The risk is that mean reversion may not happen at some point in the future; it could be that a 3:1 exchange rate becomes the norm 50 years from now. The fund’s assets are valued at $272.46 million, and it has 45 securities leftover. If you ask me, I will prefer ZSP over VFV any day. I have the funds in a questrade TSFA account. It has a price/earnings ratio of $22.4 and a price/book ratio of $2.6. VFV belongs to the S&P 500 Index Fund. Is it smarter for me to convert this USD to CAD using Norbert’s Gambit and buy VFV or would it be better to stick with my USD and buy VOO? As close on January 31, 2020, it had a price/earnings ratio of $30 and a price/book ratio of $2.9. How is VFV's annual total return percentage lower than ZSP? Hi, I hope all is well. HXS has a management fee (MER) of 0.10%, and a swap fee of “no more than 0.30%.” So the total fees come out to a maximum of 0.40%. In this example, you’re saving 0.30% in taxes and paying 0.30% for the swap fee, so you break even. $29.2 is the price-to-earnings ratio and $4.5 is the price-to-book ratio. Also, the fund has a performance rating of 13.41% since its inception on October 20, 2011. I own VFV in my TSFA and RESP, but would it then be wise to own VOO (using Norbert’s Gambit) for my non-reg account as the tax credits would offset the currency change? Essentially what this strategy would do is attempt to buy USD when the CAD is strong, and sell USD when the CAD is weak. SPY is one of the best S&P 500 Index fund in the market. Thanks for the wonderful article, I am new to canada & investing and I am planning to invest in VFV in my TFSA account. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. I hold VFV in my RRSP. In fact I don’t think we have an unhedged Canadian dollar option either. Then, whenever you’ve built up a significant investment in VFV.CA, convert it to VOO. Conversely, if the American dollar strengthens relative to the Canadian dollar, your investment is worth more Canadian dollars. Again, by long term I mean the time range of anyway between 5 to 10 years at least due to its high volume, liquidity and more than twice the net assets compared to Vanguard’s VFV? I never thought about investment in my life , I am 60 now thinking to invest little I could before I retired. I would appreciate your comments and suggestions. Canada is a great country – arguably I think we have it the best in the world here! Unfortunately, the lower fees and tax advantages of U.S.-listed ETFs come at a cost. I have put together a list of the top five (+2 Bonus ETFs) best performing ETFs since inception if you are looking to invest in any of BMO’s ETFs. Unfortunately for Canadian investors though, our Canadian stock market is poorly diversified. Only developed countries are used for this build. First Prev. Tesla Vs. NIO: Which Stock Should You Buy? The most important things to conclude from this chart are the following: If you own a Canadian ETF with American ETFs or stocks in it in any registered account, you will always pay the 15% dividend withholding tax and it is not refundable, There are tax advantages for owning US listed ETFs rather than Canadian listed ETFs in an RRSP, RRIF, LIRA, LIF or LRIF. As far as currency hedging, you need to choose between VSP (hedged) and VFV (unhedged). (as you have a talent of explaining confusing financial topics very clearly). You can check our their fact sheets for a more detailed breakdown: Personally I’d go for XGRO because the MER is 0.05% lower, and I’d like a bit more allocation to US equities, but there’s a lot of personal preference here. It depends on the size of your account, but generally you’ll want your RRSP to be invested in American-listed ETFs. If you buy for the ask price or sell for the bid price you are “crossing the spread,” meaning you are overpaying by a couple cents a share for the convenience of fulfilling your order immediately. If you liked the content of this article and found it helpful, please share this post on social media and help spread the word. However, we can say that VSP is a safer investment for Canadians. Looks like you have a really solid portfolio in the works! Hey there, this was a really helpful article as well as your article on Norbert’s Gambit. Eventually you should incorporate bonds, Canadian equities, and international equities into your portfolio as well. Investment in this sector amounts to about 46% of the fund’s investments. It now shows a price paid in CDN$ and it is on the Canadian side of my account, but the shares were purchased on the US market. Great info. So I have a new version of the question: is it best to, in a non-registered account, just invest in the VSP for the entire position of holding a currency protected S&P 500 position in a long-term portfolio? Is there still a witholding tax (which can not be recovered)? I plan on holding a couple Canadian dividend stocks in my TFSA, and want to get exposure to the U.S market so I’m planning on holding VFV. What one would be the best and why? Your investment is worth the same in USD, but is now only worth CAD $100. 1. VFV will have a non-recoverable withholding tax on its dividends in an RRSP, because it’s a Canadian-listed ETF. Tfsa with Questrade too, but I recommend starting with Canadian Couch Potato at just 0.03 compared! Of North America listed ( Index ) net of expenses am # 31 ; curiousgeorge1000 OP! Significant investment in this RRSP generates even more complicated when a Canadian listed gold: NYSEARCA: Canadian. 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