VCE VS ZCN: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) have gained immense popularity for their ability to offer diversified exposure to various sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: VCE (Vanguard FTSE Canada All Cap Index ETF) and ZCN (BMO S&P/TSX Capped Composite Index ETF). We'll delve into crucial aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.
VCE VS ZCN: Overview
VCE and ZCN are two ETFs that cater to the Canadian equity market. While both ETFs focus on Canadian stocks, they differ in their underlying index and investment strategy. VCE tracks the FTSE Canada All Cap Index, providing exposure to a wide range of Canadian companies across various market capitalizations. On the other hand, ZCN aims to replicate the S&P/TSX Capped Composite Index, which includes a diverse selection of Canadian companies.
VCE VS ZCN: Sectors and Top Holdings
VCE's comprehensive approach results in exposure to a variety of sectors, including financials, industrials, and materials. Some of its top holdings consist of major Canadian corporations such as Shopify, Royal Bank of Canada, and TD Bank. ZCN's portfolio is also diverse, with key sectors like financials, energy, and materials. Notable holdings within ZCN include Shopify, Canadian National Railway, and Enbridge.
VCE overlap VCE VS ZCN: A Comprehensive Comparison of ETFs
VCE VS ZCN: Capitalization and Investment Strategy
VCE boasts a substantial asset under management (AUM), reflecting its popularity among investors seeking broad exposure to the Canadian market. Its investment strategy aligns with tracking the overall performance of Canadian equities. ZCN's focus on the S&P/TSX Capped Composite Index enables investors to tap into the Canadian market's performance while maintaining diversification.
VCE VS ZCN: Tracking Methods and Exposure
VCE employs a passive investment strategy by tracking the FTSE Canada All Cap Index. This index includes companies spanning the entire spectrum of Canadian equities, providing exposure to both large-cap and small-cap stocks. ZCN's tracking method revolves around the S&P/TSX Capped Composite Index, giving investors a broad representation of the Canadian equity market.
Conclusion
VCE and ZCN offer distinct approaches to accessing the Canadian equity market through ETFs. Whether investors prefer comprehensive exposure across all market capitalizations (VCE) or a focus on the broader market performance (ZCN), these ETFs present opportunities for diversified investing. For a deeper understanding of their holdings, correlations, overlaps, and other insights, consider utilizing ETF Insider—an intuitive app that empowers investors with valuable information.
Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.
Sources:
Vanguard Canada (VCE): https://www.vanguardcanada.ca/individual/indv/en/product.html#/fundDetail/etf/portId=9552/assetCode=equity/?overview
BMO ETFs (ZCN): https://www.bmo.com/gam/ca/advisor/products/etfs?fundUrl=/fundProfile/ZCN