Vanguard S&P 500 Index ETF
VFV.TO (TSX)
Vanguard S&P 500 Index ETF (VFV) is an ideal choice for beginner investors looking to tap into the growth potential of the U.S. large-cap market. With a solid 1-year return of 9.70% and an impressive 5-year return of 97.42%, it offers broad exposure to financially healthy companies. Additionally, VFV features a dividend yield of 0.91%, making it a compelling option for those seeking steady income in a TFSA.
Pros:
- Broad exposure to U.S. large-cap stocks
- Strong historical returns
Cons:
- Lower yield compared to dividend-focused ETFs
- Market volatility risk
The Vanguard S&P 500 Index ETF (VFV.TO) is well-suited for investors seeking a low-cost way to gain exposure to the U.S. large-cap market, particularly those who are new to investing or looking for a diversified option with a reasonable dividend yield. With its strong historical performance and broad market exposure, it may also appeal to long-term investors aiming for capital appreciation alongside some income generation.
