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ETF Overview
Vanguard FTSE Canada All Cap Index ETF (TSX:VCN:CA) owns a portfolio of about 160 Canadian large-cap stocks. The fund has a low expense ratio of only 0.05%. This is low among other Canadian funds. For
VCN: A Stable But Cyclical Play For Canadian Market Exposure
Summary
- VCN has a low expense ratio of 0.05% but high exposure to cyclical sectors and low exposure to technology, leading to underperformance against the S&P 500.
- VCN's sector allocation, heavily weighted towards financials, energy, industrials, and basic materials, makes it sensitive to economic cycles and commodity price fluctuations.
- VCN's long-term earnings growth prospects are weaker than the S&P 500, with a 9.2% growth rate compared to the S&P 500's 17.9%.
- VCN is better suited as a non-core holding rather than a core holding in an investment portfolio.
I am a value focused investor. Stocks rise and fall for many different reasons that we often cannot predict. Eventually, it is those companies with a wide moat and the ability to generate cash flow that prevail. Therefore, my investment focus is to find value stocks that are able to generate cash flow, with sustainable dividends and provide growth over time. I focus my attention on analyzing large-capped dividend growth stocks, REITs and ETFs. I aim at providing a quarterly update and insights on stocks I follow. Please feel free to browse the articles that I wrote and provide any comments.
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