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iShares S&P U.S. Mid-Cap Index ETF (XMC)
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Vanguard S&P 500 Index ETF (VFV)
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Vanguard U.S. Total Market Index ETF (VUN)
Q: Watching Bermans call. He suggests the midcap space in the US will flourish with Trump.
I have done quite well with VUN. What is your opinion re the large cap space vs the midcaps in the next 4 years.
Do you think this is so and with extra cash in my RRSP, would you just stick with the large cap ETF or go with the small cap ETF.
Which of the large cap ETF would you choose, VFV with a lower MER over VUN?
Is XMC your choice for the mid cap ETF?
Thanks
Jeff
I have done quite well with VUN. What is your opinion re the large cap space vs the midcaps in the next 4 years.
Do you think this is so and with extra cash in my RRSP, would you just stick with the large cap ETF or go with the small cap ETF.
Which of the large cap ETF would you choose, VFV with a lower MER over VUN?
Is XMC your choice for the mid cap ETF?
Thanks
Jeff
5i Research Answer:
We agree that the mid cap space is poised to do well, or at least better than it has for some time. We would cautious, though, against a wholesale switch from large cap to mid cap. Much can still go wrong, and smaller companies can be riskier, at least in terms of price volatility. But we would be comfortable owning both categories, and even selling some large cap for more mid cap exposure. VUN is a 'total market' ETF so if one wants to follow this strategy it makes more sense than VFV. For a Canadian traded midcap XMC would be our choice.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV.