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The Horizons Canadian Oil And Gas Equity Covered Call (ENCC ETF) stands out for its unique approach to income generation through a covered call strategy. This review aims to unpack the nuances of ENCC, shedding light on its performance, strategy, and suitability for investors seeking to enhance their income streams without veering too far into high-risk territories.

Investment Strategy:

At its core, ENCC employs a covered call strategy, a nuanced approach where the ETF holds a portfolio of stocks and sells call options on those same stocks. This method serves a dual purpose: it aims to provide investors with potential capital appreciation from the underlying stocks and generates income from the premiums received for selling the call options. This strategy is particularly appealing in flat or moderately bullish markets, where the option premiums can significantly augment the ETF’s income.

Key Details:

Ticker: ENCC

Inception Date: April 11, 2011

Net Assets: As of January 26, 2024, the ETF boasts $240,427,269 in net assets

Exchange: Listed on the Toronto Stock Exchange, ENCC is accessible to a wide range of investors.

Eligibility: Available for all registered and non-registered investment accounts, offering versatility for different investor needs.

Fees: With a management fee of 0.65% and a management expense ratio (MER) of 0.81% as of June 30, 2023, the costs are competitive within the ETF landscape.

Performance, Fees and Yield:

ENCC has demonstrated commendable performance, with its returns reflecting the effectiveness of its covered call strategy. While the exact numbers can fluctuate based on market conditions, the ETF has historically offered a competitive yield, making it an attractive option for income-focused investors. It’s important to note, however, that the covered call strategy might cap the potential upside during strong market rallies, as the sold call options can limit the growth of the underlying assets.

	Fees	AUM
XEG – Ishares S&P TSX Capped Energy Idx	0.55	1,762
ZEO -BMO S&P TSX Eql Weight Oil Gas Index	0.55	260
ENCC – Horizons Canadian Oil And Gas Equity Covered Call ETF	0.81	240

Barchart and Issuers’ website

XEG vs ENCC and ZEO: Historical performance

SYMBOL	3 YEAR AVG RETURN	5 YEAR AVG RETURN
XEG.TO	40.34%	13.97%
ZEO.TO	31.67%	13.52%
ENCC.TO	39.57%	15.56%

As of December 27th 2023

Summary table Risk vs Benefits of a covered call strategy

Aspect	Description
Strategy	Selling call options on a security already owned in the portfolio
Name	Covered call strategy
Risk	Potential for limited upside if the stock price rises above the strike price
Benefit	Generates additional income through premium payments received from selling call options
Goal	To earn income from stock holdings while potentially reducing downside risk
Use	Often used by investors who are willing to sell their stock at a certain price if it reaches that level
Outcome	If the stock price stays below the strike price, the option expires worthless, and the investor keeps the premium payment. If the stock price rises above the strike price, the option buyer may exercise their right to buy the stock, and the investor must sell the stock at the strike price, but still keeps the premium payment.

Distributions

Ex-Dividend Date	Record Date	Payment Date	Payment Amount
01/30/2023	01/31/2023	02/10/2023	0.13
02/27/2023	02/28/2023	03/07/2023	0.13
03/30/2023	03/31/2023	04/10/2023	0.13
04/27/2023	04/28/2023	05/05/2023	0.13
05/30/2023	05/31/2023	06/07/2023	0.13
06/29/2023	06/30/2023	07/10/2023	0.13
07/28/2023	07/31/2023	08/08/2023	0.13
08/30/2023	08/31/2023	09/08/2023	0.13
09/28/2023	09/29/2023	10/06/2023	0.13
10/30/2023	10/31/2023	11/07/2023	0.13
11/29/2023	11/30/2023	12/07/2023	0.13
12/28/2023	12/29/2023	01/08/2024	0.13

Top 10 Holdings

As at January 26, 2024

Security Name	Weight
Pembina Pipeline Corp	11.46%
TC Energy Corp	11.08%
Enbridge Inc	10.83%
ARC Resources Ltd	10.48%
Keyera Corp	10.34%
Canadian Natural Resources Ltd	10.03%
Imperial Oil Ltd	10.02%
Suncor Energy Inc	9.65%
Tourmaline Oil Corp	8.65%
Cenovus Energy Inc	8.02%

Conclusion:

The ENCC ETF offers a balanced approach for those looking to diversify their income-generating investments. With its strategic use of covered calls, it provides a unique blend of income and growth potential, albeit with some limitations on the upside. As with any investment, it’s crucial to consider how ENCC fits within your broader portfolio and investment goals. Thorough due diligence and consideration of your risk tolerance are advised before incorporating ENCC into your investment strategy.

For Canadian investors navigating the complexities of the market, ENCC represents a compelling option, blending innovation with income generation. As always, stay informed and consider consulting a financial advisor to tailor your investments to your personal financial landscape.

When it comes to investing in ETFs that track the S&P 500, Canadian investors often find themselves comparing VFV (Vanguard S&P 500 Index ETF) and VOO (Vanguard S&P 500 ETF). These ETFs are similar in that they both aim to replicate the performance of the S&P 500 Index, but they have distinct differences that can affect investment outcomes, especially when held in different account types like a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP).

Executive summary VFV vs VOO

Here’s a summary table comparing the characteristics of holding a US-denominated ETF (like VOO) versus a Canadian-denominated ETF (like VFV), particularly in the context of Canadian investors:

Factor	US-Denominated ETF (e.g., VOO)	Canadian-Denominated ETF (e.g., VFV)
Currency of Trade	Traded in US dollars.	Traded in Canadian dollars.
Exchange	Traded on a US exchange, such as the New York Stock Exchange.	Traded on the Toronto Stock Exchange.
Dividend Withholding Tax	In an RRSP, US dividends are not subject to withholding tax due to the tax treaty. In other accounts, 15% withholding tax applies.	Dividends are subject to a 15% withholding tax regardless of the account, though it can be recoverable in non-registered accounts.
Currency Conversion Costs	Currency conversion is required if the investor’s base currency is not USD. This can lead to conversion fees.	No currency conversion needed for Canadian investors, saving on conversion fees.
Expense Ratios	Generally lower expense ratios due to larger scale and competition in the US market.	Slightly higher expense ratios but still relatively low for international investments.
Liquidity	Often higher trading volumes and liquidity.	Slightly lower liquidity compared to their US counterparts.
Currency Risk	Exposure to currency risk if the investor’s base currency is not USD.	Choose a Hedged ETF to reduce currency risk. If non hedged the currency risk exist but can also be considered as a way of diversification

VFV vs VOO

Understanding VFV and VOO

VFV:

VFV, or Vanguard S&P 500 Index ETF, commenced its journey on November 2, 2012, and is managed by Vanguard Investments Canada Inc. It encompasses 507 stocks, predominantly in the large-cap blend sector, indicating a focus on well-established companies. The ETF has a set management expense ratio (MER) of 0.09%, offering a reasonable cost structure for its investment services. Classified with a medium risk level, VFV is tailored to investors seeking a balanced approach to equity investment. The ETF yields dividends between 1.23% and 1.98%, demonstrating its ability to generate regular income for its shareholders.

Trading on the Toronto Stock Exchange (TSX) in Canadian dollars, VFV is particularly advantageous for Canadian investors looking to gain exposure to the US S&P 500 Index without incurring currency conversion costs. By tracking this index, VFV enables investors to participate in the performance of large-cap U.S. companies, thereby aiming for long-term capital growth. The ETF employs index/passive management techniques, ensuring a diversified investment in some of the largest and most innovative companies, while maintaining a straightforward and cost-effective investment approach. For Canadian investors keen on accessing U.S. markets with the convenience of domestic currency trading, VFV presents a compelling option.

VOO:

The Vanguard S&P 500 ETF, commonly known as VOO, was established on September 7, 2010, and is managed by The Vanguard Group. It consists of 507 stocks, focusing primarily on a large-cap blend of market capitalizations. VOO is recognized for its low management expense ratio (MER) of 0.03%, appealing to investors conscious of minimizing costs. The ETF is categorized with a moderate to aggressive risk level, reflecting its all-equity composition and market position. In terms of returns, it offers a dividend yield ranging between 1.23% and 1.98%.

VOO operates on the New York Stock Exchange (NYSE) and is denominated in US dollars. The ETF’s strategy is to track the performance of the US S&P 500 Index, providing investors exposure to some of the largest and most established companies in the United States. Its 100% equity allocation underscores its objective of long-term capital growth, targeting investors who are looking for robust growth potential in their portfolio and are comfortable with the associated risk level. VOO’s exceptionally low expense ratio combined with its strategic focus on large-cap U.S. companies makes it an attractive option for investors looking at significant exposure to the U.S. market.

Comparing Performance VFV vs VOO

VFV vs VOO

When comparing VFV (Vanguard S&P 500 Index ETF) and VOO (Vanguard S&P 500 ETF), several factors such as performance, costs, tax implications, and currency considerations come into play. Each has its unique advantages and considerations, which vary depending on the investor’s situation, investment goals, and account type.

Performance and Expense Ratio VFV vs VOO:

VFV has shown to be a strong performer for Canadian investors seeking exposure to the U.S. S&P 500 index without the hassle of currency conversion, as it trades in Canadian dollars on the Toronto Stock Exchange. It has a slightly higher management expense ratio (MER) of 0.09% compared to VOO. However, its performance has been commendable, often attributed to the currency fluctuations between the CAD and USD.
VOO, on the other hand, trades on the New York Stock Exchange in U.S. dollars and is known for its low MER of 0.03%. This lower cost structure can potentially translate into higher returns for investors over time. The fund’s performance is directly related to the U.S. market and currency, providing a purer form of exposure to the S&P 500 for those who hold U.S. dollars.

Dividend Yield and Tax Implications:

VOO tends to have a higher dividend yield and, importantly, dividends from VOO are not subject to the 15% withholding tax in RRSP and RRIF accounts due to the U.S.-Canada tax treaty. This makes it an attractive option for those holding these accounts, as it optimizes the dividend income.
VFV, while offering a competitive dividend yield, has dividends subject to a 15% withholding tax. This tax impact can reduce the overall return, especially in accounts like TFSA where you cannot recover the withholding tax. However, in non-registered accounts, the foreign tax credit can offset some of these taxes.

Currency Considerations:

The choice between VFV and VOO may also hinge on the investor’s currency preference. VFV allows Canadian investors to invest directly in Canadian dollars, avoiding the currency exchange fees. This makes it a convenient and cost-effective option for those who do not wish to engage in currency conversions.
VOO requires Canadian investors to convert their CAD to USD, incurring conversion fees unless they already have USD or use strategies like Norbert’s Gambit to minimize these costs. However, holding U.S. dollars might be more efficient for those who anticipate making several investments in U.S. securities or for those who already hold U.S. income or savings.

Investment Horizon and Usage:

For individuals, particularly those nearing or in retirement, frequent currency conversion between CAD and USD can be cumbersome and costly. In such scenarios, VFV might be more beneficial despite the tax on dividends. It eliminates the need for ongoing currency management and can provide a simpler investment experience.
Conversely, for long-term investors or those with a significant time horizon, transitioning to USD and investing in VOO might be more cost-effective in the long run. The lower fees and tax efficiency in specific account types can compound significantly over time, enhancing overall returns.

Special Considerations:

Investors particularly concerned about currency risk might not find either VFV or VOO ideal if they are looking for currency-hedged options. In such cases, exploring currency-hedged versions of S&P 500 ETFs would be more appropriate to mitigate currency fluctuation risks (such as VSP).

Holding in TFSA vs RRSP

When deciding between holding these ETFs in a TFSA or an RRSP, it’s crucial to understand the tax implications:

TFSA:

US Dividend Withholding Tax: 15% withholding tax on dividends from US stocks applies.
Capital Gains: Tax-free.
Currency Conversion: If investing in VOO, investors need to convert CAD to USD, incurring additional costs.

TFSAs are great for tax-free growth and withdrawals, but the 15% withholding tax on US dividends diminishes the returns from US-based ETFs like VFV and VOO. However, it’s a flexible account that allows for tax-free withdrawals at any time.

RRSP:

US Dividend Withholding Tax: Exempt for US stocks or ETFs like VOO.
Capital Gains: Tax-deferred until withdrawal.
Currency Conversion: Necessary for VOO, but no conversion needed for VFV.

RRSPs offer a tax-deferred growth environment, making them particularly beneficial for holding US securities like VOO. The exemption from the US dividend withholding tax enhances the appeal of VOO in an RRSP. However, consider that eventual withdrawals from RRSPs are taxed as income at your marginal rate.

Factors to Consider

Currency Conversion and Costs: VFV allows Canadians to invest in the S&P 500 without currency conversion fees, making it more straightforward and cost-effective. VOO requires currency conversion, adding a layer of cost and complexity. However, if you have USD or are willing to use currency conversion strategies like Norbert’s Gambit, VOO’s lower MER might be more appealing.

Tax Implications: The choice between TFSA and RRSP is critical. VFV’s dividend withholding tax applies regardless of the account, while VOO’s exemption in RRSPs can be a significant advantage. Consider your current and future tax brackets, as well as the purpose of your investment (e.g., retirement savings vs. general investment).

Investment Goals and Risk Tolerance: Both VFV and VOO are 100% invested in equities, making them volatile. Ensure these ETFs fit within your broader investment strategy and risk tolerance. Diversification and understanding your long-term goals are key to making the right choice.

Performance and Returns: While historical performance isn’t indicative of future results, the difference in returns due to expense ratios, withholding taxes, and currency fluctuations should be considered. VFV’s outperformance might be attractive, but remember to consider all factors, including costs and taxes.

Conclusion VFV vs VOO

Choosing between VFV and VOO, and deciding whether to hold them in a TFSA or an RRSP, is a decision that should be tailored to your individual circumstances, goals, and financial situation. VFV offers ease and cost-effectiveness for Canadians, while VOO appeals with its low expense ratio and tax efficiency in RRSPs. Consider all aspects, including currency conversion, tax implications, fees, and your investment strategy, before making a decision. As always, consider consulting with a financial advisor to understand how these choices fit into your overall financial plan. Your investment journey should be as unique as your financial goals, and understanding the nuances

Introduction

In the realm of Canadian investing, bond Exchange-Traded Funds (ETFs) are popular for those seeking stable income and lower risk compared to stocks. Today, we’re comparing two well-known ETFs: BMO Aggregate Bond Index ETF (ZAG) and iShares Core Canadian Universe Bond Index ETF (XBB). Both aim to provide exposure to Canadian bonds, but they have distinct features that may appeal to different types of investors (ZAG vs XBB).

Executive summary

Summary Table: ZAG vs XBB

Feature	ZAG (BMO Aggregate Bond Index ETF)	XBB (iShares Core Canadian Universe Bond Index ETF)
Objective	To replicate the Bloomberg Barclays Canadian Float Adjusted Bond Index performance.	To track the FTSE Canada Universe Bond Index performance.
MER	0.09% (On a $10,000 investment, annual fee would be $9)	0.10% (On a $10,000 investment, annual fee would be $10)
AUM	$6.40 billion (indicating higher popularity and potential liquidity)	$4.51 billion (robust but less than ZAG)
Diversification	Broad range of government and corporate Canadian bonds.	Similar broad exposure to Canadian government and corporate bonds.
Liquidity	Generally higher due to larger AUM.	Sufficient, though slightly less than ZAG due to smaller AUM.
Performance	Steady, reflecting overall Canadian bond market.	Aims for consistent income and capital preservation, mirroring broader market.
Investment Suitability	Suitable for those seeking a diversified, low-cost bond ETF. Preferred for its slightly lower fees and higher liquidity.	Also suitable for diversified bond exposure with slightly higher fees but robust performance.

ZAG vs XBB

ZAG: BMO Aggregate Bond Index ETF Overview

ZAG is designed to replicate the performance of the Bloomberg Barclays Canadian Float Adjusted Bond Index. It includes a wide range of government and corporate bonds, offering a diversified bond portfolio.

Management Fee: Low, making it an attractive option for cost-conscious investors.

Diversification: Covers a broad spectrum of Canadian bonds.

Performance: Known for steady performance, reflecting the overall Canadian bond market.

XBB: iShares Core Canadian Universe Bond Index ETF Overview

XBB seeks to track the performance of the FTSE Canada Universe Bond Index. Similar to ZAG, it invests in a diversified portfolio of Canadian bonds, including government and corporate bonds.

Management Fee: Slightly higher than ZAG, but still competitive.

Diversification: Similar broad exposure to the Canadian bond market.

Performance: Aims for consistent income and preservation of capital, mirroring the broader bond market.

Key Differences to Consider ZAG vs XBB

Index Tracked:

ZAG follows the Bloomberg Barclays index, while XBB tracks the FTSE Canada Universe. The difference in indices may lead to variations in holdings and performance.

Fees: A Closer Look

The cost of an ETF is reflected in its Management Expense Ratio (MER), a crucial factor for many investors. The MER is a yearly charge deducted from the ETF’s net asset value (NAV), affecting overall returns.

XBB: Features an MER of 0.10%. This means on a $10,000 investment, the annual fee would be $10.

ZAG: Comes in slightly lower at 0.09% MER, equating to $9 annually on a $10,000 investment.

While both ETFs are competitive, ZAG edges out with marginally lower fees, making it a slightly more cost-efficient choice in the long run.

Size and Liquidity: Importance of AUM

The Assets Under Management (AUM) of an ETF are indicative of its size and liquidity. Larger AUM generally means better liquidity, lower bid-ask spreads, and lesser risk of being delisted.

XBB: Boasts an AUM of $4.51 billion, indicating robust trading and stability.

ZAG: Has a higher AUM of $6.40 billion, making it more popular and potentially offering better liquidity.

Both ETFs have substantial AUM, ensuring sufficient liquidity for most investors. However, ZAG’s larger size might provide a bit more confidence for those concerned about liquidity and market presence.

Which One Should You Consider ZAG vs XBB?

Risk Profile and Investment Goals: Both ETFs are suitable for those seeking income and lower risk. Your choice may depend on the specific index you prefer or slight differences in fees and liquidity.

Cost-Sensitivity: If you are particularly sensitive to fees, ZAG might be the more appealing option due to its lower MER.

Diversification Needs: Both offer broad market exposure, but it’s worth looking into the specific bonds each holds to ensure alignment with your diversification strategy.

Both ZAG and XBB are reputable ETFs offering Canadian investors quality bond exposure. The choice between the two might boil down to slight differences:

Cost-conscious investors might lean towards ZAG for its marginally lower MER.

Liquidity-focused investors could prefer ZAG due to its larger AUM, though both ETFs are quite liquid.

Conclusion

Both ZAG and XBB are strong contenders in the Canadian bond ETF space. They offer diversified exposure to Canadian bonds, with slightly different approaches and fee structures. As always, it’s essential to consider your investment goals, risk tolerance, and costs before making a decision. Remember, while ETFs can be part of a diversified portfolio, it’s crucial to understand the underlying assets and risks involved.

Remember to consult with a financial advisor or do further research before making investment decisions. Stay informed and invest wisely!

When it comes to investing in ETFs, many Canadians look for all-in-one solutions that offer a diversified portfolio with a single transaction. XEQT and VGRO are two popular all-in-one ETFs that aim to simplify investing for individuals. Each ETF provides a different investment strategy, asset allocation, and risk level, and understanding these differences is key to choosing the right one for your investment goals (XEQT vs VGRO).

Executive summary

Here is a summary table comparing XEQT and VGRO:

Feature	XEQT (iShares Core Equity ETF Portfolio)	VGRO (Vanguard Growth ETF Portfolio)
Issuer	BlackRock Canada	Vanguard Canada
Asset Allocation	100% Equities	80% Equities, 20% Fixed Income
Investment Strategy	Invests entirely in other iShares ETFs for global equity exposure	Invests in a mix of Vanguard ETFs for a diversified blend of stocks and bonds
Risk Profile	High (due to full equity exposure)	Moderate to High (due to mixed assets)
Intended Investor Profile	Investors with high risk tolerance and long-term growth focus	Investors seeking a balance of growth and income, with moderate risk tolerance
Market Exposure	Global, including U.S., Canada, developed international markets, and emerging markets	Global, with a diversified portfolio across various markets and asset classes
Potential for Returns	Higher potential returns with higher volatility	Potentially lower returns compared to XEQT, but with reduced volatility due to bond inclusion
Income Generation	No direct income focus, as it is all equities	Provides income through the fixed income component
Investment Horizon	Suitable for long-term investors who can withstand periods of market volatility	Suitable for investors looking for long-term growth with some level of stability

XEQT: iShares Core Equity ETF Portfolio

XEQT, the iShares Core Equity ETF Portfolio, is offered by BlackRock Canada. It’s designed for investors looking for long-term capital growth with a 100% equity allocation. This ETF is a fund of funds, meaning it invests in other iShares ETFs. It has a global reach, including exposure to the U.S., Canada, developed international markets, and emerging markets.

The 100% equity composition makes XEQT an aggressive investment option, suitable for investors with a higher risk tolerance and a longer time horizon. It does not include bonds, which typically provide stability and income. As a result, investors can expect higher volatility but also the potential for higher returns over the long term compared to mixed-asset ETFs.

VGRO: Vanguard Growth ETF Portfolio

The fund VGRO, by Vanguard Canada, is another popular choice for investors looking for an all-in-one ETF solution. VGRO aims to provide long-term capital growth with a strategic allocation of roughly 80% in equities and 20% in fixed income. This blend of stocks and bonds is designed to strike a balance between risk and return.

VGRO’s diversified approach across different markets and asset classes makes it suitable for investors with a moderate to high risk tolerance. The inclusion of bonds serves to temper the volatility associated with stock markets. It provides a cushion during market downturns and a steady stream of income through interest payments.

Key Differences Between XEQT vs VGRO

Investment Strategy

XEQT is an all-equity portfolio, making it more aggressive with the potential for higher returns and higher risk. VGRO includes a mix of equities and bonds, aiming for growth while mitigating risk with income-generating assets.

Asset Allocation

With XEQT, you are looking at a 100% allocation to stocks, whereas VGRO offers an 80/20 split between stocks and bonds.

Risk Profile

XEQT is geared towards investors with a high-risk tolerance, while VGRO caters to those with a moderate to high-risk tolerance, offering a more balanced approach.

Potential Returns

While both ETFs aim for growth, XEQT’s all-equity profile suggests higher potential returns accompanied by greater volatility. VGRO’s mixed allocation may result in more stable but potentially lower returns over the same period.

Which One Should You Choose XEQT vs VGRO?

The choice between XEQT and VGRO should be based on your investment horizon, risk tolerance, and financial goals. If you are a younger investor with a long time horizon and a capacity to withstand market swings, XEQT might align with your growth-oriented strategy. Conversely, if you seek a balance between growth and income with a slightly lower risk profile, VGRO may be more appropriate.

Conclusion

Both XEQT and VGRO offer diverse, all-in-one investment solutions that cater to different investor profiles. XEQT suits those who are fully focused on equity growth and can handle the associated risks, while VGRO is for those who prefer a mix of growth and income with a slightly tempered risk approach. Whichever you choose, these ETFs can be convenient, low-maintenance options for building your investment portfolio. Always consider consulting with a financial advisor to ensure that your investment choice aligns with your overall financial plan.

When it comes to investing in ETFs in Canada, two popular choices often come up: the Vanguard S&P 500 Index ETF (VFV) and the iShares Core Equity ETF Portfolio (XEQT). Both have distinct characteristics, suited to different investor needs. Let’s explore these two ETFs, highlighting the structure of XEQT as a fund of funds and contrasting it with the singular focus of VFV.

Executive summary VFV vs XEQT

Here’s a summary table comparing VFV and XEQT:

Feature	VFV (Vanguard S&P 500 Index ETF)	XEQT (iShares Core Equity ETF Portfolio)
Investment Focus	U.S. S&P 500 companies only.	Diversified global equities including Canadian, U.S., and international stocks.
Diversification	Focused on large-cap U.S. equities.	Broad diversification across multiple ETFs and regions.
Fund Structure	Straightforward ETF tracking the S&P 500 Index.	Fund of funds, investing in a variety of other ETFs.
Investment Objective	Preferred by those seeking exposure to U.S. equity market and large-cap sector.	Suited for investors wanting a diversified, global equity portfolio with one ETF.
Market Exposure	Exclusively U.S. market.	Multiple markets including Canada, U.S., and international.
Simplicity	Direct and easy to understand exposure to a single index.	Simplifies diversified investing through a single fund management.

VFV: Vanguard S&P 500 Index ETF

VFV is designed to track the performance of the S&P 500 Index, providing Canadian investors with exposure to some of the largest and most well-established U.S. companies. It’s a straightforward approach to investing in a broad range of sectors through a single, renowned index.

Key Points for VFV:

Exposure: Directly focuses on U.S. equity markets, representing a cross-section of industries.
Simplicity: A single index focus makes it easier for investors to understand what they are buying into.
Performance: Tends to mirror the performance of the S&P 500, known for long-term growth.

XEQT: iShares Core Equity ETF Portfolio

XEQT stands apart as a fund of funds, essentially an all-in-one ETF solution. It’s designed to provide exposure to a diversified portfolio of equity ETFs, representing both Canadian and global markets.

Key Points for XEQT:

Diversification: As a fund of funds, XEQT offers broad diversification across several ETFs, industries, and geographical regions.
Simplicity of an All-in-One: While it holds multiple ETFs, investors get the simplicity of managing just one ETF that covers various asset allocations.
Asset Allocation: XEQT is typically weighted heavily towards equities, making it suitable for investors with a long-term horizon and a higher risk tolerance.

VFV vs XEQT: What Sets Them Apart

When considering VFV and XEQT, two ETFs popular among Canadian investors, it’s important to understand their distinct strategies and structures. VFV takes a focused approach, investing solely in U.S. S&P 500 companies, offering direct exposure to some of the largest and most influential corporations in the U.S. This makes VFV an appealing choice for investors who want a concentrated investment in large-cap U.S. equities.

On the other hand, XEQT provides a contrast with its diversified investment strategy. As a fund of funds, XEQT holds a variety of ETFs, spanning Canadian, U.S., and international equities. This broad approach allows investors to benefit from a global equity portfolio, spreading risk across multiple geographies and sectors. The all-in-one nature of XEQT simplifies portfolio management while ensuring extensive diversification.

The fund structures of VFV and XEQT also reflect their distinct strategies. VFV is a straightforward ETF, specifically tracking the performance of the S&P 500 Index. In contrast, XEQT’s structure as a fund of funds encompasses a range of ETFs, offering a more layered and comprehensive investment approach. This difference is pivotal in understanding the investment objectives of each ETF. VFV attracts investors seeking targeted exposure to the U.S. equity market and a performance closely tied to the S&P 500. Conversely, XEQT appeals to those desiring a diversified and expansive equity portfolio without the complexity of managing multiple ETFs. Each ETF serves different investor needs, with VFV focusing on specific market exposure and XEQT offering wide-ranging diversification.

Conclusion

Both VFV and XEQT offer unique advantages. VFV caters to those looking for specific exposure to the U.S. market through the S&P 500, a benchmark for large-cap U.S. equities. XEQT appeals to investors wanting a diversified, global equity portfolio with the simplicity of a single ETF. Your choice between VFV and XEQT should align with your investment goals, risk tolerance, and desired level of diversification. Understanding the structure and focus of each ETF can help you make an informed decision that fits your long-term financial strategy.

Are you looking to diversify your portfolio with Canadian banking stocks? The Hamilton Enhanced Canadian Bank ETF (HCAL.TO) might be an intriguing option. Let’s delve into what HCAL ETF is all about, its unique approach, and how it might fit into your investment strategy.

What is HCAL ETF?

Hamilton Enhanced Canadian Bank ETF aims to provide investors with a unique way to participate in the performance of the Canadian banking sector. It’s designed to track 1.25 times the returns of the Solactive Equal Weight Canada Banks Index. Essentially, for every 1% increase (or decrease) in the index, HCAL aims to increase (or decrease) by 1.25%. It achieves this by investing directly in Canadian banks and employing a modest 25% cash leverage. Unlike some other funds, HCAL does not use derivatives.

Key Highlights of HCAL

Attractive Yield: HCAL features a yield of 7.37%, paid out to investors monthly. This aspect may be appealing to those looking for consistent income from their investments. The monthly distribution of dividends provides a regular income stream. This can be a key consideration for investors focused on income generation or cash flow.

Equal-Weight Exposure: HCAL provides equal-weight exposure to Canada’s “Big Six” banks. This means that the ETF doesn’t focus more heavily on any single bank, aiming to reduce the risk associated with concentration in one or a few stocks. This approach leads to a more balanced investment in the sector, distributing investment risk across multiple entities.

Volatility: The volatility of HCAL is a bit higher than that of the big six Canadian banks, despite the use of 25% cash leverage. This indicates that the fund, while seeking to amplify returns through leverage, does not substantially increase volatility. For investors, this could mean that while the fund aims for higher returns through leverage. It may not expose them to significantly higher short-term risks associated with market fluctuations.

A Good Fit for Investors Who:

Seek Enhanced Growth: The additional leverage means that gains can be magnified. If you believe in the long-term growth of Canadian banks and are comfortable with the associated risks, HCAL could enhance your portfolio’s growth potential.

Desire Higher Monthly Income: With its monthly payouts and attractive yield, HCAL can be a source of regular income, potentially higher than many other income-generating investments.

Are Comfortable with Modest Leverage: I think 25% cash leverage is modest compared to some aggressive investment strategies. Ensure you understand and are comfortable with this before investing.

How to invest in HCAL ETF?

HCAL trades on the Toronto Stock Exchange (TSX) and is eligible for a variety of investment accounts including RRSP, RRIF, DPSP, RDSP, FHSA, RESP, and TFSA. If you’re interested in reinvesting your dividends, I recommend setting up a Dividend Reinvestment Plan (DRIP) through your brokerage.

HCAL’s Holdings

As of the last update (December 29, 2023), HCAL’s primary holding is the Hamilton Canadian Bank Equal-Weight Index ETF, constituting 125.1% of its weight due to the leverage employed. This ETF in turn invests proportionally in the “Big Six” banks of Canada:

Canadian Imperial Bank of Commerce
Bank of Montreal
Royal Bank of Canada
National Bank of Canada
Toronto-Dominion Bank
Bank of Nova Scotia

In my view, these banks are foundational to the Canadian economy and have historically been considered stable investments.

As at December 29, 2023

TICKER	NAME	WEIGHT
HEB	Hamilton Canadian Bank Equal-Weight Index ETF	125.1%

Leverage is via cash borrowing (not derivatives), provided by a Canadian financial institution.

HEB HOLDINGS

Hamilton Canadian Bank Equal-Weight Index ETF invests in Canada’s “big six” banks

NAME	WEIGHT
Canadian Imperial Bank of Commerce	18.1%
Bank of Montreal	17.3%
Royal Bank of Canada	16.7%
National Bank of Canada	16.6%
Toronto-Dominion Bank	16.0%
Bank of Nova Scotia	15.3%

HCAL ETF Distributions

Please consult issuers’ website for up-to-date data

EX-DIVIDEND DATE	PAID	FREQUENCY	AMOUNT
2023-12-28	2024-01-08	Monthly	$0.1270
2023-11-29	2023-12-07	Monthly	$0.1270
2023-10-30	2023-11-07	Monthly	$0.1270
2023-09-28	2023-10-06	Monthly	$0.1270
2023-08-30	2023-09-08	Monthly	$0.1270
2023-07-28	2023-08-08	Monthly	$0.1270
2023-06-29	2023-07-10	Monthly	$0.1270

Conclusion

HCAL offers a unique take on investing in Canadian banks. Its combination of leverage, equal weighting, and focus on the “Big Six” could provide an enhanced return profile along with monthly income. As always, ensure it aligns with your investment objectives and risk tolerance, and consider discussing with a financial advisor if you’re unsure. Happy investing!

HCA Stock: Fund’s Objective

The fund is strategically designed to closely replicate the returns of the Solactive Canadian Bank Mean Reversion Index TR. This index implements a mean reversion trading strategy, a financial theory that suggests asset prices eventually move back to their historical average or mean over time.

In the context of the Canadian banking sector, the mean reversion strategy applied to the “Big Six” banks involves adjusting the weights of individual bank stocks based on their relative performance. Quarterly rebalancing is conducted to realign the portfolio with the mean reversion principle, ensuring that the weights are adjusted to capitalize on potential opportunities created by deviations from historical averages.

This mean reversion approach aims to capitalize on the tendency of asset prices, in this case, the stocks of Canada’s major banks, to revert to their historical mean after periods of divergence. The Solactive Canadian Bank Mean Reversion Index TR has demonstrated historical outperformance when compared to an equal-weight portfolio of Canada’s banks, showcasing the effectiveness of the mean reversion strategy in this specific market context.

Financial data – HCA Stock

HCA ETF – Stock review updated daily

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HCA Stock Profile

Historical performance vs similar ETFs

HCA Stock 52 weeks high and low

HCA Stock review updated daily

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Portfolio

NAME	Weight
Bank of Nova Scotia	27.9%
Toronto-Dominion Bank	27.1%
Royal Bank of Canada	26.4%
Bank of Montreal	6.4%
Canadian Imperial Bank of Commerce	6.2%
National Bank of Canada	6.0%

Please consult issuers’ website for up-to-date data

What should I know before buying an ETF?

Investors should pay close attention to the following:

The fund’s objective;
Risk level
Management Expense Ratio (Total fees charged by an ETF)
Liquidity

Are ETFs good for beginners?

ETFs are great for both beginners and Experts.

They are ideal if you want to bet on a particular sector or commodity;
ETFs are used by large number of investors as a mean of generating passive income (for instance with Dividend ETFs);
Actively managed ETFs allow investors access to sophisticated investment styles: Value investing, Covered call,…etc).

What are the Fees associated with ETFs

Management Expense Ratio (MER):

The percentage of a fund’s average net assets paid out of the fund each year to cover the day-to-day and fixed costs of managing the fund. The figure is reported in the Fund’s annual management report of fund performance. MER includes all management fees and GST/HST paid by the fund for the period, including fees paid indirectly as a result of holding other ETFs.

Management Fee:

The annual fee payable by the fund to the manager of the fund for acting as trustee and manager of the fund. This fee forms the largest portion of the MER. Typically, included in the management fee are the costs associated with paying the custodian and valuation agents, registrar and transfer agents, and any other service providers retained by the manager.

Operating Expenses:

Other operating costs such as fees and expenses relating to the independent review committee, brokerage expenses and commissions, and taxes.

Investing in exchange-traded funds (ETFs) has become increasingly popular due to their simplicity and diversification benefits. When it comes to ETFs, investors have various options to choose from. In this article, we will discuss the advantages of investing in small-cap ETFs, particularly focusing on the iShares Russell 2000 ETF (IWM Stock), and what investors can expect when comparing it to large-cap ETFs.

IWM Stock – Investment Objective:

The iShares Russell 2000 ETF seeks to track the investment results of an index composed of small-capitalization U.S. equities. But why should investors consider IWM?

Advantages of Investing in Small Cap ETFs:

Exposure to Small Public U.S. Companies:

One of the primary advantages of investing in small-cap ETFs like IWM is exposure to small public U.S. companies. Small-cap stocks represent companies with a relatively smaller market capitalization compared to their large-cap counterparts. These companies often have significant growth potential and can offer higher returns over the long term. By investing in IWM, investors gain access to this segment of the market that may not be as accessible through individual stock selection.

Access to 2000 Small-Cap Domestic Stocks in a Single Fund:

IWM provides investors with exposure to a diversified portfolio of 2000 small-cap domestic stocks, all within a single fund. Diversification is a key risk management strategy, as it spreads investment risk across various assets. With IWM, investors can benefit from this diversification without the need to individually select and manage a multitude of small-cap stocks. This reduces the risk associated with the potential underperformance of any single company and provides a broader market exposure.

Use to Diversify a U.S. Stock Allocation and Seek Long-Term Growth:

Investors often allocate a portion of their portfolio to U.S. stocks for long-term growth. While large-cap stocks dominate the market, small-cap stocks offer diversification benefits within this allocation. By adding small-cap exposure through ETFs like IWM, investors can diversify their U.S. stock allocation and potentially enhance their portfolio’s overall performance. Small-cap stocks are known for their growth potential, making them a valuable addition for investors seeking long-term capital appreciation.

Expectations from Small Cap ETFs vs. Large Cap ETFs:

Potential for Higher Returns:

Small-cap ETFs like IWM typically offer the potential for higher returns compared to large-cap ETFs. Small-cap stocks often have more room to grow, and when the economy is performing well, they can outperform their larger counterparts. However, it’s essential to note that with the potential for higher returns comes increased volatility, which investors should be prepared for.

Increased Risk:

Investing in small-cap ETFs carries a higher level of risk compared to large-cap ETFs. Small-cap stocks can be more sensitive to economic downturns and market volatility. Investors should have a long-term investment horizon and be prepared for periods of price fluctuations.

Full list of ‘Dividend Kings’ stocks by sector – 2023

IWM Stock: historical performance

IWM Fees

as of current prospectus

Management Fee	0.19%
Acquired Fund Fees and Expenses	0.00%
Other Expenses	0.00%
Expense Ratio	0.19%

IWM: Portfolio of stocks

Ticker	Name	Weight (%)
SMCI	SUPER MICRO COMPUTER INC	0.53
GTLS	CHART INDUSTRIES INC	0.32
MTDR	MATADOR RESOURCES	0.30
CHX	CHAMPIONX CORP	0.30
LNW	LIGHT WONDER INC	0.29
ELF	ELF BEAUTY INC	0.29
SSD	SIMPSON MANUFACTURING INC	0.29
SPSC	SPS COMMERCE INC	0.29
ONTO	ONTO INNOVATION INC	0.28
MUR	MURPHY OIL CORP	0.28

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Embark on a journey into the realm of gold investments as we present an in-depth guide to the top three gold ETFs in Canada. Tailored to suit diverse investor preferences, each ETF boasts unique features and benefits that set them apart in the market. Join us as we delve into these options, unraveling the reasons that make them the best in the Canadian gold ETF landscape.

Best Gold ETF Canada

Sprott Physical Gold Trust (PHYS)

Investment Objective and Goal

The Sprott Physical Gold Trust (PHYS) stands as a unique investment vehicle specifically created to invest and hold substantially all of its assets in physical gold bullion. Its primary goal is to provide a secure, convenient, and exchange-traded alternative for investors who seek exposure to physical gold without the usual inconveniences associated with direct investment in gold bullion.

Financial Snapshot

Total Net Asset Value: $6.24 Billion
Fees & Expenses: Management Expense Ratio of 0.41%

Reasons to Invest in PHYS	Key Features
Fully Allocated Gold	The Trust exclusively holds fully allocated and unencumbered gold, investing solely in London Good Delivery (“LGD”) physical gold bullion, providing direct and transparent gold investment.
Redeemable for Metals	Unitholders can redeem their units for physical gold bullion monthly, enhancing flexibility and aligning with the Trust’s commitment to tangible gold ownership.
Trustworthy Storage	The custody of the Trust’s metal is entrusted to the Royal Canadian Mint, eliminating leveraged financial institutions, insulating investors from the risk of financial loss.
Potential Tax Advantage	PHYS offers a potential tax advantage for certain non-corporate U.S. investors, with gains realized on unit sales subject to a capital gains rate of 15%/20%, favorable compared to the 28% collectibles rate.
Easy to Buy, Sell, and Own	Trust units can be conveniently purchased on any open trading day for the NYSE or TSX, eliminating the need for physical handling, securing, or protecting the metal, adding to the convenience of gold ownership.
A Liquid Investment	With an average daily trading volume of $40 million, Trust units are highly liquid, providing investors with easy sellability on any open trading day for the NYSE or TSX.

Best Gold ETF Canada

iShares Gold Bullion ETF (CAD-Hedged) (TSX:CGL)

Targeted Exposure to Gold with Currency Hedge

Convenient and Cost-Effective Gold Exposure

Investors seeking targeted exposure to the price of gold while mitigating currency risk often turn to the iShares Gold Bullion ETF. This meticulously crafted fund is designed to mirror the performance of the gold bullion market, offering investors an efficient way to participate in potential gold price movements without being susceptible to fluctuations in the Canadian dollar.

Convenience of Physical Gold Bullion

At the core of its appeal is the provision of convenient and cost-effective exposure to physical gold bullion. By directly holding gold bullion, the ETF eliminates the need for investors to engage in the physical purchase, storage, and security of gold. This approach transforms gold investment into a practical and easily tradable asset, aligning with modern investors’ preferences for simplicity and efficiency.

Diversification and Inflation Hedge

Diversification for Risk Mitigation

The iShares Gold Bullion ETF stands as a valuable tool for diversification within investment portfolios. Gold, historically recognized as a “safe-haven” asset, exhibits a low correlation with traditional asset classes like stocks and bonds. Incorporating gold into a diversified portfolio can potentially reduce overall risk and enhance stability, particularly during periods of economic uncertainty.

Safeguard Against Inflation

In addition to diversification benefits, this ETF is positioned as a potential safeguard against inflation. Gold has traditionally served as a hedge during periods of currency devaluation or rising prices. Investors concerned about the eroding effects of inflation on purchasing power may find this ETF strategically aligned to help protect and preserve wealth.

Fees and Net Assets

Management Fee and Expense Ratio

To access these benefits, investors incur a management fee of 0.50%. This fee covers various operational aspects, including research, trading, and administration. The Management Expense Ratio (MER), encompassing the management fee and other operational expenses, stands at 0.55%. These fees are crucial considerations, impacting the overall return on investment.

Assets Under Management

As of November 1, 2023, the iShares Gold Bullion ETF commands a substantial market presence with net assets totaling CAD 710,283,151. This figure indicates the fund’s size and underscores its significance within the market.

Unhedged Variant – iShares Gold Bullion ETF (Non-Hedged) (TSX:CGL.C)

The unhedged version of the iShares Gold Bullion ETF (TSX:CGL.C) shares similarities with its hedged counterpart but deviates in its approach to currency exposure. Unlike the hedged version, the unhedged variant abstains from employing strategies to mitigate the impact of currency fluctuations between the Canadian dollar (CAD) and the U.S. dollar (USD). Investors opting for this variant embrace the potential impact of currency movements on their returns, seeking a more direct and unaltered gold investment experience.

Best Gold ETF Canada

iShares S&P/TSX Global Gold Index ETF (TSX:XGD)

Investment Objective:

The primary goal of the iShares S&P/TSX Global Gold Index ETF (XGD) is to achieve long-term capital growth by closely replicating the performance of the S&P/TSX Global Gold Index, net of expenses. The fund focuses on providing investors with exposure to global securities of companies involved in gold production and related products.

Fees:

XGD charges a management fee of 0.55% and has a Management Expense Ratio (MER) of 0.61%. These fees cover the costs associated with managing the ETF, including tracking the index and maintaining the portfolio.

Holdings:

As of October 31, 2023, XGD’s portfolio consists of key holdings in the gold sector, reflecting significant market value within the Materials sector. The top holdings include:

Newmont (NEM): Materials sector, 14.98% weight
Barrick Gold Corp (ABX): Materials sector, 14.09% weight
Franco Nevada Corp (FNV): Materials sector, 11.74% weight
Agnico Eagle Mines Ltd (AEM): Materials sector, 11.66% weight

These holdings represent major players in the global gold industry, providing investors with exposure to companies contributing substantially to the Materials sector.

Geographic Exposure:

XGD offers geographic diversification in its holdings, spreading across key regions involved in gold production. The geographic exposure as of October 31, 2023, is as follows:

Canada: 66.99%
United States: 19.01%
South Africa: 11.03%

This diversified geographic exposure allows investors to access gold-producing companies from different regions, mitigating risks associated with any single geographical area.

Considerations for Investors:

Gold Price Sensitivity: XGD’s performance is closely tied to the movements in the price of gold. Investors should be mindful of factors influencing gold prices, as they directly impact the fund’s returns.

Sector Risk: Concentrating on the gold sector, XGD is exposed to risks specific to this industry, including commodity price fluctuations, geopolitical events, and operational challenges faced by mining companies.

Global Economic Factors: Economic conditions worldwide can significantly impact the demand for gold and the profitability of gold producers. Staying informed about macroeconomic trends is crucial for investors considering XGD.

The iShares S&P/TSX Global Gold Index ETF (XGD) is strategically designed to provide investors with exposure to the global gold sector, aiming for long-term capital growth.

Best Gold ETF Canada

Investment Objective:

The iShare Core S&P 500 ETF (IVV) stands out as a premier option for investors seeking exposure to large, established U.S. companies. The fund’s primary objective is to track the investment results of an index composed of large-capitalization U.S. equities, making it a robust choice for those looking for stability and growth in their investment portfolios.

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Fees and Competition: Why IVV?

When it comes to fees, IVV shines as a low-cost, tax-efficient option, with a management fee of just 0.03%. This fee structure is particularly appealing for investors aiming for cost-effective, long-term investment strategies. The expense ratio, which includes management fees, acquired fund fees, and other expenses, also stands at a minimal 0.03%, making IVV a compelling choice for savvy investors.

In comparison to its counterparts in the Style Box – Large Cap Blend segment, IVV faces competition from other notable ETFs like Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF (SPY). All three track the same S&P 500 index, offering exposure to the 500 largest cap U.S. stocks. However, IVV stands out with its competitive fee structure, giving investors an edge in terms of cost efficiency.

Exposure to Large, Established U.S. Companies:

IVV’s unique selling proposition lies in its focus on providing investors with exposure to the Style Box – Large Cap Blend segment of the market. By investing in this ETF, individuals gain access to 500 of the largest capitalization U.S. stocks, offering a well-rounded portfolio that reflects the performance of the large-capitalization sector of the U.S. equity market.

Use at the Core of Your Portfolio to Seek Long-Term Growth:

For investors looking to build a robust, long-term growth-oriented portfolio, IVV is an ideal candidate to consider. The fund’s strategy of investing at least 80% of its assets in the component securities of the S&P 500 index ensures that investors are well-positioned for sustained growth in the large and mid-cap sectors of the U.S. equity market.

MER and Asset under management

Name	SPDR S&P 500 Trust ETF SPY	Vanguard S&P 500 ETF VOO	iShares S&P 500 ETF IVV
Expense Ratio	0.0945%	0.03%	0.03%
AUM	$418.9B	$323.4B	$336.5B
Fund Manager	State Street Global Advisors	Vanguard	Blackrock

iShare Core S&P 500 ETF vs similar ETFs

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While Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF (SPY) present viable alternatives, IVV distinguishes itself with its compelling fee structure. VOO has a similar expense ratio of 0.03%, but SPY charges a higher 0.09%. Furthermore, despite VOO having $333.69 billion in assets and SPY having $421.08 billion, IVV’s competitive fee advantage makes it an attractive choice for cost-conscious investors.

In conclusion, the iShares Core S&P 500 ETF (IVV) stands as a well-balanced. It’s a cost-effective investment option for those seeking exposure to large-cap U.S. companies. With its low fees, tax efficiency, and focus on long-term growth, IVV offers a compelling proposition for investors.

Historical performance – IVV vs VOO vs SPY

Updated daily – iShare Core S&P 500 ETF

iShares Core S&P 500 ETF – Profile

Updated daily

52 weeks high and low – iShare Core S&P 500 ETF

Dividend history – iShares Core S&P 500 ETF

Amount	Ex-Div Date	Record Date	Pay Date	Declare Date

1.9870	9/26/2023	9/27/2023	10/2/2023	11/25/2022
1.3386	6/7/2023	6/8/2023	6/13/2023	11/25/2022
1.6479	3/23/2023	3/24/2023	3/29/2023	11/25/2022

iShares Core S&P 500 ETF Holdings

Ticker	Name	Sector	Weight
AAPL	APPLE INC	Information Technology	7.34
MSFT	MICROSOFT CORP	Information Technology	7.24
AMZN	AMAZON COM INC	Consumer Discretionary	3.47
NVDA	NVIDIA CORP	Information Technology	3.21
GOOGL	ALPHABET INC CLASS A	Communication	2.12
META	META PLATFORMS INC CLASS A	Communication	1.96
GOOG	ALPHABET INC CLASS C	Communication	1.82
BRKB	BERKSHIRE HATHAWAY INC CLASS B	Financials	1.72
TSLA	TESLA INC	Consumer Discretionary	1.70
UNH	UNITEDHEALTH GROUP INC	Health Care	1.31

Sector allocation – iShares Core S&P 500 ETF

Sectors	IVV	S&P 500 Index
Information Technology	27.92%	28.11%
Health Care	13.57%	13.26%
Financials	12.51%	12.53%
Consumer Discretionary	10.08%	10.73%
Industrials	8.3%	8.6%
Communication Services	8.69%	8.37%
Consumer Staples	6.9%	6.66%
Energy	4.26%	4.15%
Utilities	2.64%	2.58%
Real Estate	2.37%	2.53%
Materials	2.43%	2.47%

Is IVV a good ETF to invest in?

Yes, IVV can be a good ETF to invest in, especially for investors seeking exposure to large, established U.S. companies. It offers a cost-effective and tax-efficient way to access 500 of the largest cap U.S. stocks. The low expense ratio of 0.03% makes it an attractive option for those looking to minimize costs while maintaining a long-term growth focus. Additionally, when compared to similar ETFs like VOO and SPY, IVV’s competitive fee structure enhances its appeal. However, as with any investment, it’s essential for investors to consider their individual financial goals, risk tolerance, and overall investment strategy before making a decision.