Pennsylvania-based Vanguard Group is one of the world’s largest investment management companies. In all, it administers about $4 trillion U.S., spread across 370 mutual funds and ETFs.
Generally speaking, Canadians are unable to buy mutual funds that are registered in the U.S. unless those funds are also registered with provincial securities commissions. Moreover, some Canadian funds are only available in a limited number of provinces.
Canadians can, however, buy Vanguard exchange-traded funds listed on stock exchanges. Here are two ETFs we see as low-fee buys. One focuses on leading U.S. growth stocks, the other on emerging markets, with many top holdings in China.
VANGUARD GROWTH ETF $127.11 (New York symbol VUG; buy or sell through brokers) aims to track the Center for Research in Security Prices (CRSP) U.S. Large Cap Growth Index. It’s a broadly diversified index that consists mainly of big U.S. companies.
The $64.4 billion fund holds Apple, Alphabet, Amazon. com, Facebook, Coca-Cola, Comcast, Home Depot and Visa. Its other top holdings include Philip Morris International, Walt Disney and McDonald’s. Vanguard launched the ETF on January 26, 2004. Its MER is just 0.08%.
The fund’s breakdown by industry is as follows: Technology, 26.5%; Consumer Services, 21.4%; Health Care, 13.2%; Financials, 12.3%; Industrials, 11.3%; Consumer Goods, 11.1%; Oil and Gas, 2.8%; Materials, 1.0%; and Telecom Services, 0.4%.
Recommendation in Canadian Wealth Advisor: Vanguard Growth ETF is a buy.
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ETFs: Stocks from China and Taiwan prominent in ETF’s top holdings
VANGUARD FTSE EMERGING MARKETS ETF $40.95 (New York symbol VWO; buy or sell through brokers) aims to track the Financial Times Stock Exchange (FTSE) Emerging Markets Index. It’s made up of the common stock of companies in developing countries. The ETF was launched on March 4, 2005. Its MER is 0.14%.
The top holdings of Vanguard FTSE Emerging Markets include Tencent Holdings (China: Internet), Taiwan Semiconductor Manufacturing (computer chips), Naspers Ltd. (South Africa: media), China Construction Bank Corp., China Mobile Ltd., Industrial & Commercial Bank of China, Hon Hai Precision Industry Co. (Taiwan: electronics), Bank of China, and Housing Development Finance Corp. (India: finance).
The breakdown by country for this $75.8 billion fund is as follows: China, 27.9%; Taiwan, 15.7%; India, 12.2%; Brazil, 8.4%; South Africa, 7.8%; Mexico, 4.1%; Russia, 4.0%; Thailand, 3.8%; Malaysia, 3.4%; Indonesia, 2.7%; Philippines, 1.5%; Poland, 1.5%; Chile, 1.5%; and others, 5.5%.
Recommendation in Canadian Wealth Advisor: Vanguard FTSE Emerging Markets ETF is a buy for aggressive investors.
For our views on getting the best possible returns with exchange-traded funds, read Follow this successful ETF strategy for maximum returns.
For our recent report on one of the safest ways to invest in the best foreign stocks, read Two ETFs are a ticket to strong overseas investing.
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