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Learning, Sharing, and Teaching => Investor Alley => Topic started by: mgarf on October 12, 2016, 06:43:17 AM

Title: Canadians: any reason I shouldn't choose iShares XUU over Vanguard's VUN?
Post by: mgarf on October 12, 2016, 06:43:17 AM
Hi all,

I currently have my US stock proportion in VUN, however, looking at iShares XUU, it has lower fees (0.10% vs 0.16% MER) with the same amount of holdings (3,736 vs 3,564 stocks)... Does anyone see anything that I'm missing? Vanguard's pull is strong with me and I just want to make extra sure before switching. The stock weights (for the top holdings at least) seem to be almost identical as well.

Sources:

iShares:
https://www.blackrock.com/ca/individual/en/products/272104/ishares-core-sp-us-total-market-index-etf
You need to click on "Aggregate Underlying Holdings" to see the actual number of stocks, as it is a fund of funds.

Vanguard:
https://www.vanguardcanada.ca/individual/mvc/detail/etf/overview?portId=9557
Title: Re: Canadians: any reason I shouldn't choose iShares XUU over Vanguard's VUN?
Post by: nobodyspecial on October 12, 2016, 06:45:41 AM
No except to remember that the iShares is a loss leader for their other products so keep an eye on any future increases to the MER.

Only buying loss leaders is good mustachian behavior

Title: Re: Canadians: any reason I shouldn't choose iShares XUU over Vanguard's VUN?
Post by: Proud Foot on October 12, 2016, 10:47:59 AM
Since it is a fund of funds you will want to see how they calculate the MER.  Does that 0.10% include the MER for the underlying funds or is it just for the top level?
Title: Re: Canadians: any reason I shouldn't choose iShares XUU over Vanguard's VUN?
Post by: mgarf on October 12, 2016, 12:21:44 PM
Since it is a fund of funds you will want to see how they calculate the MER.  Does that 0.10% include the MER for the underlying funds or is it just for the top level?

That would be sneaky! But no, they include the underlying MERs in the calculation.

"As reported in the fund's most recent Annual Management Report of Fund Performance. MER includes all management fees and GST/HST paid by the fund for the period, including fees paid indirectly as a result of holdings of other ETFs."