Why I DON'T Invest in VFV // Downsides of CAD ETFs Holding US Stocks // VFV vs VOO For Canadians

Should I Choose VFV or VOO? What is the Best S&P 500 ETF for Canadians? What are the Downsides of VFV? Should I Invest in Canadian Dollars or US Dollars? How do Withholding Taxes work for Canadian Listed ETFs? Should I Buy Hedged ETFs?

These are questions I get asked ALL THE TIME so here is my answer! VFV is one of the most popular ETFs in Canada but I do NOT invest in it! Instead, I invest in VOO, the USD version of the ETF because it is cheaper, more tax efficient and more profitable in the long run! I’ll be breaking down all of the downsides and hidden costs with VFV and any Canadian ETF that holds US stocks. I’ll also cover the best way to convert currency using Norbert’s Gambit and how currency hedged ETFs work and things to look out for! Investing in the US market is important for ALL Canadians and there are a ton of great options! This video will help you decide which one to take 🇨🇦🇺🇸

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SKIP AHEAD ⏩
-Intro: 0:00
-S&P 500: 1:19
-Popularity - VFV vs VOO: 1:51
-VFV - Wrapper of VOO: 2:23
-Management Fees: 2:58
-Dividend Cut by 15%: 5:04
-Withholding Taxes on US Dividends: 5:32
-Why VFV? 8:09
-Currency Conversion: 8:41
-Norbert’s Gambit: 9:20
-Currency Hedging: 10:03
-Final Thoughts: 11:34

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DISCLAIMER: I am NOT your financial advisor! My videos and the topics discussed are my opinions and are presented for entertainment purposes only. This information should not be construed as legal or financial advice. It is always up to YOU to do your own due diligence. It’s YOUR money so make YOUR own decision!
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#StockMarketInvesting #ETFInvesting #Vanguard #S&P500 #VFV #VOO #RRSP #StocksToBuy #CanadianFinance

[CanadianTShirt]

Watch my NORBERT'S GAMBIT Tutorial to see how I convert CAD into USD without paying any conversion fees! This has saved me a TON of money over the years and I do this EVERY time I buy a US stock 👇

[tusharrajpal]

This man is making a real impact with his work. THANK YOU

[WildWilly]

Your videos are so helpful, thanks so much Adrian! As a Canadian getting paid in USD, I think it definitely makes sense for me to invest in US market rather than the Canadian equivalents. Originally I was just going to convert to CAD and do everything in CAD, but you made investing in US market sound way less complicated/scary. My plan is to ride VT for many years.

[Samsung]

Had to come back to sharpen my insights. Thanks again!

[shansingh]

Thanks buddy. Well explained and I have avoided so much hidden charges. Keep shedding lights on these inv. topics and we'll keep supporting you.

[monicac]

Thank you for this. I had VFV for a couple years now, but am finally diving into RRSP. I am hoping to increase my income significantly in the next 2 years, so I'm trying to balance my investments between TFSA and RRSP so I can take advantage of not being dinged with the 15% withholding tax on US Stocks in my RRSP. I'm glad to see you're still putting out content <3

[jin]

Thank you so much, as always, for your videos Adrian! So much great content and so helpful. Appreciate you!

[Mechyvelli]

Thank you for posting this, I had no idea and I have $1, 000 in VFV.

[missygilly]

Great video, Adrian! So glad you brought the differences to our attention!

[MikeLacho]

Great video Adrian! I did not know about the influence of the USD on the %return (I never tried comparing them like that)! Informative content as always.

[charleschan]

Completely understood why buying a Canadian ETF for US stocks is a bad idea in a TFSA. Thank you for pointing out that different investors (low vs. high income) will have different routes, and recommending their appropriate actions respectively.

I been buying VFV thru TFSA in a Dollar Cost Average method, but now know I should switch to the RRSP method and probably buy in bulk to avoid regular daily conversion fees.

[van]

I really appreciate a Canadian investing channel. We’re so closely linked to the US economy, and yet we’re in such a different world sometimes that it makes it really hard to follow a US investment channel.
I appreciate the advice! For my situation, it seems to make sense to stick with VFV for now.

[ib]

When I put both into backtest portfolio analyzer, VFV out performs VOO by a huge margin. 10k invested in 2013 yields 46k in VFV and 35k in VOO in 2023. That's a huge advantage for VFV

[GF-polb]

This guy takes it to the extreme, I buy VOO in Tfsa without thinking

[PaulChahine-ftfy]

Great video. I didn't know that you can do the currency conversion on investments with such low fees. The main reason I am not buying voo in my resp is the high conversion fee. Thanks to you I will be able to save more money. Great job! Love your content and all videos.

[cuate]

I'm a beginner and late comer in-life investor learning the ropes, but better late than never! Your video is exactly what I needed: a to the point explanation of the pros and cons of VFX and VOO. Much appreciated. New sub here. Now on to watch your video on NORBERT'S GAMBIT to continue my learning.

[loriwilliams]

I learn so much from every one of your videos. Thank you!

[rad]

Depending on individual situation, we will have to pay withdrawal tax (I.e. 20%) when we sell VOO in RRSP and withdraw funds. Holding VFV in TFSA seems like a better option because the witholding tax and higher management fee will cost way less

[dontlikesoccer]

Super helpful thanks! Was just looking to begin dollar cost averaging into vfv, I'll be sure to go with VOO instead!
So much money to be saved with all these little bits of knowledge

[torenatkinson]

So just to make sure I understand every step correctly of what is being described in the video:
Use Norbert's Gambit to convert the CAD money in the questrade RRSP account over to USD
Use the USD to buy stocks in V00
Hopefully that's correct!