Buying stocks might seem easy, but picking the right one without a solid plan is tough. I've been trying to grow my $100K portfolio, but the tricky part is not having clear plans for when to buy and sell. Any tips on this would really help.
Thank you for specifically talking about VFV and it’s history. I have been on the dividend side of stocks, but now just switching to a much more simpler, long term goal with this ETF. There’s still a lot to learn! 🙏
What about vfv’s tax efficiency in a non-registered account? Is there a bed free suggestion for tax efficiency? My tfsa and rsp accounts have no contribution room left. Thanks?
Thanks for the video! Question about your VFV vs. VOO comparison at 4:55. Within the context of RRSP, is it not better to buy VOO over VFV to avoid the 15% US withholding dividend tax? Assuming of course that the Norbert Gambit technique is used to avoid the typical 2% US-CAD currency conversion fee.
Yes, if you're willing to execute Norbert's Gambit VOO should theoretically outperform VFV in the long run. I guess my point was that if it's not a significant sum of money (over 20K) I probably wouldn't bother and just buy VFV. A lot of people find Norbert too complicated and just want a simpler solution.
Great question Vincent, it boils down mostly to personal preference and what your time horizon of investing is. If you want exposure to U.S currency you should buy VFV, if you don't want exposure buy VSP. Foreign exchange rates between two countries are extremely difficult to predict, so it's basically a coin flip in the long-term as to which will outperform the other. In the short-term, the fluctuations in currency can make a big difference to your returns. (compare the last 5 year returns of each ETF and you can see that!)
Hi Chris - I hold VOO in my TFSA and RRSP using Norbert's Gambit. I recently opened RESP for my child and am holding VOO as well, however just came to realize that Questrade charges charges flat $5 commission per day for US Security trades in RESP accounts. Now I am thinking of holding/keeping the VOO as is and start buying VFV moving forward for the RESP. Just wanted to get your thoughts. Thanks again.
If you already setup Norbert's Gambit and are comfortable with it, I think over the long-term of 18 years that you will have until you withdraw will make it worth it to stick with VOO. The fees are slightly lower than VFV so that should make up for the commission fees and then some
Hey Charles, they are pretty much the same, they track the same index and are both not CAD hedged, so you're going to see almost identical performance. You can't go wrong with either, and both make my list of the best S&P 500 ETFs here: wealthawesome.com/best-sp-500-etf-in-canada/
@@WealthAwesome can you explain how compounding works on s&p500. Let’s say I bought 10 shares at 100$ each, total 1000$. 1 year later it goes up by 10% so now my shares are worth 1100$, how am I suppose to reinvest that 100$ without selling my shares? It’s not like I get that 100$ by interest or dividends.
VFV is very interesting but I would like to know how the treaties work when it comes to dividends. Can I use a TFSA account without having my dividends taxed even thought it’s technically a Canadian ETF 🤔?
There's not really a great way around witholding taxes for dividends, unless you buy US listed ETF in your RRSP: check out this Vanguard doc for more info www.vanguardcanada.ca/documents/impact-of-withholding-taxes.pdf
Hi! Great video. I'm a massive overthinker, and I understand the 15% witholding tax on VFV in my RRSP, I'm 28 and plan to hold for a long time, so I'm kind of just wanting to simplify the exposure to the S&P500, using wealthsimple I understand I can purchase fractional shares, does this apply if my dividends are reinvested into VFV (15% tax), or should I just go into VOO.. again, I'm really just wanting to simplify my exposure here, and this is for a very long term hold of course. Thanks in advance!
Yes, it would be a huge hassle to buy the entire S&P 500 as individual stocks. You'd have to buy over 500 stocks. VFV is a much simpler way to access that.
Hey justin, great question! I do think this is a great strategy if you're in it for the long run. In the long run, VOO should outperform VFV due to the lower fees and no dividend witholding tax in your RRSP. See this answer in this link here for more details: www.theglobeandmail.com/investing/education/article-watch-out-for-tax-traps-with-us-index-funds/
Hi. May I know why is the difference price gap between TSE:VFV = CAD89.93 and NYSE:VOO = USD360.61? Will we be getting the same dividend before cost if we buy one unit of each ETF ? Please advise. Thank you.
Good question - basically, they trade on entirely different markets so their prices will not be related at all, even though they invest in essentially the same thing. There will be differences in yield, due to currency effects, and tax effects (witholding taxes) - if you want simplicity, invest in VFV over VOO. But if you're willing to do Norbert's Gambit, try out VOO
yeah this kind of makes sense, there's no overlap. But it's a really aggressive portfolio, with no fixed income. make sure it suits your risk tolerance levels and investment goals.
@@WealthAwesome that's the answer im looking for. bonds are against my religion, fixed income, securities, GIC, profiting on money borrowed. im ok with that.
I am interested in investing RRSP sheltered funds in this ETF. What is the simplest way to do so? Is there a way to move them to Wealthsimple and keep them RRSP sheltered and then purchase the ETF myself? Thanks.
Yes, you can open an RRSP account buy it in Wealthsimple Trade. If you already have an RRSP, that's ok you can open multiple ones, just make sure you don't go over your limit. You can also transfer your RRSP into Wealthsimple. Check out this link for a $50 signup bonus: wealthawesome.com/recommends/wealthsimple-trade
VSP is the same as VFV, except it is hedged to the Canadian dollar. This means that there will be no currency risk when you use VSP, but with VFV you are exposed to the fluctuations of the Canadian to US dollar exchange rate.
@@WealthAwesome bought 100 shares of VFV. This is one ETF i am excited to own and hold forever. Plus Tesla will join the S&p 500 on dec 21st. Making me part owner of tesla lol.
If we invest out of the RRSP or TFSA, is there a way we can get the dividend withholding tax back when we file, or is that just for taxable accounts? If we can't recover it, is that 15% withholding tax on dividends enough of a deterrent to keep us out of this ETF?
No you can't get that tax back from your TFSA, it's deducted at source. I don't think it's too bad, it's 15% of the dividend tax, but the dividend is fairly low, so it's a fraction of a percent every year. Your other option is to put it in your RRSP, where there isn't that 15% tax.
Hi . So do we have to pay the 15% percent withholding tax for the dividends earned by investing in this ETF in TFSA ? Is there any difference in buying this ETF with questrade or wealthsimple ? Thanks in Advance 😌
Yes, the 15% withholding tax is deducted at source so you don't physically have to pay it. No there isn't any difference, other than Wealthsimple won't charge you a trading fee if you sell it on their platform, but Questrade will charge you.
Hello sir! I am looking at vfv from almost 2 months now. I want to know if i set up initial investment of $1000 and then i add $500 every month until 30 years just in vfv 500 s&p index etf. What are the chances that it can end up crashing in between 30 years or it can go undervalued a lot! Please reply me if you see this sir! It would be a really great help PS- I am thinking to put all my monthly investment in tfsa account. Also please explain if it’s better with rrsp Thanks
If I buy VOO I need to convert my currency to USD, so who pays the currency conversion fees when I buy VFV which holds US companies? my broker(questrade)? Is it part of the MER?
hey yeah exactly so for example Questrade would convert your money for a fee into USD and hold it in a USD account. Then you can buy and sell stocks in that account without any more conversion fees. It's the main reason why I don't recommend Wealthsimple Trade for US stocks, because they incur a conversion fee every single trade (they don't have US Dollar accounts, but I talked to them and they are expecting to release one later this year)
@@WealthAwesome yes thank you, but if I buy VFV which is in CAD, it holds US companies. who pays that exchange fee...someone has to. Is it Questrade or is it included in the MER?
I’m living in Canada now with plans to leave possibly in the future. Would it be best to avoid an RRSP for now and invest in my tfsa? I also plan on retiring early... and an rrsp will punish me for that
When in doubt, I always default to using the TFSA first. It's way more flexible and transparent than the RRSP. In your situation it sounds like that is also the case.
You can come up with your own strategy, but I always stay invested. I prefer the set-and-forget approach, it's stressful to try to jump in and out of the stock market.
@@WealthAwesome This is exactly what I was alluding to re: my question and keeping things simple. I'm holding VFV, VCN, VIU, and VEE in my RRSP. I'm moreso counting on capital growth over dividends with these etfs. My TFSA imo should be where I let my dividends compound, ie: Canadian bank ETFs such as ZEB or HCA etc, and other high yield companies from each sector such as Enbridge, Telus.. you get my point I'm sure lol.
Buying stocks might seem easy, but picking the right one without a solid plan is tough. I've been trying to grow my $100K portfolio, but the tricky part is not having clear plans for when to buy and sell. Any tips on this would really help.
The strategies are tough for average people. They're usually done well by experts with lots of skills and knowledge.
@@VioletJessica- Mind if I ask you to recommend this particular coach you using their service?
Buy VFV, accumulate VFV, hold VFV, DRIP VFV and you will get rich.
Thank you for specifically talking about VFV and it’s history. I have been on the dividend side of stocks, but now just switching to a much more simpler, long term goal with this ETF. There’s still a lot to learn! 🙏
Hey Maria, that's great to hear! Yes that's the greatest thing about ETFs, is it provides a simpler diversified solution to investing.
If you like buffet get vfv if you like Bogle get xuu. Both will have almost same returns so don't overthink it
Thanks!
Thank you! The video I was looking for that answered all my questions! You rock, subscribed!
Glad to hear it! Check out the recent one on the best HISA ETFs as well!
Great content man, but maybe use a better recording setup? Sounds echoey and pretty distant.
Will keep in mind!
IVV is a u.s share there would be a conversion fee that would blunt your gains
yes this is true, plus you would be exposed to more currency risk as well. thanks joseph.
What about vfv’s tax efficiency in a non-registered account? Is there a bed free suggestion for tax efficiency? My tfsa and rsp accounts have no contribution room left. Thanks?
Thanks for the video!
Question about your VFV vs. VOO comparison at 4:55. Within the context of RRSP, is it not better to buy VOO over VFV to avoid the 15% US withholding dividend tax? Assuming of course that the Norbert Gambit technique is used to avoid the typical 2% US-CAD currency conversion fee.
Yes, if you're willing to execute Norbert's Gambit VOO should theoretically outperform VFV in the long run. I guess my point was that if it's not a significant sum of money (over 20K) I probably wouldn't bother and just buy VFV. A lot of people find Norbert too complicated and just want a simpler solution.
Since VSP is hedged against currency risk, why would anyone choose to buy VFV over VSP as they both track the same index?
Great question Vincent, it boils down mostly to personal preference and what your time horizon of investing is. If you want exposure to U.S currency you should buy VFV, if you don't want exposure buy VSP. Foreign exchange rates between two countries are extremely difficult to predict, so it's basically a coin flip in the long-term as to which will outperform the other. In the short-term, the fluctuations in currency can make a big difference to your returns. (compare the last 5 year returns of each ETF and you can see that!)
I had the same question!
I got a portion of my funds in this Vanguard index. ;)
great minds think alike!
Hi Chris - I hold VOO in my TFSA and RRSP using Norbert's Gambit. I recently opened RESP for my child and am holding VOO as well, however just came to realize that Questrade charges charges flat $5 commission per day for US Security trades in RESP accounts. Now I am thinking of holding/keeping the VOO as is and start buying VFV moving forward for the RESP. Just wanted to get your thoughts. Thanks again.
If you already setup Norbert's Gambit and are comfortable with it, I think over the long-term of 18 years that you will have until you withdraw will make it worth it to stick with VOO. The fees are slightly lower than VFV so that should make up for the commission fees and then some
Would greatly appreciate it if you can clarify which one is a better option between vfv and zsp. It seems as though they are pretty identical.
Hey Charles, they are pretty much the same, they track the same index and are both not CAD hedged, so you're going to see almost identical performance. You can't go wrong with either, and both make my list of the best S&P 500 ETFs here: wealthawesome.com/best-sp-500-etf-in-canada/
@@WealthAwesome can you explain how compounding works on s&p500. Let’s say I bought 10 shares at 100$ each, total 1000$. 1 year later it goes up by 10% so now my shares are worth 1100$, how am I suppose to reinvest that 100$ without selling my shares? It’s not like I get that 100$ by interest or dividends.
Is the only way to make money from owning VFV the dividend and selling it when the price goes up?
yes those are the two potential ways
I will come back to this comment in 35 years and check the performance of vfv
Haha that would probably be a great strategy to be honest, most people are too reactive to news.
You forgot to mention what accounts these are good in RRSP TFSA ?
Yes it's good in both those accounts! I prefer the TFSA over RRSP if you have the room usually.
VFV is very interesting but I would like to know how the treaties work when it comes to dividends. Can I use a TFSA account without having my dividends taxed even thought it’s technically a Canadian ETF 🤔?
There's not really a great way around witholding taxes for dividends, unless you buy US listed ETF in your RRSP: check out this Vanguard doc for more info www.vanguardcanada.ca/documents/impact-of-withholding-taxes.pdf
I'm definitely looking at grabbing some of this. This seals it.
One of my favorites
Has it been working out for you?
Hi! Great video. I'm a massive overthinker, and I understand the 15% witholding tax on VFV in my RRSP, I'm 28 and plan to hold for a long time, so I'm kind of just wanting to simplify the exposure to the S&P500, using wealthsimple I understand I can purchase fractional shares, does this apply if my dividends are reinvested into VFV (15% tax), or should I just go into VOO.. again, I'm really just wanting to simplify my exposure here, and this is for a very long term hold of course. Thanks in advance!
is there any reason not to just buy the s&p 500 instead of the VFV? Using a TFSA.
Yes, it would be a huge hassle to buy the entire S&P 500 as individual stocks. You'd have to buy over 500 stocks. VFV is a much simpler way to access that.
I really like your content, please up you audio quality tho, makes it hard to listen to at times.
Hey Nick, this was one of my older videos, check out my newer videos I have a much better audio setup!
What is you thoughts on investing in VOO by using the Norberts Gambit to convert CAD to USD and eliminating foreign withholding tax?
Hey justin, great question! I do think this is a great strategy if you're in it for the long run. In the long run, VOO should outperform VFV due to the lower fees and no dividend witholding tax in your RRSP. See this answer in this link here for more details: www.theglobeandmail.com/investing/education/article-watch-out-for-tax-traps-with-us-index-funds/
@@WealthAwesome that is a great article thank you very much
VFV vs IVV: Is IVV similar to VOO? Both are quoted in USD.
IVV is iShares, and in USD. VFV is Vanguard, and in CAD. Both track the S&P500
Hi.
May I know why is the difference price gap between TSE:VFV = CAD89.93 and NYSE:VOO = USD360.61?
Will we be getting the same dividend before cost if we buy one unit of each ETF ?
Please advise. Thank you.
Good question - basically, they trade on entirely different markets so their prices will not be related at all, even though they invest in essentially the same thing. There will be differences in yield, due to currency effects, and tax effects (witholding taxes) - if you want simplicity, invest in VFV over VOO. But if you're willing to do Norbert's Gambit, try out VOO
going into vfv in 2021, I cashed out some of my stocks and need to park it here lol.
Nice move!
Would this etf be fine in a personal account? My tfsa and rrsp are maxed
It would be. The dividends would be taxed like any non-registered account then, and capital gains as well.
@@WealthAwesome the dividend is paid in CAD? Is there a US with holding tax?
Thanks for the awesome info. Do you use TFSA for your investment portfolio or RRSP?
Both! I've maxed out my TFSA with investments and invest in my RRSP as well.
vfv and xdiv in tfsa, does that make sense?
vfv all us companies (tech)
xdiv all cdn companies.
yeah this kind of makes sense, there's no overlap. But it's a really aggressive portfolio, with no fixed income. make sure it suits your risk tolerance levels and investment goals.
@@WealthAwesome that's the answer im looking for. bonds are against my religion, fixed income, securities, GIC, profiting on money borrowed. im ok with that.
@@WealthAwesome I want to ask where you find whether the stock or etf is involved with bonds/fixed income?
I am interested in investing RRSP sheltered funds in this ETF. What is the simplest way to do so? Is there a way to move them to Wealthsimple and keep them RRSP sheltered and then purchase the ETF myself? Thanks.
Yes, you can open an RRSP account buy it in Wealthsimple Trade. If you already have an RRSP, that's ok you can open multiple ones, just make sure you don't go over your limit. You can also transfer your RRSP into Wealthsimple. Check out this link for a $50 signup bonus: wealthawesome.com/recommends/wealthsimple-trade
Hello, great video and analysis. I just have one question however. What is the difference between VFV and VSP?
VSP is the same as VFV, except it is hedged to the Canadian dollar. This means that there will be no currency risk when you use VSP, but with VFV you are exposed to the fluctuations of the Canadian to US dollar exchange rate.
@@WealthAwesome US Currency will go down next year. If my prediction is right, do you think VSP is a better choice?
Great breakdown analysis of VFV
thanks Niran! I'm glad you liked it.
@@WealthAwesome bought 100 shares of VFV. This is one ETF i am excited to own and hold forever.
Plus Tesla will join the S&p 500 on dec 21st. Making me part owner of tesla lol.
i ended buying anothert 20 shares of VFV for a total of 120 or 10,ooo$ and i hold my VFV under the TFSA. hopefully this is an excellent strategy
planning to invest $20000 in VFV , what do you think in VFV?
It depends on your unique risk tolerance, but VFV is a great choice for many people.
If we invest out of the RRSP or TFSA, is there a way we can get the dividend withholding tax back when we file, or is that just for taxable accounts? If we can't recover it, is that 15% withholding tax on dividends enough of a deterrent to keep us out of this ETF?
No you can't get that tax back from your TFSA, it's deducted at source. I don't think it's too bad, it's 15% of the dividend tax, but the dividend is fairly low, so it's a fraction of a percent every year. Your other option is to put it in your RRSP, where there isn't that 15% tax.
Turn a DRIP on?
Hi . So do we have to pay the 15% percent withholding tax for the dividends earned by investing in this ETF in TFSA ?
Is there any difference in buying this ETF with questrade or wealthsimple ? Thanks in Advance 😌
Yes, the 15% withholding tax is deducted at source so you don't physically have to pay it. No there isn't any difference, other than Wealthsimple won't charge you a trading fee if you sell it on their platform, but Questrade will charge you.
@@WealthAwesome Thanks again for the explanation :)
Hello sir! I am looking at vfv from almost 2 months now. I want to know if i set up initial investment of $1000 and then i add $500 every month until 30 years just in vfv 500 s&p index etf. What are the chances that it can end up crashing in between 30 years or it can go undervalued a lot! Please reply me if you see this sir! It would be a really great help
PS- I am thinking to put all my monthly investment in tfsa account. Also please explain if it’s better with rrsp
Thanks
Look up the history of the S&P500, it's easy to find. TFSA is a great place for investments if you're not sure where to start
I bought voo for 460 cad dollars. Is it a good buy for retirement .
Sure, that's the american version of this etf
Excellent video. Thank you!
Glad it was helpful!
Another great explanation
Glad you think so!
Great info as always!
Thanks again!
Should i hv VFV in my TFSA or a non-registered account?Thanks
Both are fine really, the dividends aren't too huge that it will be a large tax hit in a non-reg.
Thanks for this!
My pleasure!
If I buy VOO I need to convert my currency to USD, so who pays the currency conversion fees when I buy VFV which holds US companies? my broker(questrade)? Is it part of the MER?
hey yeah exactly so for example Questrade would convert your money for a fee into USD and hold it in a USD account. Then you can buy and sell stocks in that account without any more conversion fees. It's the main reason why I don't recommend Wealthsimple Trade for US stocks, because they incur a conversion fee every single trade (they don't have US Dollar accounts, but I talked to them and they are expecting to release one later this year)
@@WealthAwesome yes thank you, but if I buy VFV which is in CAD, it holds US companies. who pays that exchange fee...someone has to. Is it Questrade or is it included in the MER?
I’m living in Canada now with plans to leave possibly in the future. Would it be best to avoid an RRSP for now and invest in my tfsa? I also plan on retiring early... and an rrsp will punish me for that
When in doubt, I always default to using the TFSA first. It's way more flexible and transparent than the RRSP. In your situation it sounds like that is also the case.
Good explanation
Thanks and welcome
So what your saying is to invest in it right now
You can come up with your own strategy, but I always stay invested. I prefer the set-and-forget approach, it's stressful to try to jump in and out of the stock market.
@@WealthAwesome This is exactly what I was alluding to re: my question and keeping things simple. I'm holding VFV, VCN, VIU, and VEE in my RRSP. I'm moreso counting on capital growth over dividends with these etfs. My TFSA imo should be where I let my dividends compound, ie: Canadian bank ETFs such as ZEB or HCA etc, and other high yield companies from each sector such as Enbridge, Telus.. you get my point I'm sure lol.
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🔥
thanks!!
Vfv video
i'll put 50k worth of vfv and let it compound for 10-20 years :D
That's not a bad strategy!
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