors’ portfolios. His endorsement is rooted in the index’s ability to capture the overall growth of the American economy, which has historically been a reliable driver of long-term wealth accumulation.
Furthermore, Warren Buffett has advocated for low-cost investing, which aligns with the structure of index ETFs. These funds typically have lower expense ratios compared to actively managed funds, leading to less erosion of returns over time. This resonates with the legendary investor’s belief in maximizing returns by minimizing fees and expenses.
Low fees
One significant advantage of owning an index ETF is low fees. The manager is simply replicating the index’s performance either by acquiring directly or indirectly (using derivatives) the constituents of the index. There is no additional effort involved in the selection process, thus no need to generously compensate the portfolio manager. It might also be pertinent to know that empirical studies have consistently shown that active portfolio managers rarely beat the S&P 500 index in the long term. In other words, only a few managers can outguess the market in the long run.
Since all three ETFs track the same index and it’s understandable they will have very close performance.
Is There a 15% Withholding Tax on Dividends Paid by VFV?
Yes, there is a 15% withholding tax on dividends paid by VFV. Here’s what this means for Canadian investors:
VFV, which holds a U.S. Vanguard S&P 500 ETF, distributes dividends from U.S. stocks. The United States imposes a 15% withholding tax on these dividends before they are distributed to foreign investors, including Canadians.
Impact on Dividends
This withholding tax reduces the net amount of dividends you receive. For example, for every $1 of declared dividends, you only receive $0.85 after the 15% withholding tax.
How to Avoid This Withholding Tax
To avoid this withholding tax, Canadian investors can:
Invest in a U.S.-listed S&P 500 ETF within an RRSP: When these ETFs are held in a Registered Retirement Savings Plan (RRSP), U.S. dividends are exempt from the withholding tax due to the tax treaty between Canada and the United States.
The equivalent of VFV in the U.S. market is the Vanguard S&P 500 ETF (VOO). Like VFV, VOO tracks the S&P 500 index, but it is listed in the United States and is not affected by currency fluctuations for U.S. dollar investors.
In summary, while VFV is an excellent way to invest in the S&P 500 index using Canadian dollars, it is important to consider the withholding tax on dividends, as it reduces the net amount you receive.
please consult issuers website for up-to-date data
What are the Fees associated with ETFs
Management Expense Ratio (MER):
The percentage of a fund’s average net assets paid out of the fund each year to cover the day-to-day and fixed costs of managing the fund. The figure is reported in the Fund’s annual management report of fund performance. MER includes all management fees and GST/HST paid by the fund for the period, including fees paid indirectly as a result of holding other ETFs.
Management Fee:
The annual fee payable by the fund to the manager of the fund for acting as trustee and manager of the fund. This fee forms the largest portion of the MER. Typically, included in the management fee are the costs associated with paying the custodian and valuation agents, registrar and transfer agents, and any other service providers retained by the manager.
Operating Expenses:
Other operating costs such as fees and expenses relating to the independent review committee, brokerage expenses and commissions, and taxes.
Executive summary VFV vs VGRO
In summary, VFV concentrates on U.S. large-cap stocks, specifically tracking the S&P 500, while VGRO provides a more diversified approach with a 20% allocation to bonds and 80% to equity. VGRO’s balanced structure makes it a suitable choice for investors seeking a mix of growth potential and risk mitigation through a diversified portfolio.
Mirrors the S&P 500, focusing on U.S. large-cap stocks.
Diversified fund designed for long-term growth (80% equity, 20% bonds).
Risk
High risk due to concentration in U.S. large-cap stocks.
Lower risk due to bond allocation and global diversification.
Portfolio
Holds U.S. stocks across sectors like tech, healthcare, finance, etc.
Globally diversified portfolio with Canadian, U.S., international stocks, and bonds.
Fees
Low fees, making it cost-effective for U.S. market exposure.
Slightly higher fees but offers diversified exposure across asset classes.
Diversity
Focuses on U.S. large caps.
Broad global and multi-asset diversification.
Investor Suitability
Best for investors seeking exposure to U.S. market growth.
Suitable for investors seeking growth with risk mitigation through bonds.
VFV (Vanguard S&P 500 Index ETF):
Objective: VFV aims to mirror the performance of the S&P 500 Index, representing the 500 largest U.S. companies.
Risk: With a focus on U.S. large-cap stocks, VFV’s risk is closely tied to the performance of these companies. The fund’s value may experience fluctuations based on the ups and downs of the S&P 500.
Portfolio: VFV holds a portfolio of U.S. companies spanning various sectors, including technology, healthcare, finance, and more. It provides investors with exposure to the overall U.S. market.
Low Fees: Notably, VFV is an index ETF with very low fees, enhancing its appeal for cost-conscious investors seeking efficient exposure to the U.S. large-cap market.
VGRO (Vanguard Growth ETF Portfolio):
Objective: VGRO, in contrast, is a diversified fund designed for long-term growth. It’s a balanced portfolio comprising both equity and fixed income ETFs.
Risk: With a 20% allocation to bonds, VGRO carries lower risk compared to VFV. The inclusion of bonds provides a hedge against stock market volatility.
Portfolio: VGRO holds a globally diversified portfolio, encompassing Canadian, U.S., and international stocks, along with bonds. This diversification aims to spread risk and capitalize on opportunities across different markets.
Diversity for All Investor Types: Vanguard extends its offering of all-in-one ETFs beyond VGRO. There are options tailored to conservative, balanced, and growth-oriented investors, providing a comprehensive range to suit varying risk appetites.
Simplified Investing: These all-in-one solutions cater to investors looking for simplicity and a one-stop-shop for their investment needs. With diverse allocations across asset classes, Vanguard’s suite of all-in-one ETFs caters to a spectrum of investor preferences.
