Should I invest in VFV or ZSP ETF?

Asked 3 years ago

VFV vs ZSP? I know both funds track S&P 500 index, is there an advantage in holding one over the other?

Andrew Moran

Monday, November 15, 2021

After comparing the two, I think the better pick would be ZSP.

Not only would the initial investment be less ($56 compared to $91), the quarterly dividends are quite good as the most recent payment was 18 cents.

The composition is nearly identical. VFV invests 99.9% into VOO (Vanguard S&P 500 ETF). The top five holdings are Apple, Microsoft, Amazon, Facebook, and Alphabet. It is the same for ZSP, plus or minus a few percentage points of these stocks.

The net expense ratios are 0.08% and 0.09%, respectively.

Ultimately, you want to get more for less, so ZSP would be the superior option.

Andia Rispah Igobwa

Sunday, November 28, 2021

To answer your question, let's first recap a few basics about VFV.

The VFV ETF from Vanguard is a solid and successful index fund that has shown to be quite lucrative since its inception. Its success is primarily due to the way it approaches things, as it follows the S&P 500.

The Vanguard S&P 500 ETF, for example, tracks the performance of a broad US equity index that measures investment return in large-capitalization US equities.

What kind of ETF is VFV?

VFV is Vanguard's Canadian counterpart of the famous S&P 500 ETF. It is also known as the "S&P 500 equivalent" in Canada. Its stock is traded in Canadian dollars and is listed on the New York Stock Exchange.

It's also a type of EFT which follows the performance of the S&P 500 Index before any costs or fees. Its management fee is relatively low at 0.08%.

What Do VFV Holdings Include?

VFV holdings include big tech firms, banking organizations, and consumer goods such as; Apple Inc, Amazon Inc, Microsoft Corp, Facebook, Tesla Inc, Berkshire Hathaway, JPMorgan, NVIDIA Corp, and Chase & Co.

VFV Stock

The first index-tracking mutual fund, the VFV stock, was formed in 1976. The stock represented the VFV stock in the same proportions as the S&P 500 stock index. The VFV comprises significant holdings from small and mid-size companies, which make up 75% of the stock market's value in the United States.

Does VFV pay dividends?

Yes, however, they're generally paid out once every 12 months, either: Monthly, Quarterly, Semi-annually or annually.

Dividend generally includes interest, income, and/or capital gains. The fund's payout is paid out to investors who have the fund as of the payout date. However, VFV's stock yield is relatively low at just 1%.

Does VFV Have Fees?

Vanguard has been one of the lowest-cost ones. However, the financial services being a relatively competitive sector, Schwabs is their biggest challenge with its crown of low-cost ETFs.

That said, the charges are still minimum:

  1. The Vanguard S&P 500 Mutual Fund: Has an expense ratio of only 0.14%
  2. ETF: The charges are just 0.04% annually
  3. Applicable fees to purchase or sell are also minimal.

Should I invest in the Vanguard VFV?

The answer to this question depends on your investment goals. If you're looking for a good long-term investment, VFV is a great choice.

People choose to invest in VFV because it has consistently risen over 10% annually since its inception and can be used as an alternative asset class when diversifying stock portfolios.

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.

If you're an investor that wants long-term gains from your investments with minimal risks, then investing in VFV might be worth considering.

VFV vs ZSP Index Fund - Which is better?

When comparing two index funds, it can be challenging to decide which one is better.

VFV and ZSP are both index funds that track the US S&P 500 ETF, so they have had identical gains and losses over the years. Still, there are some minor differences between them.

As of October 2021, ZSP was cheaper than VFV by approximately $100 per stock.

However, most evidence shows that VFV historically outperforms the ZSP, making it a better choice even though it's more expensive.


Now that you know all the reasons why Vanguard's VFV is a great investment, it's time to make your decision.

But before investing in any of these ETFs, you should consider some factors that can affect your investment results. For example, how likely are dividends to increase? How much volatility are you willing to accept? Do you want more diversification or less?

Depending on your answers and goals, one of these could be a better option for you than the other two.

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