Vcn vs voo
11/11/2024 02:03am
The main differences between VCN and VOO are as follows:
1. **Geographic Focus**: VCN is a Canadian ETF, while VOO is a U.S. ETF. This means that VCN holds Canadian stocks, while VOO holds U.S. stocks.
2. **Withholding Tax**: Investors in Canada may be subject to a 15% foreign withholding tax on dividends if they invest in VCN due to its Canadian domicile. VOO, being a U.S. ETF, does not impose this tax.
3. **Expense Ratio**: VCN has a higher expense ratio of 0.09% compared to VOO's 0.03%.
4. **Dividend Yield**: VCN has a lower dividend yield of 1.07% compared to VOO's 1.29%.
5. **Performance**: Over the past 10 years, VCN has outperformed VOO with a performance of 319.21% compared to VOO's 257.73%.
In conclusion, while both ETFs track the S&P 500, VCN is a better option for Canadian investors looking to invest in Canadian equities, while VOO may be a more suitable choice for U.S. investors or those looking for a lower-cost option. The decision between the two should be based on individual investment goals, risk tolerance, and tax situation.