Comments on: A Tour of ETFs: Vanguard Total Stock Market ETF http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: How to avoid currency conversions on US Dividends | Canadian Capitalist http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-520643 How to avoid currency conversions on US Dividends | Canadian Capitalist Sun, 08 May 2011 23:00:46 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-520643 [...] won’t save all that much by avoiding currency conversions on dividend payments. For example, the Vanguard Total Market Index Fund (VTI) has a dividend yield of 2%. If you have $100,000 invested in VTI, your annual dividends will be [...] [...] won’t save all that much by avoiding currency conversions on dividend payments. For example, the Vanguard Total Market Index Fund (VTI) has a dividend yield of 2%. If you have $100,000 invested in VTI, your annual dividends will be [...]

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-476649 Canadian Capitalist Tue, 12 Apr 2011 03:49:28 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-476649 @Raul: No, it's not. This is one of the earlier posts I wrote and you are right that MER differences are not the only cost in holding currency-hedged ETFs. These ETFs have atrocious tracking errors. I've covered this topic in depth on this blog. Please see: http://www.canadiancapitalist.com/category/investing/currency-hedging/ It's not futures contracts that's the source of the large tracking errors. It is the tendency of US stocks and Canadian dollar to move in opposite directions, at least in the recent past. @Raul: No, it’s not. This is one of the earlier posts I wrote and you are right that MER differences are not the only cost in holding currency-hedged ETFs. These ETFs have atrocious tracking errors. I’ve covered this topic in depth on this blog. Please see:

http://www.canadiancapitalist.com/category/investing/currency-hedging/

It’s not futures contracts that’s the source of the large tracking errors. It is the tendency of US stocks and Canadian dollar to move in opposite directions, at least in the recent past.

]]> By: Raul http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-472829 Raul Sat, 09 Apr 2011 03:12:45 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-472829 In the article, you measure the cost of hedging by simply taking the difference in MER between an unhedged and a hedged fund. Is this the right way to do it? I have read that currency hedging costs are not included in the MER (https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20090606/STMAIN06ART1915). It seems unrealistic that currency hedging can be achieved with only 0.15% cost, especially with the large CAD/USD exchange rates changes seen over the last decade. Also, I would think that if large changes in the exchange rate are considered probable, it would be extremely expensive to buy the futures contracts needed to hedge. In the article, you measure the cost of hedging by simply taking the difference in MER between an unhedged and a hedged fund. Is this the right way to do it? I have read that currency hedging costs are not included in the MER (https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20090606/STMAIN06ART1915).

It seems unrealistic that currency hedging can be achieved with only 0.15% cost, especially with the large CAD/USD exchange rates changes seen over the last decade. Also, I would think that if large changes in the exchange rate are considered probable, it would be extremely expensive to buy the futures contracts needed to hedge.

]]> By: Horizons BetaPro Introduces S&P 500 Index (C$ Hedged) ETF (HXS) | MoneySense http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-325857 Horizons BetaPro Introduces S&P 500 Index (C$ Hedged) ETF (HXS) | MoneySense Thu, 02 Dec 2010 14:39:05 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-325857 [...] a strong competitor to XSP. Since I personally obtain all my US stock market exposure through the Vanguard Total Market ETF (VTI) mostly held in registered accounts, I’m on a wait-and-watch mode on this new ETF. [...] [...] a strong competitor to XSP. Since I personally obtain all my US stock market exposure through the Vanguard Total Market ETF (VTI) mostly held in registered accounts, I’m on a wait-and-watch mode on this new ETF. [...]

]]> By: Top 5 Investment Deals | Canadian Capitalist http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-199252 Top 5 Investment Deals | Canadian Capitalist Mon, 31 Aug 2009 12:55:21 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-199252 [...] with self-directed brokerage accounts can invest in the lowest-cost ETFs around. The MER of Vanguard Total Stock Market ETF (VTI), which tracks the entire US stock market, is just 0.09%. In other words, a $100,000 investment in [...] [...] with self-directed brokerage accounts can invest in the lowest-cost ETFs around. The MER of Vanguard Total Stock Market ETF (VTI), which tracks the entire US stock market, is just 0.09%. In other words, a $100,000 investment in [...]

]]> By: » Comment on A Tour of ETFs: Vanguard Total Stock Market ETF by … http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-187268 » Comment on A Tour of ETFs: Vanguard Total Stock Market ETF by … Mon, 30 Mar 2009 14:03:19 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-187268 [...] Read the rest here:  Comment on A Tour of ETFs: Vanguard Total Stock Market ETF by … [...] [...] Read the rest here:  Comment on A Tour of ETFs: Vanguard Total Stock Market ETF by … [...]

]]> By: Exchange-Traded Funds from BMO Asset Management | Income Trust | Personal Finance | Real Estate SEO http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-186375 Exchange-Traded Funds from BMO Asset Management | Income Trust | Personal Finance | Real Estate SEO Mon, 23 Mar 2009 22:57:35 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-186375 [...] to be of interest to Canadian investors. The BMO US Equity ETF is significantly expensive than the Vanguard Total Market ETF (VTI) but is likely to be a significant competitor to the iShares CDN S&P 500 Hedged to Canadian [...] [...] to be of interest to Canadian investors. The BMO US Equity ETF is significantly expensive than the Vanguard Total Market ETF (VTI) but is likely to be a significant competitor to the iShares CDN S&P 500 Hedged to Canadian [...]

]]> By: Exchange-Traded Funds from BMO Asset Management http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-186368 Exchange-Traded Funds from BMO Asset Management Mon, 23 Mar 2009 22:01:18 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-186368 [...] to be of interest to Canadian investors. The BMO US Equity ETF is significantly expensive than the Vanguard Total Market ETF (VTI) but is likely to be a significant competitor to the iShares CDN S&P 500 Hedged to Canadian [...] [...] to be of interest to Canadian investors. The BMO US Equity ETF is significantly expensive than the Vanguard Total Market ETF (VTI) but is likely to be a significant competitor to the iShares CDN S&P 500 Hedged to Canadian [...]

]]> By: A Tour of ETFs: Vanguard Total World Stock ETF (VT) http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-139874 A Tour of ETFs: Vanguard Total World Stock ETF (VT) Mon, 30 Jun 2008 02:17:35 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-139874 [...] is more expensive: Canadian investors can get exposure to the entire world through a combination of VTI, VEA and VWO for a composite MER of 0.12% or so. At 0.25%, VT is almost twice as [...] [...] is more expensive: Canadian investors can get exposure to the entire world through a combination of VTI, VEA and VWO for a composite MER of 0.12% or so. At 0.25%, VT is almost twice as [...]

]]> By: Switching from Index Mutual Funds to ETFs http://www.canadiancapitalist.com/a-tour-of-etfs-vanguard-total-stock-market-etf/#comment-135727 Switching from Index Mutual Funds to ETFs Thu, 29 May 2008 04:00:42 +0000 http://www.canadiancapitalist.com/2007/04/17/a-tour-of-etfs-vanguard-total-stock-market-etf#comment-135727 [...] that a better substitution for the TD US Index (TDB902) could be the Vanguard Total Stock Market ETF (VTI). Also, an initial currency conversion charge will be incurred when buying ETFs that are listed on [...] [...] that a better substitution for the TD US Index (TDB902) could be the Vanguard Total Stock Market ETF (VTI). Also, an initial currency conversion charge will be incurred when buying ETFs that are listed on [...]

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