Q: Would like to add to my holdings a well diversified growth ETF for a long term hold (10 years+). Have $25,000 to invest in my current $2 million portfolio of equities (20) and ETFs (5)
I am considering FCUV . Your comments on this ETF would very much be appreciated. Also is there any other ETF you would recommend .
I am considering FCUV . Your comments on this ETF would very much be appreciated. Also is there any other ETF you would recommend .
5i Research Answer:
FCUV is a US Value ETF through Fidelity. It has performed well, it has a decent AUM of $517M, and an MER of 0.39%, but conversely to a growth factor, it focuses on value stocks.
In Canada, there is the Vanguard Growth ETF (VGRO) which has an 80/20 split between stocks and bonds, and it holds a variety of geographies, including Canadian stocks. Its five-year CAGR is 8.8%.
Alternatively, there is the Vanguard Growth ETF (VUG) which has a better AUM and MER than FCUV and VGRO, and it holds mostly US stocks. It has a five-year CAGR of 19%, but it is mostly focused on US names, although diversified across sectors.
Overall, for a long-term hold and a growth tilt, we would prefer VUG.