VCE VS HXS: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) have transformed the investment landscape, providing investors with diversified exposure to a wide range of sectors and asset classes. In this article, we will conduct a comprehensive comparison between two prominent ETFs: VCE (Vanguard FTSE Canada All Cap Index ETF) and HXS (Horizons S&P 500® Index ETF). We'll delve into key aspects including ticker symbols, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methodologies, and exposure profiles.
VCE VS HXS: Overview
VCE and HXS are distinct ETFs that offer exposure to different geographical markets and investment strategies. VCE is designed to replicate the performance of the FTSE Canada All Cap Index, which includes a wide range of Canadian equities. On the other hand, HXS aims to track the S&P 500® Index, providing Canadian investors with access to a diversified portfolio of U.S. large-cap stocks. These differing objectives result in contrasting risk-return profiles, which we will explore further.
VCE VS HXS: Sectors and Top Holdings
VCE's portfolio is diverse and encompasses various sectors of the Canadian equity market, including financials, energy, and technology. Its top holdings may include well-known Canadian companies like Shopify, Royal Bank of Canada, and Enbridge. Conversely, HXS's focus is on the U.S. market, with top holdings such as Apple, Microsoft, and Amazon. Understanding the sectors and top holdings of each ETF is crucial for investors seeking exposure to specific industries and markets.
VCE overlap VCE VS HXS: A Comprehensive Comparison of ETFs
VCE VS HXS: Capitalization and Investment Strategy
VCE's asset under management (AUM) reflects its popularity among investors seeking broad exposure to the Canadian equity market across different market capitalizations. The fund's investment strategy is based on passive indexing, aiming to replicate the performance of its underlying index. On the other hand, HXS employs a unique strategy involving total return swaps to provide exposure to the S&P 500® Index while minimizing foreign withholding taxes. The differing capitalization and investment strategies of VCE and HXS contribute to their distinct risk profiles.
VCE VS HXS: Tracking Methodology and Exposure
VCE tracks the FTSE Canada All Cap Index by investing in a diversified portfolio of Canadian stocks that mirror the index's composition. HXS, however, uses total return swaps to replicate the performance of the S&P 500® Index, offering Canadian investors exposure to the U.S. equity market without directly holding U.S. stocks. Understanding the tracking methodologies is essential for assessing how closely each ETF follows its respective index and how it achieves its investment objectives.
Conclusion
VCE and HXS provide investors with distinct opportunities for portfolio diversification and exposure to different markets. Those seeking comprehensive insights into these ETFs, including their holdings, correlations, overlaps, and other valuable information, can benefit from ETF Insider—an intuitive and user-friendly app that offers in-depth details on various financial instruments.
Disclaimer: This article does not offer any investment advisory services. Investors should conduct thorough research and consider their individual financial goals and risk tolerance before making any investment decisions.
Sources:
Vanguard FTSE Canada All Cap Index ETF (VCE) Fact Sheet
Horizons S&P 500® Index ETF (HXS) Fact Sheet
Official websites of Vanguard and Horizons ETFs