VFV and VSP: Two ways to invest in U.S. stocks

U.S. stocks represent roughly 48% of the global equity market and are essential for a diversified portfolio.¹ Vanguard S&P 500 Index ETF (VFV) and Vanguard S&P 500 Index ETF (CAD-hedged) (VSP) provide exposure to 500 of the largest U.S. companies.

“A well-balanced portfolio invested for the long term should be diversified across geographical regions as well as sectors,” says Dean Allen, head of product management for Vanguard Investments Canada Inc. “That includes exposure to U.S. equities and abroad, as Canada is highly concentrated in three main sectors.”

Both VFV and VSP seek to track the S&P 500 Index by investing primarily in the U.S.-domiciled Vanguard S&P 500 ETF, which holds every stock in the index. The only difference between VFV and VSP is that VSP hedges its currency exposure to the Canadian dollar.