VFV

VFV Review (2023): Vanguard S&P500 ETF For Canadians

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.

What’s an index ETF

There are several types of ETFs. Index ETFs are the king of the hill. The first-ever ETF introduced to a North American Exchange was an index ETF. Index ETFs offer exposure to many securities and sometimes to a whole stock exchange at a meager cost. Their main goal is to acquire, on your behalf, all the securities that constitute a specific index to achieve the same return of the tracked index minus the fees.

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Advantage of Index ETFs

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.

VFV Investment objective

Vanguard S&P 500 Index ETF seeks to track the performance of a broad U.S. equity index that measures the investment return of large-capitalization U.S. stocks. The S&P 500 Index, or the Standard & Poor’s 500 Index, is a market-capitalization-weighted index of the 500 largest publicly-traded companies in the U.S. 

The S&P 500 is an excellent index because most of its constituents are large, established US corporations. Besides, It’s well-diversified across various sectors of the US economy. The S&P 500 is widely regarded as the best gauge of large-cap U.S. equities. It can be easily used to express an opinion on the US economy in general. In other words, if you are bullish on the performance of the American economy in the long term, it’s probably the best index for you.

MER and Asset under management

NameMERAUM
 VFVVanguard S&P
500 Index 
0.08%5,310
 XUSIshares Core S&P
500 Index 
0.10%4,616
 ZSPBMO S&P
500 Index 
0.09%10,450

VFV has one of the lowest Management Expense Ratio in its category at 0.08%. The difference with other similar ETFs remain really small though.

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Historical performance

Updated daily

Since all three ETFs track the same index and it’s understandable they will have very close performance.

VFV ETF: Morningstar rating

Rating: 4 out of 5.

VFV Stock Profile

Updated daily

VFV Stock 52 weeks high and low

VFV Dividend history

TypeEx-div
Date
Paym
Date
Total
Distrib
per
Unit
Income30 Dec 202110 Jan 2022$0.335374
Capital
Gains
(ETFs)
30 Dec 202110 Jan 2022$0.014552
Income29 Sep 202108 Oct 2021$0.266675
Income29 Jun 202108 Jul 2021$0.259310
Income26 Mar 202106 Apr 2021$0.269015

VFV ETF Holdings

Holding NameWeight
%
Apple Inc.6.03
Microsoft Corp.5.74
Amazon.com Inc.3.88
Facebook Inc. Class A2.19
Alphabet Inc. Class A2.18
Alphabet Inc. Class C2.03
Tesla Inc.1.70
NVIDIA Corp.1.40
Berkshire Hathaway Inc. Class B1.37
JPMorgan Chase & Co.1.32
please consult issuers website for up-to-date data

VFV Sector allocation

SectorFund
Information Technology27.6%
Health Care13.3%
Consumer Discretionary12.4%
Financials11.4%
Communication Services11.3%
Industrials8.0%
Consumer Staples5.8%
Energy2.7%
Real Estate2.6%
Materials2.5%
Utilities2.4%
Total100.0%
please consult issuers website for up-to-date data