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Comparing VFV ETF vs ZSP, VOO, SPY, VUN, XUU, XUS and More
What is VFV? Vanguard’s VFV ETF is a reliable and successful index fund that has proven to be quite profitable ever since its inception. Its success is mainly attributed to its approach, as it follows the S&P 500. Likewise, Vanguard S&P 500 ETF aims to follow the performance of a broad US equity index that measures the investment return of large-capitalization US equities. This Vanguard ETF currently aims to follow the S&P 500 Index, and become its successor. Putting it simply, VFV is a Canadian version of the S&P 500 and has shown similar success. What Type of ETF is VFV? VFV is Vanguard's Canadian counterpart of the famous S&P 500 ETF. Its stock is traded in Canadian dollars and is listed on the New York Stock Exchange. Furthermore, VFV is a type of ETF that, to a great degree, follows the performance of the S&P 500 Index before any costs and fees come into the picture. The VFV MER (Management Fee) is also quite low, sitting at 0.08%. What Holdings Are in VFV? As an ETF, VFV has allotted its capital to major companies, including big tech firms, banking organizations, and even consumer goods. Some major holdings included in VFV are: Apple Inc, Microsoft Corp, Amazon Inc, Facebook, Tesla Inc, NVIDIA Corp, Berkshire Hathaway, JPMorgan Chase & Co VFV Stock When it was initially introduced in 1976, the Vanguard S&P 500 Index Fund was the first index-tracking mutual fund. The fund, often represented by the VFV stock, owns the same stocks as the S&P 500 stock index in the same proportions. In fact, the stock companies in VFV account for 75% of the stock market's value in the US, making the index closely reflect the direction the US is headed in. Does VFV Pay Dividends? Yes, VFV pays dividends. Although they're generally paid out once every 12 months, these can be: MonthlyQuarterlySemi-annualYearly distributions The dividend, which generally includes interest, income, and/or capital gains, is given to investors who hold the fund on the date of the payouts. However, keep in mind that the VFV stock yield is rather low, accounting for around 1%. How to Purchase a Vanguard S&P 500 Index Fund? To invest in any of the VFV options, you must follow the steps we've explained below: Create an account on the website. Choose an account. i.e. individual, joint, or retirementFill out some basic info i.e. personal and financialDeposit money into your account: To finally invest in the index fund, consider making an online deposit to your account or send a check by mail. Minimum Deposit: Keep in mind that the Vanguard S&P 500 Mutual Fund has a $3000 minimum deposit, or $2000 if you buy it in an educational savings account. Automatic Purchases and Reinvestments: By connecting your bank account on your initial deposit, you can set up future automatic purchases and allowing you to invest with a click of a button. When investing in Vanguard, you should know that dividends and capital gains will often be automatically reinvested in the stock. Purchase Assets Using a CFD Broker: In addition to buying it directly from the Vanguard website, you can purchase S&P 500 assets by using a CFD broker like Fortrade. Although you won't have holdings in the company directly, you would still experience the same benefits, like a rise in profit and a dividend yield. Does VFV Have Fees? When it comes to ETF fees, Vanguard has traditionally been one of the lowest-cost ones. However, since financial services is a relatively competitive sector, Vanguard is now being challenged by corporations like Schwab for the crown of low-cost ETFs. Nevertheless, the charges are minimum: The Vanguard S&P 500 Mutual Fund: Has an expense ratio of only 0.14% ETF: The charges just 0.04 percent annually, Plus any applicable fees to purchase or sell, which are also minimal. Is VFV A Good Long-Term Investment? Yes, it can be concluded that the Vanguard VFV is a great choice if you want to diversify your stock portfolio, especially if you’re an investor looking forward to long-term gains. In fact, VFV has had a consistent rise in its price of at least 10% annually since its inception, making it a great choice for long-term investments. According to Reddit and Quora, VFV will probably continue its upward trend in the following years, as it has remained a reliable ETF throughout time. VFV vs ZSP Index Fund As they're similar index funds, both VFV and ZSP are tracking the US S&P 500 ETF, so they have had identical gains and losses over the years. Still, there are some minor differences. When comparing the prices of the individual stocks, VFV is approximately $100 per stock, whereas ZSP is cheaper, being around $60 per stock as of October 2021. Still, most evidence shows that VFV historically outperforms the ZSP, making it a better choice, even though ZSP is cheaper. VFV vs VOO Index Fund Similar to the ZSP and VFV, VOO attempts to mimic the success of the S&P 500 by investing in the same stock holdings. The only difference is that VOO is traded in US Dollars, and VFV is Canadian. Thus, investors from Canada should avoid purchasing VOO if they want to minimize their conversion fees (Canadian dollars to US dollars). Although VFV is cheaper, VOO's dividend payout is slightly larger, nearing 2%. VFV vs VSP ETF The VSP is the VFV with a Canadian dollar hedge, while it also follows the S&P 500. Many regard VSP as an excellent option, if you want your investment to be hedged against the CAD/USD exchange rate. Although the risks are smaller when hedging, keep in mind that you'll pay a small fee for hedging your position. Additionally, the VSP has a 0.09% MER (Management expense ratio) compared to 0.08% for VFV. VFV vs IVV ETF IVV is an iShares version of an S&P 500 index fund and is only accessible for buying and selling in US dollars. Other than being more expensive than VFV at around $400, the differences are minor. It’s a great choice, with an even smaller MER of 0.04%, and is expected to perform similarly to VFV. Still, fees for currency conversion must be considered, as IVV is traded solely in US dollars. Conclusion To summarize, Vanguard’s VFV ETF is a simple and quite successful index fund that does exactly what it says: it follows the S&P 500 and its success. It is one of the best options for investors looking forward to a reliable passive income, whether it's from dividends or capital gains. Additionally, Vanguard's VFV is one of the lowest-cost ETFs, so consider investing in it if you're up interested in a diversified portfolio with US large-cap stocks.
StocksFXAIX vs. VOO ETF Comparison: Fees, Performance, and RisksFor years, the go-to benchmark stock index had been the Dow Jones Industrial Average (DJIA). But, as the saying goes, this is no longer your grandfather's US stock market. Instead, all the hip investors are focusing their attention on the S&P 500, featuring the 500 largest U.S. publicly traded companies, weighted by market capitalization. This is now the gauge that financial analysts pay attention to. You can always invest in the S&P 500 to diversify your portfolio. But how? A couple of options: the Fidelity 500 Index Fund (FXAIX) and the Vanguard S&P 500 ETF (VOO). But in this FXAIX vs. VOO battle, which one should the investor select? It is best to compare before making that giant leap, even though FXAIX is a mutual fund and VOO is an ETF. Let's dive deeper into the FXAIX vs. VOO debate. How to Buy FXAIX Unsure where to start to buy the FXAIX mutual fund? We have compiled a step-by-step breakdown so that you know how to buy FXAIX: Start a brokerage or investment account and pick your account type (401(k) and an IRA).Research the large blend funds, such as the FXAIX expense ratio and the sales load.Purchase the amount of units based on how much you can afford.Establish your purchase plan (frequency, amount, dates, etc.).If applicable, decide your exit strategy. How to Buy VOO Essentially, as long as you have a trading account, whether with your financial institution (TD Ameritrade or Fidelity) or investment platform (Robinhood or Webull). All you need to do is find VOO on the list of securities and place a market order and insert the number of shares you want to acquire. Comparing FXAIX to VOO Fees of FXAIV vs. VOO For cost-conscious investors, the FXAIX Fidelity 500 Index Fund maintains a gross and net expense ratio of 0.015%. The FXAIX expense ratio is cheaper than the VOO net expense ratio of 0.03%. Fund Size Comparison When comparing the fund size between FXAIX vs VOO, there is quite a considerable gap in the size of total assets. Here is a breakdown between the two investments: VOO Number of Stocks: 507Fund Total Net Assets: $777.3 billionNet Assets of 10 Largest Holdings: 28.6% FXAIX Number of Stocks: 509Fund Total Net Assets: $364.995 billionNet Assets of 10 Largest Holdings: 27.36% Indeed, the liquidity levels of FXAIX and VOO are both strong, giving investors confidence that there are enough assets under management (AUM) in either index fund. Performance Comparison Is FXAIX a good investment? What about VOO? The answer to these questions is simple: Look at the performance levels! Here is how the two funds have performed over time: YTD FXAIX: +19.69%VOO: 20% Five Years FXAIX: 109.45%VOO: 109% The VOO / FXAIX vs S&P 500 performance has also been relatively the same. Risk Comparison According to the MorningStar figures (as of February 23, 2021), the Fidelity 500 Index Fund maintains a three-year risk rating of "Average" when compared to the broader large blend fund (1,254 funds). Meanwhile, the MorningStar risk ratings for the VOO ETF are the same: "Average." Which Is Better for Long-Term Investment? In the FXAIX vs VOO debate, the answer to which is the superior long-term investment depends on your trading acumen and your activity. If you are a passive "set it and forget it" investor, you could always go with the FXAIX mutual fund, especially considering that this investment vehicle has a lower expense ratio. Plus, if you hold a Roth IRA, FXAIX is the better long-term pick. That said, if you are an active investor, perhaps the ETF route is the better way to go. Moreover, VOO gives you a steady tax deduction should your shares fall. Conclusion: Which Should You Invest In? Many investors, young and old, have decided to go the ETF route. The exchange-traded fund market has skyrocketed into an $8.8 trillion global industry in the last few years. Still, mutual funds are a lot more lucrative: $55 trillion (as of the beginning of 2020). In the end, both FXAIX and VOO are great investments. If you are someone who likes a hands-on approach to their investments by actively managing the portfolio, VOO is a good option. At the same time, if you like something in your back pocket for a rainy day or your retirement, FXAIX is a prosperous choice, too.