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Vanguard S&P 500 Index ETF (VFV)
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Invesco S&P 500 Equal Weight Index ETF (EQL)
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Invesco S&P 500 Equal Weight Index ETF (EQL.F)
Q: Looking to add S&P 500 exposure in my portfolio through one of 3 ETF's;
VFV or EQL hedged or not hedged. Normally would prefer unhedged but with our low dollar may be some merit in selecting a hedged version of EQL.
What would you recommend and could you please provide some rationale for your recommendation. Thanks.
VFV or EQL hedged or not hedged. Normally would prefer unhedged but with our low dollar may be some merit in selecting a hedged version of EQL.
What would you recommend and could you please provide some rationale for your recommendation. Thanks.
5i Research Answer:
VFV has performed well up ~20% year-to-date and has a low MER at 0.09%. EQL has done decently this year up ~7% year-to-date but has a higher MER at 0.26%. The performance difference is largely due to EQL being equally weighted while VFV is not. When considering the hedged version of EQL this normally depends on investor's personal preference and we normally lean on the side of unhedged products due to the difficulty of currency predictions. We are fine with either but would prefer VFV over EQL due to the better performance and lower fee.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.