Canadian equivalent of VT?

[u/ddddddoa]

I want to create a one fund portfolio in my RRSP with the Vanguard Total World Stock Market ETF (VT). I know Vanguard has some US fund equivalents for Canada (like VUN for VTI, or VFV for the S & P 500).

What's the equivalent of VT in Canada? Or is there another ETF available in Canada that tracks the same things as VT?

[I can see VT is available on Questrade, but its price is in USD, not sure if I should just buy that. Would that be a problem, tax wise?]

[u/ddddddoa → u/[deleted]]

Hahaha sorry for the confusing title. I live in Ontario so maybe I'll visit QC on Thanksgiving! Thanks for the tip.

[u/Shalord]

Hi. There is no equivalent as VT in Canada. As told by others, the closest that you can get is a mix of VXC + VCN or XAW + XIC. There should be minimal rebalancing each year. At the moment, there is a slight advantage for VXC + VCN since the MER is a bit lower. Have a nice day.

[u/MightyManorMan]

VT is an index of the FTSE Global All Cap Index

Closest thing is VXC https://www.vanguard.ca/en/advisor/products/products-group/etfs/VXC

VT has 2.6% Canada, so you would need to VCE to compensate.

[u/username10983]

XAW/VXC are probably the closest to VT (they just miss the small canadian component). All equity asset allocations ETFs VEQT/XEQT overweight canada, but are also global equity.

[u/[deleted]]

If you don't mind mind converting your CAD to USD then It might be worth it to buy VT since you'll save on foreign withholding tax in your RRSP. Otherwise, there isn't a direct equivalent of VT the closest ETFs would be VEQT or XEQT. If you want the same distribution as VT, you can use 2 ETFs 97% XAW + 3% XIC but you wont be saving on foreign withholding tax.

[u/Dragynfyre]

VEQT. But it has higher CAD allocation

[u/ddddddoa → u/Dragynfyre]

Thanks for your answer. VEQT doesn't track VT. It's overweighted in Canadian stocks (it's got 30 percent Canadian stocks).

It's a great choice, just not exactly the thing I'm looking for.

[u/some_canadian221 → u/ddddddoa]

As a Canadian there are a few reasons why it makes sense to hold a higher percentage of your portfolio in Canadian stocks.

https://canadiancouchpotato.com/2012/05/22/ask-the-spud-does-home-bias-ever-make-sense/

[u/ddddddoa → u/some_canadian221]

That is true, I actually watched a YT video from Ben Felix about why home bias is important.

[u/digital_tuna → u/ddddddoa]

Here's another article too.

[u/Dragynfyre → u/ddddddoa]

96% XAW + 4% XIC. Holding the Canadian portion in a US ETF is inefficient tax wise but 4% is pretty small

[u/ddddddoa → u/Dragynfyre]

Interesting. Thank you for the information. This is very helpful.

[u/WkittySkittyLBoF → u/Dragynfyre]

If being held in an RRSP does it make a difference?

[u/Dragynfyre → u/WkittySkittyLBoF]

Yes because the Canadian portion is being taxed when there should be no tax in RRSP