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Top Rated Vanguard ETF's

7K views 9 replies 4 participants last post by  Belguy 
#1 ·
Here, according to Money Magazine, are their current top rated Vanguard ETF's:

Vanguard Emerging Markets ETF
Vanguard Europe Pacific ETF
Vanguard FTSE All-World ex-US ETF
Vanguard Mid-Cap ETF
Vanguard REIT ETF
Vanguard Short-Term Bond ETF
Vanguard Small-Cap ETF
Vanguard Total Bond Market ETF
Vanguard Total Stock Market ETF

Buy, hold, and prosper and keep those fees 'little'!!
 
#6 ·
To say the obvious, Vanguard has half the MER, but both funds are a little different. With Claymore, it appears that you are indirectly paying for their pre-authorize purchase plan. (bypass the broker commissions). Kind of like a TD E-series fund, but TD doesn't have emerging market exposure, in e-series.
 
#7 · (Edited)
And then there is the Claymore Broad Emerging Markets ETF (CWO) which holds the Vanguard Emerging Markets ETF as it's sole investment but which provides currency hedging---at a price!!

http://www.claymoreinvestments.ca/en/etf/fund/cwo

The underlying Vanguard fund charges a MER of just 0.27%, when purchased directly, while the currency hedged Claymore version charges 0.65% but then there is no concern about exchange rates.

And so, when all is said and done, which of these two options is better for Canadian investors?

I guess that it all comes down to whether you believe that the added fees for the currency hedging is worth it or not.
 
#8 ·
I have read a few discussions that say you could pay a premium for someone bet your currency hedge, over the long term. You could face a loss in the hedge and miss matching the index. There are ways you can save on currency exchange fees.

Why not be diversified in other currencies?
 
#10 ·
My overall conclusion is to hold some hedged ETF's and some non-hedged ETF's and then not to worry too much about hedging again.

I plan to hold each of these ETF's 'forever' except to adjust annually for rebalancing purposes.

Thus, I hold a few hedged ETF's from Canadian firms and the rest are non-hedged, mainly lowest fee, non-hedged Vanguard ETF's.

In the final analysis, hedging is just not that great a deal and everything will come out in the wash, give or take, over the long term.

I will revisit the entire matter when I turn 100.:( :eek:
 
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