Long Term Hold VGG | Mitcer Incorporated

Long Term Hold - VGG

Vanguard U.S. Appreciation Index ETF

The following is a review of this ETF from the perspective of long term hold fire and forget investor who's goal is have their money retain it's purchasing power and ideally grow.

This analysis looks at understanding how often an investor in the past might have had success with the above stated goal. Mitcer Incorporated has developed a proprietary way of looking at the historical dividend adjusted end of day prices to provide visualizations of the data that shape this insight and allows for easily comparing and contrasting the sea of broad market investment vehicles.

The 2 to 8 year annualized return histogram with embedded qqplot shows how quickly distribution spread shrinks the longer an investor stays invested.

Some things to consider when interpreting the histogram charts below.

The green vertical line shows you where an annualized return of 0 falls. Anything to the left will be a negative return. Anything to the right will be positive annualized return.
The y axis has been normalized so that the sum of the 50 histogram bin bars sums to 1.0 allowing one to compare and contrast the charts easily as their y and x axes are consistent in size and scale.
The shorter black vertical line is the median so you can see how close the median is to the mean.
The red solid line is the mean of the distribution and the dashed red lines would be the size of the 1st Standard Deviation if the distribution was considered statistically normal.
While some of these charts appear to be normal in shape, many are not so be carefully with relying too heavily on the statistics associated with the distribution.
The light grey vertical lines show the absolute min and max of the annualized returns of the distribution for the full set of observations.

Some things to consider when interpreting the scatterplots above.

Each point represents the annualized return ending on the calendar day for the noted ETF being compared with the CPI growth for Food, Shelter and Transportation for the same calendar day.
The chart is square to ensure the aspect ratio between the vertical and horizontal axis remain equal to help with visualization.
The smaller the rectangle the less volatility in the returns.
The bounding box shows the range the the noted ETF annualized returns and annualized CPI growth fall between.
The red sloped line divides the data into points on the left falling short of inflation growth and data falling on the right beating CPI growth in the sum of the CPI Food, Shelter and Transportation sub groups.
The key take away is that the more points the fall to the right of the red sloped line the better the ETF has been at providing an annualized return that beats the annualized growth the CPI metric. The money invested did not lose purchasing power.
These views help to quickly show that the annualized returns for some ETFs are significantly better and providing returns that reduce the risk of loss of purchasing power.

ZUQ.TO: https://www.barchart.com/etfs-funds/quotes/ZUQ.TO/overview

BMO MSCI USA High Quality Index ETF (ZUQ.TO)

https://www.bmogam.com/ca-en/products/exchange-traded-fund/bmo-msci-usa-high-quality-index-etf-zuq

BMO MSCI USA High Quality Index ETF has been designed to replicate, to the extent possible, the performance of the MSCI USA Quality Index, net of expenses. The Fund invests in U.S. equity markets, while screening for high return on equity (ROE), stable year-over-year earnings growth and low financial leverage. The Fund may also invest in or hold securities intended to replicate the performance of the Index.

XQQ.TO: https://www.barchart.com/etfs-funds/quotes/XQQ.TO/overview

iShares NASDAQ 100 Index ETF (CAD-Hedged)
https://www.blackrock.com/ca/investors/en/products/239698/ishares-nasdaq-100-index-etf-cadhedged-fund

The ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the NASDAQ-100 Currency Hedged CAD Index (the “Index”), net of expenses. Under normal market conditions, the ETF will primarily invest in U.S equity securities. The Index includes 100 of the largest domestic and international non-financial securities listed on The NASDAQ Stock Market based on market capitalization. The ETF will seek to hedge U.S. dollar currency exposure back to Canadian dollars.

ZQQ.TO: https://www.barchart.com/etfs-funds/quotes/ZQQ.TO/overview

BMO NASDAQ 100 Equity Hedged to CAD Index ETF
https://www.bmogam.com/ca-en/products/exchange-traded-fund/bmo-nasdaq-100-equity-hedged-to-cad-index-etf-zqq

BMO Nasdaq 100 Equity Hedged to CAD Index ETF has been designed to replicate, to the extent possible, the performance of a NASDAQ listed companies index, net of expenses. The Fund invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index. The U.S. dollar currency exposure is hedged back to the Canadian dollar.

XMU.TO: https://www.barchart.com/etfs-funds/quotes/XMU.TO/overview

iShares MSCI Min Vol USA Index ETF
https://www.blackrock.com/ca/investors/en/products/239694/ishares-msci-usa-minimum-volatility-index-etf

The ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the MSCI USA Minimum Volatility Index (USD) (the “Index”), net of expenses. Under normal market conditions, the ETF will primarily invest in U.S. equity securities. The Index measures the performance of equity securities in the top 85% by market capitalization of equity securities listed on stock exchanges in the United States. The Index aims to reflect the performance characteristics of a minimum volatility strategy applied to the large and mid capitalization securities in the MSCI USA Index. The eligible universe of securities is taken from the MSCI USA Index, which is a free-float adjusted market capitalization-weighted index, and then MSCI, Inc. follows a rules-based methodology to determine optimal weights for securities in the Index in order to seek to minimize total risk of the Index, while applying sector weight constraints. The Index is
optimized in U.S. dollars and reported in Canadian dollars

VGG.TO: https://www.barchart.com/etfs-funds/quotes/VGG.TO/overview

U.S. Dividend Appreciation Index ETF Vanguard
https://www.vanguard.ca/en/product/etf/equity/9566/vanguard-us-dividend-appreciation-index-etf

Vanguard U.S. Dividend Appreciation Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a U.S. equity index that measures the investment return of common stocks of U.S. companies that have a record of increasing dividends over time. Currently, this Vanguard ETF seeks to track the S&P U.S. Dividend Growers Index (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies.

ZSP.TO: https://www.barchart.com/etfs-funds/quotes/ZSP.TO/overview

BMO S&P 500 Index ETF
https://www.bmogam.com/ca-en/products/exchange-traded-fund/bmo-sp-500-index-etf-zsp

The BMO S&P 500 Index ETF has been designed to replicate, to the extent possible, the performance of the S&P 500 Index, net of expenses. The ETF invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index.

XUS.TO: https://www.barchart.com/etfs-funds/quotes/XUS.TO/overview

iShares Core S&P 500 Index ETF
https://www.blackrock.com/ca/investors/en/products/251422/ishares-sp-500-index-etf

The ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P 500 Index (the “Index”), net of expenses. Under normal market conditions, the ETF will primarily invest in securities of one or more exchange traded funds managed by BlackRock or an affiliate and/or U.S. equity securities. The Index is a float-adjusted market capitalization-weighted index of equity securities of 500 of the largest U.S. public issuers. The Index is commonly used as a measure of broad U.S. stock market performance.

VFV.TO: https://www.barchart.com/etfs-funds/quotes/VFV.TO/overview

S&P 500 Index ETF Vanguard
https://www.vanguard.ca/en/product/etf/equity/9563/vanguard-sp-500-index-etf

Vanguard S&P 500 Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad U.S. equity index that measures the investment return of large-capitalization U.S. stocks. Currently, this Vanguard ETF seeks to track the S&P 500 Index (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies.

HXS.TO: https://www.barchart.com/etfs-funds/quotes/HXS.TO/overview

Global X S&P 500 Index Corporate Class ETF
https://www.globalx.ca/product/hxs

HXS seeks to replicate, to the extent possible, the performance of the S&P 500® Index (Total Return), net of expenses. The S&P 500® Index (Total Return) is designed to measure the performance of the large-cap market segment of the U.S. equity market

ZLU.TO: https://www.barchart.com/etfs-funds/quotes/ZLU.TO/overview

BMO Low Volatility US Equity ETF
https://www.bmoetfs.ca/etfs/zlu-bmo-low-volatility-us-equity-etf

BMO Low Volatility US Equity ETF has been designed to provide exposure to a low beta weighted portfolio of U.S. stocks. Beta measures the security's sensitivity to market movements. The ETF utilizes a rules based methodology to select the 100 least market sensitive stocks from a universe of U.S. large cap stocks. The underlying portfolio is rebalanced in May and reconstituted in November.

VUN.TO: https://www.barchart.com/etfs-funds/quotes/VUN.TO/overview

U.S. Total Market Index ETF Vanguard
https://www.vanguard.ca/en/product/etf/equity/9557/vanguard-us-total-market-index-etf

Vanguard U.S. Total Market Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad U.S. equity index that measures the investment returns of primarily large-capitalization U.S. stocks. Currently, this Vanguard ETF seeks to track the CRSP US Total Market Index (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies.

XUU.TO: https://www.barchart.com/etfs-funds/quotes/XUU.TO/overview

iShares Core S&P U.S. Total Market Index ETF
https://www.blackrock.com/ca/investors/en/products/272104/ishares-core-sp-us-total-market-index-etf

The ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P Total Market Index (the “Index”), net of expenses. Under normal market conditions, the ETF will primarily invest in securities of one or more exchange-traded funds managed by BlackRock or an affiliate (“iShares ETFs”) and/or U.S. equity securities. The Index offers broad exposure to large-, mid-, small-, and micro capitalized companies and includes all common equities listed on the NYSE (including NYSE Arca), the NYSE American, the NASDAQ Global Select Market, the NASDAQ Select Market, NASDAQ Capital Market, and CBOE (BZX, BYX, EDGA and EDGX). The Index is a float-adjusted market capitalization weighted index.

QQU.TO: https://www.barchart.com/etfs-funds/quotes/QQU.TO/overview

BetaPro NASDAQ-100® 2x Daily Bull ETF
https://betapro.ca/product/qqu

QQU seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to two times (200%) the daily performance of the NASDAQ-100 Index®. QQU is denominated in Canadian dollars. QQU does not seek to achieve its stated investment objective over a period of time greater than one day.

RUD.TO: https://www.barchart.com/etfs-funds/quotes/RUD.TO/overview

RBC Quant U.S. Dividend Leaders ETF
https://www.rbcgam.com/en/ca/products/etfs/rud/detail

RBC Quant U.S. Dividend Leaders ETF seeks to provide unitholders with exposure to the performance of a diversified portfolio of high-quality U.S. equity securities that are expected to provide regular income from dividends and that have the potential for long-term capital growth.

ZSP-U.TO: https://www.barchart.com/etfs-funds/quotes/ZSP-U.TO/overview

BMO S&P 500 Index ETF (USD Units)
https://www.bmoetfs.ca/etfs/zsp-u-bmo-s-p-500-index-etf-usd-units

The BMO S&P 500 Index ETF (US Dollar Units) has been designed to replicate, to the extent possible, the performance of the S&P 500 Index, net of expenses. The ETF invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index. The ETF trades in US dollars on the TSX.

ZDY.TO: https://www.barchart.com/etfs-funds/quotes/ZDY.TO/overview

BMO US Dividend ETF
https://www.bmoetfs.ca/etfs/zdy-bmo-us-dividend-etf

BMO US Dividend ETF has been designed to provide exposure to a yield weighted portfolio of U.S. dividend paying stocks. The ETF utilizes a rules based methodology that considers the three year dividend growth rate, yield, and payout ratio to invest in U.S. equities. Securities will also be subject to a liquidity screen process. The underlying portfolio is rebalanced in May and reconstituted in November.

XWD.TO: https://www.barchart.com/etfs-funds/quotes/XWD.TO/overview

iShares MSCI World Index ETF
https://www.blackrock.com/ca/investors/en/products/239697/ishares-msci-world-index-etf

The ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the MSCI World Index (the “Index”), net of expenses. Under normal market conditions, the ETF will primarily invest in securities of one or more exchange traded funds managed by BlackRock or an affiliate and/or international equity securities. The Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

XST.TO: https://www.barchart.com/etfs-funds/quotes/XST.TO/overview

iShares S&P/TSX Capped Consumer Staples Index ETF
https://www.blackrock.com/ca/investors/en/products/239838/ishares-sptsx-capped-consumer-staples-index-etf

The ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P/TSX Capped Consumer Staples Index (the “Index”), net of expenses. Under normal market conditions, the ETF will primarily invest in equity securities issued by Canadian issuers participating in the consumer staples sector. The Index is comprised of constituents of the S&P/TSX Composite Index that are assigned to the following GICS Sector: Consumer Staples (30). Individual constituents are capped at 25% weight.

HAZ.TO: https://www.barchart.com/etfs-funds/quotes/HAZ.TO/overview

Global X Active Global Dividend ETF
https://www.globalx.ca/product/haz

HAZ seeks long-term returns consisting of regular dividend income and modest long-term capital growth. HAZ invests primarily in equity and equity related securities of companies with operations located anywhere in the world. HAZ aims to provide investors with regular dividend income by selecting some of the world’s best dividend-paying companies that exhibit a consistent pattern of growing dividends, offering a potential source of steady cash flow through all market cycles.

VGH.TO: https://www.barchart.com/etfs-funds/quotes/VGH.TO/overview

U.S. Dividend Appreciation Index ETF (CAD-hedged) Vanguard
https://www.vanguard.ca/en/product/etf/equity/9564/vanguard-us-dividend-appreciation-index-etf-cad-hedged

Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a U.S. equity index that measures the investment return of common stocks of U.S. companies that have a record of increasing dividends over time, which Index is hedged to the Canadian dollar. Currently, this Vanguard ETF seeks to track the S&P U.S. Dividend Growers Index (CAD-hedged) (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies and uses derivative instruments to seek to hedge the U.S. dollar exposure of the securities included in the S&P U.S. Dividend Growers Index to the Canadian dollar.

VXC.TO: https://www.barchart.com/etfs-funds/quotes/VXC.TO/overview

FTSE Global All Cap ex Canada Index ETF Vanguard
https://www.vanguard.ca/en/product/etf/equity/9548/vanguard-ftse-global-all-cap-ex-canada-index-etf

Vanguard FTSE Global All Cap ex Canada Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad global equity index that focuses on developed and emerging markets, excluding Canada. Currently, this Vanguard ETF seeks to track the FTSE Global All Cap ex Canada China A Inclusion Index (or any successor thereto). It invests directly or indirectly primarily in large-, mid-, and small-capitalization stocks of companies located in developed and emerging markets, excluding Canada.

VSP.TO: https://www.barchart.com/etfs-funds/quotes/VSP .TO/overview

S&P 500 Index ETF (CAD-hedged) Vanguard
https://www.vanguard.ca/en/product/etf/equity/9562/vanguard-sp-500-index-etf-cad-hedged

Vanguard S&P 500 Index ETF (CAD-hedged) seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad U.S. equity index that measures the investment return of large-capitalization U.S. stocks, which Index is hedged to the Canadian dollar. Currently, this Vanguard ETF seeks to track the S&P 500 Index (CAD-hedged) (or any successor thereto). It invests directly or indirectly primarily in stocks of U.S. companies and uses derivative instruments to seek to hedge the U.S. dollar exposure of the securities included in the S&P 500 Index back to the Canadian dollar.

ZUE.TO: https://www.barchart.com/etfs-funds/quotes/ZUE .TO/overview

BMO S&P 500 Hedged to CAD Index ETF
https://www.bmoetfs.ca/etfs/zue-bmo-s-p-500-hedged-to-cad-index-etf

The BMO S&P 500 Hedged to CAD Index ETF has been designed to replicate, to the extent possible, the performance of the S&P 500 Hedged to Canadian Dollars Index (Index), net of expenses. The ETF invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index. The U.S. dollar currency exposure is hedged back to the Canadian dollar. In addition, as ZUE is a fund of fund, the management fees charged are reduced by those accrued in the underlying funds.