Supporting Canadian businesses is a hot trend these days amid the ongoing trade war with the U.S. And one way you can support Canadian businesses is by investing in them. Vanguard has an exchange-traded fund (ETF) which focuses on Canadian equities: the Vanguard FTSE Canada Index ETF (TSX:VCE).
There are 52 holdings in this ETF, which looks to give investors exposure to large- and mid-cap Canadian stocks. It charges a low management expense ratio of 0.06%, making it an attractive option for long-term investors who want to hang on for the long haul, as its fees won’t make a big dent in your portfolio.
Canadian investors will recognize many of the big-name stocks within the fund, including Royal Bank of Canada (TSX:RY)(NYSE:RY), Shopify (TSX:SHOP)(NYSE:SHOP), and Enbridge (TSX:ENB)(NYSE:ENB), which are all among its top-five holdings. The fund averages a price-to-earnings multiple of less than 21, and it offers an attractive dividend yield of 2.8%.
The ETF is up around 1% since the start of the year and over the past five years, it has more than doubled in value, providing investors with some excellent gains. The near term, however, may be a challenging one for the fund as tariffs and the possibility of a recession could weigh on many top Canadian companies.
However, if you’re looking for a way to invest in Canadian stocks, this can be a great way to do so. While the year ahead may be a troubling one for the economy, if you’re looking to invest for the long haul, this may still be a good investment to put in your portfolio and forget about.
