ETF for S&P 500

Thanks Dan
Can you please clarify the returns which of these ways should I be calculating?

If you look at the chart and see 322% since 2014 let's say 7 years.
Is it 322/7 = 46% yearly return
or should it be 222/7=31% yearly return (taking out initial 100% not sure which is right)

https://www.vanguardcanada.ca/advisors/mvc/loadImage?country=CAN&docId=550

If I look at this fund sheet it doesn't have a 7 year return but for 5 years it shows is that 16% a year? or total over 5 years?

I don't understand the return of these funds that is why I stopped using them.

Can you please clarify which of these options is correct or maybe it is a completely different way to understand?

Thanks!

Hey there! Well, investing 100% into the S&P 500 exposes your whole portfolio to equities, and also to the United States.

It's a strategy that would have worked well in the past, but is not guaranteed to work so well in the future. You do gain exposure to the 500 largest companies in the United States, but you also lack exposure anywhere else.

These ETFs should be used as a piece in a well diversified portfolio.

These returns form that chart are amazing! After seeing this why would I invest in anything other than these funds? Is there any catch I am missing?

Thank you Dan!

Converting to USD adds a couple other elements.

The ETFs are in your RRSP, so withholding tax shouldn't be an issue, but that should be checked ETF specific.

Then there is currency conversion. Right now, the Canadian Dollar is at a 6 year high. So realistically, now is as good of a time as any in the last 5 years to convert CAD to USD and buy USD listed funds. If the dollar falls, you'll realize forex gains and if the dollar rises, you'll realize forex losses.

In terms of US listed funds, it's really hard to argue with SPY, IVV and VOO.

Thanks Dan. If I convert my CAD to USD, will I have better ETF options than the above two? (For a long term hold in an RRSP)

Well if you want exposure in CAD, you definitely won't get a US listed ETF.

In my eyes, you've got a couple clear cut options when it comes to Canadian dollar S&P 500 funds. They're both pretty much the same, it's just the management of the fund.

So, the Vanguard fund is VFV.

BMO's product is ZSP.

Returns between both (I've attached a chart below) are practically the same.

I want exposure to S&P in Canadian dollars (ideally)

US Listed

Thanks!

Hey there! Before I answer this, let me know if you're looking for Canadian listed or US listed. It does make somewhat of a difference. Do you want to buy exposure to the S&P in US dollars, or Canadian dollars.