Vanguard FTSE Canada All Cap Index ETF (VCN:CA)
VCN:CA offers a diversified exposure to the Canadian equity market, tracking a broad index of Canadian companies. Here’s a look at the top 10 holdings by allocation in this ETF, highlighting the major players shaping its portfolio:
- Royal Bank of Canada (RY:CA): As the largest financial institution in Canada by market capitalization, Royal Bank of Canada holds a significant position in the ETF. RBC is a leading provider of personal and commercial banking, wealth management, and investment services, making it a cornerstone of the Canadian financial sector.
- The Toronto-Dominion Bank (TD:CA): Another heavyweight in the financial sector, TD Bank is a major player with a substantial allocation in the ETF. Known for its strong retail banking presence both in Canada and the U.S., TD’s stability and broad market reach contribute to its prominent position.
- Enbridge Inc (ENB:CA): A major energy infrastructure company, Enbridge plays a critical role in the ETF. The company operates one of North America’s largest pipelines, transporting crude oil and natural gas. Its significant presence reflects the ETF’s exposure to the Canadian energy sector.
- Canadian Pacific Kansas City Ltd (CP:CA): Formed from the merger of Canadian Pacific Railway and Kansas City Southern, CPKC is a key player in the transportation sector. The company’s extensive rail network across North America is vital for freight movement, underscoring its importance in the ETF.
- Canadian Natural Resources Ltd (CNQ:CA): A leading energy company, CNRL is involved in the exploration and production of oil and natural gas. Its substantial allocation in the ETF highlights the significance of the energy sector in Canada’s economy and the ETF’s focus.
- Shopify Inc (SHOP:CA): A major technology player, Shopify has made a substantial impact on the ETF. The company provides a leading e-commerce platform that enables businesses to set up and manage online stores, reflecting the growing influence of technology and innovation.
- Brookfield Corp (BN:CA): Known for its diversified investments across real estate, renewable energy, and infrastructure, Brookfield Corp holds a notable position in the ETF. The company’s broad investment strategy and global reach contribute to its significant allocation.
- Canadian National Railway Co (CNR:CA): As one of Canada’s largest rail networks, Canadian National Railway plays a crucial role in the ETF. The company’s extensive rail infrastructure facilitates the movement of goods across North America, reinforcing its importance in the portfolio.
- Constellation Software Inc (CSU:CA): A prominent player in the software industry, Constellation Software is known for acquiring and managing vertical market software companies. Its inclusion in the ETF highlights the growing importance of technology and software in the Canadian market.
- Bank of Montreal (BMO:CA): Rounding out the top holdings, the Bank of Montreal is another major financial institution with a significant allocation. The bank provides a wide range of financial services, including retail and commercial banking, wealth management, and investment banking.
Vanguard FTSE Canada All Cap Analysis & Forecast
Analyst Forecast
According to the current forecast, the average target price for Vanguard FTSE Canada All Cap (VCN) is CAD 50.69 over the next 12 months. This target suggests a slight increase from the current price level, indicating that analysts expect some appreciation in the ETF’s price in the near term. The consensus analyst rating for Vanguard FTSE Canada All Cap is currently a “Buy.”
Stock Target Advisor’s Analysis
Stock Target Advisor’s analysis of Vanguard FTSE Canada All Cap is rated as “Very Bullish.” This positive outlook is supported by two positive signals with no negative signals. The “Very Bullish” rating indicates that Stock Target Advisor’s model identifies strong positive factors driving the ETF’s performance.
Positive Fundamentals
Superior Total Returns: Vanguard FTSE Canada All Cap has demonstrated superior performance in terms of total returns compared to its sector peers over the past five years. The ETF is in the top quartile of its sector, indicating that it has consistently delivered strong returns relative to other similar investments. This outperformance on an average annual total returns basis highlights the ETF’s ability to generate higher returns for investors over a substantial holding period of at least 12 months. Such a track record of superior returns often reflects effective management and strong underlying investment choices.
High Market Capitalization: The ETF is classified among the largest entities in its sector, placing it in the top quartile based on market capitalization. A high market capitalization typically signifies stability and less volatility compared to smaller, less established funds.
Larger market capitalization often correlates with increased liquidity and more stable performance, as these funds are usually well-established and have substantial assets under management. This stability is beneficial for investors seeking consistent and reliable performance.
Negative Fundamentals: According to Stock Target Advisor, there are no specific negative aspects or concerns highlighted in their analysis of Vanguard FTSE Canada All Cap. This absence of drawbacks suggests that the ETF is currently performing well without any significant issues impacting its overall evaluation.
Current Stock Performance
At its last closing, Vanguard FTSE Canada All Cap’s stock price stood at CAD 47.42. The ETF has demonstrated modest changes in its stock price over recent periods:
- Past Week: The stock price increased by +0.85%.
- Past Month: The ETF’s price rose by +2.09%.
- Past Year: There has been a notable appreciation of +14.60%.
Final Analysis
The Vanguard FTSE Canada All Cap ETF’s top holdings reflect a well-rounded exposure to key sectors of the Canadian economy, including financials, energy, transportation, technology, and infrastructure. With substantial allocations to leading institutions like Royal Bank of Canada and Toronto-Dominion Bank, alongside significant positions in energy giants and innovative technology firms, the ETF offers a comprehensive snapshot of Canada’s economic landscape. This diversified portfolio is designed to capture broad market performance while emphasizing the influential sectors and companies driving Canada’s growth.
STA Research is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI.
