Q: Mr Warren Buffet has recently sold his entire positions in SPY and VOO.. Can you explain or help rationalize this move?
I currently hold VOO. Would you consider these ETFs a BUY/HOLD/SELL?
Thank you for your time. Cheers
I currently hold VOO. Would you consider these ETFs a BUY/HOLD/SELL?
Thank you for your time. Cheers
Q: What is your opinion of this ETF? The performance history is really good beating the S&P and others over the last 10 years. They have had a couple of splits in the past and hold about 235 stocks in total. I looked at the top holdings and they are almost the same as the VOO /VFV. Would this be a good sub for the VFV or VOO? The price per unit is low
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BMO MSCI USA High Quality Index ETF (ZUQ)
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BMO S&P 500 Index ETF (ZSP)
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iShares Core S&P 500 Index ETF (XUS)
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Vanguard S&P 500 Index ETF (VFV)
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Vanguard S&P 500 ETF (VOO)
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ISHARES TRUST (IUSG)
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iShares Core S&P 500 ETF (IVV)
Q: Hello Peter and 5i Team! it is an RESP account.
A new granddaughter born this year has a tiny new RESP in her name. It started with 3 shared of IUSG, and then, realizing that commissions were a large percentage of such small purchases, we added 2 shares of ZUQ, which has no commission.
For future small contributions, I am looking at these 4 ETFs, based on 3-year average annual return. I am specifically wondering about MER vs Tax efficiency:
ZUQ: +13.44%/yr, MER=0.33%, yield=0.60%, holds US stocks directly
VFV: +13.36%/yr, MER=0.09%, yield=0.99%, holds US stocks indirectly through VOO
XUS: +13.36%/yr, MER=0.09%, yield=1.03%, holds US stocks indirectly through IVV
ZSP: +13.30%/yr, MER=0.09%, yield=0.94%, holds US stocks directly
(as far as I know, none of these are hedged)
Generally I gravitate to low MERs, so perhaps ZUQ is not the best choice.
I recall a comment on 5i that the indirect holding of US stocks means that the withholding tax is withheld when the underlying US ETF pays dividends to the Canadian holding ETF (e.g. VFV get the dividend from VOO, less 15%). So holding in a TFSA won't avoid it, whereas it would be avoided with, say, ZSP in a TFSA.
So, my question is: do the 3-yr performance numbers take all of this into account? I am guessing not... withholding tax efficiency depends on the holders nationality, sheltered status, etc.
Bottom line - which of these ETFs would you recommend for a grandchild with a time horizon of many decades, for optimal performance?
Thanks for your excellent insights and wisdom!
A new granddaughter born this year has a tiny new RESP in her name. It started with 3 shared of IUSG, and then, realizing that commissions were a large percentage of such small purchases, we added 2 shares of ZUQ, which has no commission.
For future small contributions, I am looking at these 4 ETFs, based on 3-year average annual return. I am specifically wondering about MER vs Tax efficiency:
ZUQ: +13.44%/yr, MER=0.33%, yield=0.60%, holds US stocks directly
VFV: +13.36%/yr, MER=0.09%, yield=0.99%, holds US stocks indirectly through VOO
XUS: +13.36%/yr, MER=0.09%, yield=1.03%, holds US stocks indirectly through IVV
ZSP: +13.30%/yr, MER=0.09%, yield=0.94%, holds US stocks directly
(as far as I know, none of these are hedged)
Generally I gravitate to low MERs, so perhaps ZUQ is not the best choice.
I recall a comment on 5i that the indirect holding of US stocks means that the withholding tax is withheld when the underlying US ETF pays dividends to the Canadian holding ETF (e.g. VFV get the dividend from VOO, less 15%). So holding in a TFSA won't avoid it, whereas it would be avoided with, say, ZSP in a TFSA.
So, my question is: do the 3-yr performance numbers take all of this into account? I am guessing not... withholding tax efficiency depends on the holders nationality, sheltered status, etc.
Bottom line - which of these ETFs would you recommend for a grandchild with a time horizon of many decades, for optimal performance?
Thanks for your excellent insights and wisdom!