The iShares Core S&P U.S. Total Market Index ETF (XUU.TO) and the Vanguard U.S. Total Market Index ETF (VUN.TO) are both popular exchange-traded funds (ETFs) among Canadian investors looking for exposure to the U.S. stock market. Here’s a comparison XUU vs VUN:
iShares Core S&P U.S. Total Market Index ETF (XUU.TO)
Objective: XUU seeks to track the S&P Total Market Index, offering broad exposure to U.S. stocks across all market capitalizations, including large, mid, small, and micro-cap stocks.
Composition: It includes a wide range of U.S. stocks, giving a comprehensive view of the U.S. equity market.
Expense Ratio: Typically has a low expense ratio, making it a cost-effective option for investors.
Diversification: Provides extensive diversification due to its broad market coverage.
Performance: The performance depends on the overall U.S. market performance, mirroring the S&P Total Market Index.
Vanguard U.S. Total Market Index ETF (VUN.TO)
Objective: VUN aims to track the CRSP US Total Market Index, which also offers broad exposure to the U.S. stock market, including large, mid, small, and micro-cap equities.
Composition: Similar to XUU, VUN encompasses a wide array of U.S. stocks, providing a comprehensive snapshot of the U.S. equity landscape.
Expense Ratio: MER: XUU has a lower MER at 0.08%, while VUN’s MER is 0.17%.
Diversification: Offers significant diversification across various sectors and company sizes in the U.S. market.
Performance: Its performance reflects the performance of the CRSP US Total Market Index, closely mirroring the broader U.S. market.
Key Differences XUU vs VUN
Index Tracked: XUU tracks the S&P Total Market Index, while VUN tracks the CRSP US Total Market Index. Although both indexes aim to provide comprehensive U.S. market exposure, there may be slight differences in their constituent stocks and weightings.
Fund Management: XUU is managed by BlackRock (iShares), and VUN by Vanguard, both highly regarded in the ETF space, but they may have different management styles and approaches.
In summary, both XUU.TO and VUN.TO offer Canadian investors broad exposure to the U.S. stock market with a low-cost structure. The choice between them can depend on personal preference for a specific index or fund manager, as well as on the minutiae of their holdings and performance history.
