Last updated: Jun-20-2018

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By Patrick McKeough  | Tuesday, May 03, 2016

Generally, we think ETFs are a cheaper alternative to mutual funds. They’re also a way for Canadian investors to track international indexes. Here are two Vanguard ETFs we see as low-fee buys.

Pennsylvania-based Vanguard Group is one of the world’s largest investment management companies. In all, it administers almost $3 trillion U.S. across 175 mutual funds and ETFs.

Generally speaking, Canadians can’t buy units of mutual funds that are registered in the U.S., because they aren’t registered with provincial securities commissions. For that matter, some Canadian funds are only available in a limited number of provinces.

Canadians can, however, buy Vanguard exchange traded funds that trade on stock exchanges. Here are two Vanguard ETF we see as low-fee buys.

Vanguard Growth ETF (NYSE: VUG; buy or sell through brokers) aims to track the Center for Research in Security Prices (CRSP) U.S. Large Cap Growth Index. It’s a broadly diversified index that mainly consists of big U.S. companies. This Vanguard ETF has an MER of just 0.09%.

The $46.8 billion fund holds Apple, Alphabet, Facebook,, Coca-Cola, Home Depot, Walt Disney. Other top holdings include Philip Morris International, Comcast, Visa, Gilead Sciences, and Oracle Corp.

ETFs: Weighted to tech and consumer stocks

Its breakdown by industry is as follows: Technology, 23.9%; Consumer Services, 23.0%; Health Care, 14.2%; Financials, 12.5%; Industrials, 11.5%; Consumer Goods, 10.9%; Oil and Gas, 2.7%; Materials, 1.0%; and Telecom Services, 0.3%.

Recommendation in Canadian Wealth Advisor : BUY

Vanguard FTSE Emerging Markets ETF (NYSE: VWO; buy or sell through brokers) aims to track the Financial Times Stock Exchange (FTSE) Emerging Index. It’s made up of the common stock of companies in developing countries. The fund’s MER is just 0.15%.

The top holdings of Vanguard FTSE Emerging Markets include Taiwan Semiconductor (Taiwan: computer chips), Tencent Holdings (China: Internet), China Mobile, China Construction Bank, Naspers Ltd. (South Africa: media), Industrial & Commercial Bank of China, Bank of China, Hon Hai Precision Industry (Taiwan: electronics), Infosys (India: information technology) and Housing Development Finance (India: banking).

The breakdown by country for this $45.1 billion fund is as follows: China, 27.3%; Taiwan, 15.9%; India, 12.0%; South Africa, 8.1%; Brazil, 6.7%; Mexico, 5.5%; Malaysia, 4.6%; Russia, 4.3%; Thailand, 3.0%; Indonesia, 3.0%; Philippines, 2.0%; Poland, 1.5%; Turkey, 1.8%; and others, 5.8%.

Recommendation in Canadian Wealth Advisor : BUY for aggressive investors.

This post originally appeared on TSI Network (, © 2016 TSI Network.

Patrick McKeough, host of the investment website, has been a professional investment analyst for more than three decades. He is also a portfolio manager and the editor and publisher of four investment advisories: The Successful Investor , Wall Street Stock Forecaster , Stock Pickers Digest, and Canadian Wealth Advisor. Follow Pat on Twitter and Facebook.

Notes and Disclaimer

© 2016 by Fund Library. All rights reserved. Reproduction in whole or in part by any means without written permission is prohibited.

The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Please contact the author to discuss your particular circumstances.

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