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iShares Core S&P 500 Index ETF (CAD-Hedged) (XSP)
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Vanguard S&P 500 Index ETF (VFV)
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S&P 500 ETF TRUST ETF (SPY)
Q: Hello Peter,
Thanks for your service. My renewal is coming up and yours is the only service i plan to renew.
For the three index funds, over a 5 year comparison, VFV out performs all , SPY 2nd and XSP is the last ... Why such a discrepancy? Am I better off with VFV going forward? Thanks
Thanks for your service. My renewal is coming up and yours is the only service i plan to renew.
For the three index funds, over a 5 year comparison, VFV out performs all , SPY 2nd and XSP is the last ... Why such a discrepancy? Am I better off with VFV going forward? Thanks
5i Research Answer:
XSP is hedged to the Canadian dollar, so with the dollar weak against the US dollar this explains most of the difference. It does not get the benefit of a stronger US dollar. VFV has a slightly better 5-year return than SPY for the opposite reason. It is priced in C$ and is not hedged, so it does benefit from currency movements.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VFV, SPY.