Q: Hi , what is the difference between VFV and VOO. Is one safer then the other?
Thanks. Alnoor
Thanks. Alnoor
5i Research Answer:
Both follow the same index and can be considered equivalent. VOO trades in the US, is larger, and has lower fees (0.03% vs 0.09%). VFV is Canadian based and thus does not have to be reported for foreign securities reporting purposes. VOO would be marginally more efficient for withholding taxes, but would get captured under US estate taxes (only applicable if a Canadian investor has substantial US assets, in the $10M+ range).
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.