Vanguard S&P 500 Index ETF
VFV.TO (TSX)
The Vanguard S&P 500 Index ETF (VFV) is an appealing choice for investors looking for a low-cost option to gain exposure to the U.S. market, boasting an impressive 1-year return of 15.25%. With a modest management expense ratio of just 0.09%, VFV has demonstrated resilience, rebounding strongly after market fluctuations and achieving a remarkable 100.27% return over the past five years. Additionally, it offers a dividend yield of approximately 0.91%, making it a well-rounded investment for both growth and income seekers.
Pros:
- Strong long-term performance
- Tracks a broad U.S. equity index
Cons:
- Market fluctuations can impact returns
- Dependence on U.S. market performance
The Vanguard S&P 500 Index ETF (VFV.TO) may be suitable for long-term investors seeking a low-cost way to gain diversified exposure to the U.S. equity market, particularly those who prioritize both capital appreciation and modest income generation through dividends. Its strong historical performance and low management fees further enhance its appeal for those looking to invest in a stable, growth-oriented fund.