VCN stock: Investment objective
The Vanguard FTSE Canada All Cap Index ETF is on a mission to capture the essence of the Canadian equity landscape. Its goal? To mirror, as closely as possible and before accounting for fees and expenses, the performance of a comprehensive Canadian equity index. This index doesn’t discriminate – it encompasses large, mid, and small-cap publicly traded securities, painting a holistic picture of the Canadian market’s investment returns.
Diving into the specifics, this Vanguard ETF is currently dedicated to tracking the FTSE Canada All Cap Domestic Index, or its future iterations. How does it achieve this? By primarily investing in Canadian stocks spanning a broad spectrum of market capitalizations, ranging from the giants to the emerging contenders.
So, if you’re in search of an ETF that encapsulates the entirety of the Canadian equity landscape and boasts a diversified portfolio of companies, the Vanguard FTSE Canada All Cap Index ETF might be just the investment avenue you’ve been seeking.
Why invest in the Vanguard FTSE Canada All Cap Index ETF (VCN stock)?
Investing in the Vanguard FTSE Canada All Cap Index ETF can provide several compelling advantages for Canadian investors seeking broad exposure to their domestic economy. Here’s a tailored rundown of the benefits:
Diversification
The Vanguard FTSE Canada All Cap Index ETF encompasses a comprehensive array of Canadian companies across various sectors and market capitalizations. This diversification shields investors from the vulnerabilities associated with single-stock investment, helping mitigate risk.
Total Market Representation
By investing in this ETF, you’re effectively gaining ownership in a cross-section of the entire Canadian economy. This approach hedges against reliance on individual companies or sectors, ensuring you participate in the growth potential of both established large-cap firms and emerging, high-growth companies.
Cost-Effective Investing
Known for its low expense ratios, Vanguard ETFs are cost-efficient. This ETF’s lower fees translate to reduced overall costs, a crucial aspect for long-term investors concerned about fee erosion on their returns.
High Liquidity
As an ETF traded on stock exchanges, the Vanguard FTSE Canada All Cap Index ETF boasts high liquidity. This allows you to buy or sell shares with ease throughout the trading day, ensuring your investment remains flexible.
Long-Term Growth Potential
Investing in the Vanguard FTSE Canada All Cap Index ETF aligns you with Canada’s consistent economic growth over time. This strategy positions you to capture the nation’s overall economic expansion.
However, remember that investing in the Vanguard FTSE Canada All Cap Index ETF isn’t devoid of risks. The ETF’s performance is subject to market volatility and economic conditions.
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Historical performance VCN Stock
Top holdings – VCN stock
| Holding Name | % Weight |
| Royal Bank of Canada | 6.43% |
| Toronto-Dominion Bank | 5.61% |
| Shopify Inc. | 3.6% |
| Canadian Pacific Kansas City Ltd. | 3.57% |
| Enbridge Inc. | 3.48% |
| Canadian National Railway Co. | 3.37% |
| Canadian Natural Resources Ltd. | 3.09% |
| Bank of Montreal | 3.09% |
| Bank of Nova Scotia | 2.81% |
Note: total number of stocks 176
Market capitalization
| Captalization | VCN |
| Large | 79.3% |
| Medium | 18.5% |
| Small | 2.2% |
| Total | 100.% |
VCN Stock – portfolio distribution by market capitalization
The table presents a breakdown of capitalization categories and their corresponding percentages within the VCN (presumably an entity or market). The categories are divided based on the size of the capitalized companies. Here’s a summary of the data:
Large: Companies with a significant market capitalization constitute the majority, accounting for 79.3% of the total. These are likely well-established, prominent corporations with substantial market value.
Medium: Medium-sized companies make up 18.5% of the total. These could be businesses that are smaller than the large ones but still have a noteworthy market presence.
Small: The smallest segment in terms of market capitalization, representing 2.2% of the total. These are likely companies that are relatively new, niche, or have limited market value.
Summary VCN
| Aspect | VCN |
|---|---|
| Objective | Seeks to replicate FTSE Canada All Cap Domestic Index |
| Assets (AUM) | 5.0B |
| Portfolio | Large, mid, and small-cap Canadian stocks |
| MER | 0.05% |
| Duration | Designed as a long-term core holding |
| Diversification | Wide diversification across market capitalizations |
| Holdings | 176 |
