Of the U.S. equity ETFs on the Focus List, this was the worst performer for the three months ending January 31, falling by 7.8%, compared with a drop of 6.6% for the iShares Core S&P 500 Index ETF (TSX: XSP). The main reason for this performance differential is VUS provides exposure to the entire U.S. equity market. Holding approximately 3,700 individual securities, about one third of the portfolio is invested in small and mid-sized companies. In comparison, XSP holds around 500 names, with virtually no exposure to small caps, and less than 20% invested in mid-cap names. During the period, small and mid-cap companies underperformed. While the shorter term outlook may be cloudy for small and mid-cap names, the longer term outlook remains strong, making this a great way to get broader U.S. equity exposure. Near term, I favour XSP, but only marginally. Longer term, I believe the additional exposure to small and mid-sized companies should allow this to provide slightly better returns.