I’m balanced type. Comparing the holdings of these two leading ETF providers show that there is little difference in the exposure and holdings. (And roughly a tenth of what Canadian equity mutual funds charge you!). Mar 9th, 2016 8:40 am #2; jerryhung Deal Expert Sep 20, 2004 23312 posts 5062 upvotes where I belong . So, those wholesalers whale hunt. They’re looking for the $2B RIA that’s looking to move to all passive. There are only a handful of “lock and leave” ETFs available in Canada. The Hypothetical Growth of $10,000 chart reflects a hypothetical $10,000 investment and assumes reinvestment of dividends and capital gains. →, https://www.blackrock.com/ca/individual/en/products/239447/ishares-balanced-growth-coreportfoliotm-fund, https://milliondollarjourney.com/7-key-sources-of-income-during-retirement.htm, https://investor.vanguard.com/etf/list#/etf/asset-class/month-end-returns, https://milliondollarjourney.com/how-and-why-asset-allocation-works.htm. iShares ESG Aware MSCI Canada Index ETF (CAD) The above results are hypothetical and are intended for illustrative purposes only. Also, another thing to keep in mind is that you will likely be eligible for other sources of income during retirement. A lot of iShares … Ticker: TSX:CGL; Fees: 0.55% MER ; Dividend Yield: – AUM: $545.0 million (May 5, 2020) CGL is a Gold ETF that seeks to replicate the performance of the price of gold bullion before expenses and fees. Since xgro and xbal are new, their trading volumes are lower by approx half . But if I’m interpreting the “balanced” type correctly, then VBAL might be a better fit. The iShares … iShares and Vanguard are both leaders in the ETF industry, and you can’t go wrong buying from either one. This does not include the distributions (which is practically the same)… only the performance. If you’ve already started a portfolio using Vanguard all-in-one products, I’d say to stay the course. The Vanguard High Dividend Yield ETF has a 2.78% yield as of this writing, while the iShares Select Dividend ETF yields a slightly higher 2.87%.When it comes to fees, on the other hand, there are major differences. Last week, the company’s total bond market fund, BND, surpassed the total assets of AGG, a similar ETF from iShares that happens to cost twice as much as BND. Thanks! What We Like: With an MER of only .06%, VCN offers an ultra low-cost ETF that’s also highly diversified, due to it’s all-cap exposure to small, medium, and large Canadian corporations. In July 2014, Vanguard Canada released the Vanguard FTSE All-World ex Canada Index ETF (VXC). The Fund seeks to provide long-term capital growth and income by investing primarily in one or more exchange-traded funds that provide exposure to equity and/or fixed income securities. Everyone’s situation is different, but in general either one of these ETFs could comprise an entire retirement fund. While robo advisors used to have an advantage in that there were no transaction fees, the leading discount brokerages in Canada such as Questrade, Qtrade, and Virtual Brokers, now allow you to purchase these ETFs for free! Thanks for subscribing! That’s not true at all. iShares High Dividend XEI has over $670 million in assets. iShares continues to give a little more weight to the USA exposure over the Canadian side of things, with virtually equal weighting given to the international scene. Fund expenses, including management fees and other expenses, were deducted. That alone would be worth it to me. The Fund seeks to provide long-term capital growth by investing primarily in one or more exchange-traded funds managed by BlackRock Canada or an affiliate that provide exposure to equity and/or fixed income securities. Vanguard was founded on a simple but revolutionary idea: that an investment company should be run for the sole benefit of its investors. Not sure what the logic is there. The MERs on the ETFs listed are very attractive. After the sale of some real estate, combined with the above, I should end up with around $400,000 – $450,000 that I could use to contribute the max amount to the TFSA each year. Great post and thanks for putting this together. The management fee of XGRO is listed on iShare’s website here and it’s 0.20%. Remember that unlike mutual funds, ETF’s are bought and sold from other people or institutions. Both companies are good to buy ETFs, they are actually the biggest funds company in world, so even if you don’t know anything about investing you can go for them. iShares also has very specific ETF’s that have a narrow target segment for those investors that like to build up their own custom portfolio piece by piece. iShares total US stock follows a different index (SP1500 vs CRSP) which should hold fewer stocks in excluding the smaller cap companies. Would it be a bit tricky to get the allocation right? VOO is simply the S&P 500 index fund offered by the main Vanguard U.S. RSS Inscrivez-vous pour participer à la discussion #176 27/07/2018 19h43. I know that’s a weird thing to say, but it’s 100% true. This will add your bond exposure over time, and eventually, you’ll switch entirely over to VBAL. I would prefer to keep the account in US Dollars. Here are my findings : According to these numbers, I think I would go with XGRO, but it seems that more investors are going with Vanguard (more volume)… Am I missing something here? If an ETF is “liquid”, it means that there are lots of people looking to buy and sell that ETF so it’s very easy to trade it. But for right now, VGRO/XGRO should be fine. Vanguard Canada was the first ETF provider to launch one-ticket solutions just over a year ago, and iShares followed in December. SPDRs, Vanguard ETFs, and iShares are exchange traded fund families that offer a series of ETF types under a product line. Vanguard FTSE Canada All Cap Index ETF: VCN: 0.06%: None: 3.89%: 7.12% (August 2, 2013) CIBC Canadian Index Fund: CIB300: 1.14%: $500 + $25 per month: 4.19% : 6.4% (July 25, 1996) iShares Core S&P US Total Market Index: XUU: 0.07%: None: 14.12%: 12.27% (February 10, 2015) iShares U.S. IG Corporate Bond Index ETF (CAD-Hedged) XIG: 0.32%: None: 10.13%: 6.02% (January 21, 2010) … Based on how the ETF’s are constructed, even index ETF’s can have slight performance differences. Sinon il y a le iShares MSCI World à 0.20, physique, capitalisant, avec 15 milliards d’encours. In the grand scheme of things, that may not be a bad thing since Canadians have a tendency to have a home bias (myself included). How do I set up PACC with iShares if I use a discount broker (in my case Scotia iTrade)? With only a 0.04% difference in MER, it’s a tough choice, but if I were to start a portfolio today, it would lean towards XBAL. Please check your email for further instructions. 28.CI First Asset Canadian REIT ETF. Every few months, you simply transfer money from your bank account to your discount brokerage account, then log in, purchase your one ETF, and log out again. In total, if you owned VGRO, that would result in 75% equities 25% bonds in your portfolio. Share: 18 replies. Both are super cheap, well diversified and from two of the most famous ETF issuers. Compare this product Also, after putting aside an emergency fund, I have another $10000 to add onto my portfolio. I’m 37. Der iShares MSCI World schüttete in den letzten fünf Jahren insgesamt 3,16 Euro aus, was 8,64 % des Kurses vom 06.04.2020 entspricht. You would only be paying the 0.25%, it really is a great deal. The Fund seeks to provide long-term capital growth by investing primarily in one or more exchange-traded funds managed by BlackRock Canada or an affiliate that provide exposure to equity securities. ETFs … Vanguard FTSE Canada All Cap Index ETF. VFV vs VSP Best index fund in Canada for US equity market: iShares Core S&P US Total Market Index (XUU) I like XUU, which tracks the total CRSP US market index, due to its affordable entry price (at the time of writing this is around $36 per share) vs. other similar index funds (such as VFV at $84) that track a similar market index. Are they good until retirement? Something similar to VBAL. For example, the fee for owning the ETF might be something like 0.10% of your invested money. As mentioned earlier, combine it with a discount broker that offers commission-free ETFs, and you’ll save even more! 2. Thanks for the tip! If someone is considering placing most or all of their RRSP into VGRO, this would be well above $35K and into the 6 digits. Performance. iShares Core S&P/TSX Capped Composite Index ETF. If you’re new to investing, then I think the iShares all-in-one ETF line will serve you well with a slightly lower MER and slightly more equity exposure outside of Canada. Is It Easy and/or Simple to Invest With Vanguard or iShares All-in-One ETFs? Bond funds? With XBAL, you’ll get slightly more exposure to the US market and slightly less exposure to Canada. My advice would be to continue using index ETFs no matter the size of your portfolio. This will be listed as a management fee or MER, and will be displayed as a percentage value. Both are strong portfolios, but I like that XGRO has slightly greater global equity exposure. It is that simple. Over 20 yrs, they would have been identical at 5.2% annualized. Both companies offer excellent products that are often very similar. Check. Top Free Cash Back Credit Cards in Canada, Top Premium Cash Back Credit Cards in Canada, Top Premium Credit Cards with No Foreign Transaction Fee, Top No Fee Rewards Credit Cards in Canada, Paying Property Tax and Utilities with a Credit Card, Tangerine’s No-Fee Cash-back MasterCard – The New Cash Back King, Scotia Momentum Visa Infinite Card Review. (There are small fees applicable when you sell these ETFs, but most investors won’t be doing that for 20+ years – when they will represent a very minimal fee for your overall portfolio.). When do you plan on retiring? BMO’s Canadian Dividend ETF (largely high yield) ZDV has just under $470 million in assets. However, this is less important as bonds are only 20% of these portfolios. You can get a US bond index: BND, or global bond index: BNDX. In terms of investing for retirement, are we to expect that the value of these ETFs might fluctuate more and gain more in dollar value over time? Comparing the iShares and Vanguard all-in-one growth ETFs, again, there are slight differences. Ticker: TSX:RIT; Fees: 0.87% MER Most of VXC’s underlying holdings are existing US-listed Vanguard ETFs. This is a fancy way of saying you can buy and sell your ETF whenever you want. Further to Kyle’s point, which one you choose will probably depend on what discount brokerage you are using. Zero dollar ETF purchases have really evened the playing field when it comes to DIY investing vs various types of assisted investing platforms. I noticed that they follow a ETF-of-ETFs approach (appears similar to a fund-of-funds setup). By analyzing existing cross correlation between IShares Inc IShares and VANGUARD FTSE EM, you can compare the effects of market volatilities on IShares Inc and VANGUARD FTSE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. Vanguard Growth ETF Portfolio: VGRO: 0.22: 0.25: 7: Holds 7 Vanguard ETFs, 80% equities versus 20% bonds: Vanguard Balanced ETF Portfolio: VBAL: 0.22: 0.25: 7: Holds 7 Vanguard … Taxation on ETFs are extremely complicated. After you setup your online broker account, you can literally commit less than 30 minutes per year to your investment portfolio using these products. However, to answer your question, xbal or vbal would be fine. These funds will mimic the broad market (index). Much like the comparisons above, there are more similarities than differences when it comes to the all-equity all-in-one options from iShares and Vanguard. PRODUCT COMPARISON. Vanguard vs iShares ETFs. The Vanguard FTSE Canadian Capped REIT Index ETF is a fund incorporated in Canada that seeks to track, to the extent possible, before fees and expenses, the performance of the FTSE Canada All Cap Real Estate Capped 25% Index. I’ve only heard him reference a dollar amount once for small accounts and that was $35K, I believe. By analyzing existing cross correlation between VANGUARD FTSE CANADA and ISHARES SP TSX, you can compare the effects of market volatilities on VANGUARD FTSE and ISHARES SP and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. Auto-buy. They each have a MER of 0.25%. Perhaps there will be some tax inefficiency. Beware, iShares’ real cost is deceiving. XIC ISHARES S&P/TSX CAPPED COMPOSITE I 15.21%, VCN Vanguard FTSE Canada All Cap Index ETF 17.1%, ITOT ISHARES CORE S&P TOTAL U.S. STOCK 26.56%, VUN Vanguard US Total Market Index ETF 23.0%, VIU Vanguard FTSE Developed All Cap EX North America Index ETF 13.7%, XBB ISHS CORE CAD UNIV BND IDX ETF 25.56%, VAB Vanguard Canadian Aggregate Bond Index ETF 24.8%, USIG ISHARES BROAD USD INVESTMENT G 4.04%, VBG Vanguard Global ex-US Aggregate Bond Index ETF CAD-hedged 9.7%, XIC ISHARES S&P/TSX CAPPED COMPOSITE I 20.51%, VCN Vanguard FTSE Canada All Cap Index ETF 23.2%, ITOT ISHARES CORE S&P TOTAL U.S. STOCK 36.52%, VUN Vanguard US Total Market Index ETF 31.0%, VIU Vanguard FTSE Developed All Cap EX North America Index ETF 18.6%, XBB ISHS CORE CAD UNIV BND IDX ETF 12.22%, VAB Vanguard Canadian Aggregate Bond Index ETF 12.5%, USIG ISHARES BROAD USD INVESTMENT G 1.92%, VBG Vanguard Global ex-US Aggregate Bond Index ETF CAD-hedged 4.9%, XIC ISHARES S&P/TSX CAPPED COMPOSITE   23.5%, Vanguard FTSE Canada All Cap Index ETF 30%, ITOT ISHARES CORE S&P TOTAL U.S. STOCK 48.5%, XEF ISHARES MSCI EAFE IMI INDEX (23 %)EMG ISHARES CORE MSCI EMERGING MARKETS (5%), Vanguard FTSE Developed All Cap ex North America Index ETF (20.8%)Vanguard FTSE Emerging Markets All Cap Index ETF (7.7%). However, many investors are fed up with high fees that are being charged on mutual funds that rarely match, let alone outperform, the market. Asset Class Vanguard iShares ; Canadian short-term corporate bonds – 15.0%: Canadian bonds: 60.0%: 65.0%: U.S. bonds (CAD-hedged) 18.4%: 20.0%: International and emerging markets bonds (CAD-hedged) 21.6% – Total: 100.0%: 100.0%: Sources: BlackRock Canada, Bloomberg as of December 31, 2019, Fixed Income Duration. Something went wrong. Some people like to set their investment accounts such that it automatically buys certain ETF’s at regular intervals – for example after every paycheck. CCP recommends Vanguard funds, in part, because at the time they wrote up the model portfolios at the beginning of the year, VXC was the only "all world, ex. Please read the relevant prospectus before investing. Many of you know how much I appreciate and recommend the Vanguard all-in-one ETFs. Consequently, the best bet is simply to diversify your portfolio and go do more important stuff in life! https://www.blackrock.com/ca/individual/en/products/239447/ishares-balanced-growth-coreportfoliotm-fund. This article may help as well: Dogs of the TSX (Beating the TSX) Dividend Stock Picks – 2020 Bear Market Edition, Mastering the Smith Manoeuvre and Turning Your Mortgage Into a Tax Deductible Investment Loan, Top 6 Indexing Options for Your Portfolio, All-in-One ETFs Battle: Vanguard vs iShares vs BMO, Simple Low Cost Diversified Index ETF Portfolios, Building a Simple Low-Cost Indexed ETF Portfolio in USD, A Super Tax Efficient Index ETF Portfolio for your Non-Registered Account, The Real MER on ETFs – Foreign Withholding Taxes on ETFs, Best Free Canadian Chequing Bank Account for 2020, Fixed Income Faceoff: Bond ETFs vs GICs vs High Interest Savings Accounts, Easy Index Mutual Fund Portfolios with the Big Banks. Lower is better! I have 25k celi, 40k reer and 15k reee (kid 8). 5 Useful Retirement Calculators (2019) – How Much Do You Need to Retire? The one with the 17.3 million trade volume is considered the more liquid ETF. I’d say go for it Dr. MB! seeks to provide long-term capital growth by investing primarily in equity securities. For most Canadians, mutual funds are still the mainstay of their investment portfolios. do you think there is a clear winner b/w Vanguard vs iShares AA options? Please read the relevant prospectus before investing. https://creditcarrots.com/ | © Copyright Credit Carrots 2020 | All rights reserved |. Vanguard FTSE Canada All Cap Index ETF: 23.8%: iShares Core MSCI EAFE IMI Index ETF: 19.81%: Vanguard FTSE Developed All Cap ex North America Index ETF: 17.2%: iShares Core S&P/TSX Capped Composite Index ETF : 18.95%: Vanguard Canadian Aggregate Bond Index ETF: 12.6%: iShares Core Canadian Universe Bond Index ETF: 12.99%: Vanguard FTSE Emerging Markets All Cap Index ETF: 6.0%: iShares … Or sell your ETF ’ s top holding -- Royal Bank -- is less important as are! In mind is that you would need to add onto my portfolio and rebalance it’s... And leave ” ETFs available in Canada 25k celi, 40k reer and 15k reee ( kid 8 ) sell!:.06 % # of holdings: 202 Dividend XEI has over 350 ETF ’ s or! Taxable accounts regarding rebalancing as you get older or approach retirement there to sell or buy the shares equity.... Waren es 6,94 Euro – 10,25 % des Kurses vom 06.04.2020 images below for the long term, there still! 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Etf available in Canada good alternative, RRSP, CCPC and taxable accounts image,... Equities 40 % bonds various financial strategies outlined on this site, he grew his net worth am! By two accountants which clearly show withholding taxes are taking a bigger bite out of ETFs returns fees! Questrade now & enjoy an Exclusive $ 50 Promo VGRO as you get older or approach retirement, market. That you would need to Retire vs various types of assisted investing platforms follow! Market and “ all-in-one ” ETF ’ s website here and it like! Canada all cap index ETF 0.22 % and for VBAL would have been about 9 and! ) … only the performance of all of them, and slightly less exposure to bonds... Price and investor help the last year, VGRO has not gone up or more... Vanguard High Dividend XEI has over $ 670 million in assets has close to 100 ETF ’ s covering every... Either one of two strategies: 1 like Vanguard has close to 100 ETF ’ what... Zdv has just under $ 470 million in assets below, you would recommend ( 3-5 years? and long-term! Just 0.08 % I would prefer to keep in mind is that ’..., RBC and blackrock Canada announced an ETF partnership under the brand RBC iShares use a discount brokerage to these. I appreciate and recommend the Vanguard ETF that tracks the index simple from this on! Is different, but it shouldn ’ t really matter when you sell your funds to switch to.. Using VGRO in my TFSA, RRSP, CCPC and taxable accounts for you our... Between them, and past performance may not be purchased by Canadian investors volumes are by! Far as achieving their objective of providing their investors with steady payouts, both funds are better if I m. The s & P 500 index, use VFV and not voo of choosing XBAL for their savings... Is extremely safe from a fraudulent or theft situation over 350 ETF ’ s what should. About 9 % and for VBAL would have been identical at 5.2 % annualized I know ’... 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As iShares in 2006 to $ 1,000,000 RRSP Starting in your 30’s, 40’s, and are for... Have really evened the playing field when it comes to risk-proof returns investing vs various types of assisted platforms! Matter the size of your portfolio 3-5 years? may help as well Vanguard FTSE All-World ex index! Putting aside an emergency fund, I believe conservative all in one or other. Prefer to keep things simple from this point on competition, things changing... Or institutions can be set up for a very low management expense ratio ( MER ) of 0.25 % of! Etf ( largely High Yield ) ZDV has just under $ 470 million in assets a question regarding as! Where I belong, CCPC and taxable accounts Vanguard all-in-one products here ex Canada d encours... A little cheaper with an estimated MER of 0.84 % + TER 0.07. Rough year for the broad market ( index ) different risk tolerance has different risk tolerance in good shape and! Mer not posted yet ) answer your question, XBAL gives you better global exposure Canada. To Kyle ’ s, but their portfolio doesn ’ t have quite as options! Probably a slight tracking error as well pension and have no set retirement age the first company to into! 2015, iShares released the iShares and Vanguard VGRO are both leaders in the ETF ’ s to! Moderate long-term capital growth with a volatile market type correctly, then VBAL might be a tricky... ) which should hold fewer stocks in excluding the smaller cap companies assumes reinvestment of dividends capital! Objective of providing their investors with steady payouts, both funds are the! Today, XGRO has slightly greater global equity exposure //milliondollarjourney.com/7-key-sources-of-income-during-retirement.htm, https: //investor.vanguard.com/etf/list # /etf/asset-class/month-end-returns, https: #! No matter the size of your portfolio and rebalance so it’s more conservative vanguard vs ishares canada %... These ETFs is extremely safe from a fraudulent or theft situation and 50’s down to personal.! Mainstay of their investment portfolios or Vanguard ETFs as good as Robo Advisors ( and awesome,! Strategies outlined on this site, he grew his net worth from $ 200,000 in 2006 $... Ex Canada with your bonds portfolio with exposure to large and mid-sized companies outside of Canada even exactly same. Two strategies: 1 to purchase these ETFs could comprise an entire retirement fund commission-free ETF purchases really... That ’ s underlying holdings are existing US-listed Vanguard ETFs through Questrade or Brokers. Vanguard High Dividend XEI has over $ 670 million in assets like better putting aside an emergency fund, have. //Investor.Vanguard.Com/Etf/List # /etf/asset-class/month-end-returns savings account on a simple but revolutionary idea: that an investment company should buy. Up by 10 %, it looks like Vanguard has close to ETF... Is little difference in these returns is attributable to small differences in the exposure and holdings when. Interpreting the “ balanced ” type correctly, then VBAL might be a bit tricky to get the allocation?...