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Why do people choose VDHG over IVV?
Investing Strategy
I've been wondering why people choose VDHG over IVV? I understand VDHG is more diversified but the MER (0.27%) is is so much higher than IVV (0.04%). Performance of IVV has been better then VDHG recently as well (but probably due to all the money printing going on).
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Scott Dyksterhuis
Asked on 13 August 2022
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Hi Scott.
VDHG is very different from IVV. The main difference besides the fees, is the underlying investments.
IVV gives people access to the US market only. The US and nothing else. VDHG gives exposure to Australia, the US and all developed countries, as well as emerging markets, and a little bit of bonds. It’s a whole portfolio in one.
So people sometimes find this simpler than investing in IVV and then adding other ETFs for further diversification. With VDHG it comes in one package, despite the higher fee.
Hope that explains.
Daave
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