Comparing Td Global tech etf to VUN.

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Hello, I’ve been a member for a few months now and really enjoy the site, thanks for the great work. I’m looking to invest in a Canadian etf that holds big US traded tech companies. How would you compare TEC.TO AND VUN.TO and do you suggest any other comparable etfs I should look into?

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Asked on November 1, 2020 7:23 am
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VUN definitely has more history. I mean it solely holds the underlying ETF VTI which has posted 10 year annual returns of 13.48%. That is some very strong returns over a decade long time horizon.

TEC seems to be more of a pure-play tech ETF, while VUN is heavy on tech, but provides more broad market exposure (through VTI of course).

We don't really look into too many ETF's. There are SO many products out there it is nearly impossible to pinpoint what is right for somebody.

But in the two that you showed me, the one that is going to get you more exposure to big US tech companies is definitely TEC.TO. Because it is more pure-tech, it does have a significantly lower dividend yield.

This is a very top heavy ETF, as 35% of the ETF is made up of Apple, Microsoft, Amazon and Facebook. As such, I'd expect more volatility. But, you'd also reap the potential rewards of continued strong performance by these companies.

It also has very little history, being formed just this year.

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Posted by Dan Kent
Answered on November 1, 2020 10:23 am