Best U.S. ETFs for 2020
Our panel reveals their thoughts on the best exchange-traded funds for exposure to companies south of the border.
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Our panel reveals their thoughts on the best exchange-traded funds for exposure to companies south of the border.
The panel opted to retain all four of our 2019 U.S.-equity ETF picks, while adding three low-volatility ETFs.
Returning picks are the US Total Market XUU from iShares, and three low-cost plays on the S&P500 index: VFV and VSP from Vanguard, and BMO’s ZSP.
New this year are the BMO Low Volatility Equity ETF (ZLU), the iShares Edge MSCI Min Vol USA Index (XMU, MER 0.33%) and the Fidelity US Low Volatility Index ETF (FCUL, 0.4%). You will find more information on low-volatility ETFs in our All-star package overview.
And don’t forget to consult the latest crop of “desert island” picks: several panelists went with specialty US equity ETFs, such as HXQ.U from Mark Yamada and—new this year—Yves Rebetez selected NXTG as a 5G (fifth-generation wireless) Nasdaq play. The PWL team of Ben Felix and Cameron Passmore picked a US small-cap value play: Avantis U.S. Small Cap ETF (AVUV/NYSE Arca). And Dale Roberts chose the Vanguard Dividend Appreciation ETF (VIG/NYSE Arca).
ETF Name | Ticker | Management Fee | MER | # of Holdings | Description |
---|---|---|---|---|---|
iShares Core S&P US Total Market Index ETF | XUU | 0.07 | 0.07 | 4 | Holds total U.S. stock market through 4 iShares Core Funds |
Vanguard S&P 500 Index ETF | VFV | 0.08 | 0.09 | 508 | Provides unhedged exposure to the S&P500 at a very low cost |
Vanguard S&P 500 Index ETF (CAD-hedged) | VSP | 0.08 | 0.09 | 508 | Provides currency-hedged exposure to the S&P_500 at no extra cost |
BMO S&P500 Index ETF (CAD) | ZSP | 0.08 | 0.09 | 505 | Alternative to VFV; tied on fee; fund size is largest among 4 US Core ETFs |
NEW! BMO Low Volatility Equity ETF | ZLU | 0.30 | 0.33 | 102 | Holds at least 100 U.S. large-cap stocks with lower volatility than the market |
NEW! iShares Edge MSCI Min Vol USA Index | XMU | 0.30 | 0.33 | 208 | Holds U.S. equities with lower volatility than the MSCI USA index |
NEW! Fidelity US Low Volatility Index ETF | FCUL | 0.35 | 0.39 | 90 | Invests in large- and mid-cap U.S. equities with lower volatility than the broad U.S. market. |
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Nice read. Any thoughts on the XUH instead of the XUU? How does the currency change affect the holding? Thanks!
What about VYM? Low MER, great returns, why is it not here??
Thanks for all this very useful information. If I may, what is the difference between MER and Management Fee? As a customer, would I pay both of these?
Thank you
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.
Is there an alternative to xuu that holds the total us market directly?
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.
I would like to invest in an ETF that holds Berkshire Hathaway. I am looking for an ETF that trades on a Canadian exchange so I can avoid having to pay for currency exchanges when buying or selling the units.
Are there any ETF’s of this nature I can invest in?