Q: Which fund would you put more money into as I have only enough money for 1 ETF. I currently owned both in a RRSP and ZAG is in a lost position so could average down or add to VEE as the upsize looked better for this ETF than ZAG?
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5i Research Answer:
Two very different options here. In a declining rate environment, ZAG should perform better and see appreciation in the portfolio of its holdings. VEE does have higher growth upside in general, but with much higher risk. Despite VEE having a higher expense ratio at 0.25% vs. ZAG at 0.09%, VEE has outperformed over essentially all timeframes. For this reason we would suggest VEE but it really depends on an investors goals/risk tolerance.