This Canadian-Focused ETF Is Up Over 75% in 5 Years

If you want to invest in a good mix of Canadian stocks, one exchange-traded fund (ETF) you may want to consider is the Vanguard FTSE Canada All Cap Index ETF (TSX:VCN). It is a passively managed fund which charges a minimal expense ratio of just 0.05%. Meanwhile, it yields an attractive rate of around 2.8%.

There are around 160 stocks in the ETF and it’s entirely focused on the Canadian market, giving you exposure to top stocks such as Royal Bank (TSX:RY)(NYSE:RY), Shopify (TSX:SHOP)(NASDAQ:SHOP), Enbridge (TSX:ENB)(NYSE:ENB), and many other well known Canadian companies.

This year, the ETF has risen by around 10% and its five-year returns stand at approximately 77%. And this is without factoring in the dividend income you would have received from this investment over these timeframes.

While large-cap stocks dominate the fund, accounting for more than 80% of its holdings, as the ETF’s name suggests, it also invests in smaller businesses, giving you a position in a wide range of Canadian stocks.

In terms of sector make up, financial stocks account for around one-third of the fund’s total holdings, which should help continue to make this a stable ETF to hang on to for the long term. Thus, it can be a suitable option to hold inside of a tax-free savings account. Between the dividend income you’ll receive from it and the long-term gains you may accumulate over the years, the Vanguard FTSE Canada All Cap Index ETF can be the ideal investment to simply buy and forget about.