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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

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HCA ETF – Stock review updated daily

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HCA ETF – Stock review updated daily

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HCA Stock Profile

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Historical performance vs similar ETFs

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HCA Stock 52 weeks high and low

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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.

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IWM Stock: historical performance

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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.

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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.

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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.

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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.

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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

All-in-one ETFs are the Best ETF Canada

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

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Updated daily – iShare Core S&P 500 ETF

iShares Core S&P 500 ETF – Profile

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Updated daily

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

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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.

VAB ETF: Investment objective

Launched in 2011, the Vanguard Canadian Aggregate Bond Index (VAB ETF) is a standout in the Canadian bond market, amassing nearly $4 billion in assets. This ETF employs a passive strategy, tracking the Bloomberg Global Aggregate Canadian Float Adjusted Bond Index and investing in investment-grade bonds across Canada. What sets VAB apart is its low 0.09% Management Expense Ratio (MER), an impressive 3.55% distribution yield, and a commitment to excellent credit quality. Notably, VAB’s MER is tied for the lowest on this list. The fund’s weighted average duration aligns with its counterparts at 7.4 years, providing a balanced approach.

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Historical performance

ETF	Div Yld
VAB	3.12%

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Historical performance updated daily

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Why Bond ETFs lost value in the past 2 years?

In the realm of financial markets, the dynamics of bonds in the face of rising interest rates are crucial to understand. While bond prices may experience declines in such scenarios, their appeal lies in the reliability of interest payments and the eventual return of capital upon maturity. Bond Exchange-Traded Funds (ETFs) offer an intriguing alternative, combining low-cost benefits with diversified exposure to the bond market. However, unlike individual bonds, ETFs lack a fixed maturity date.

Designed with long-term investors in mind, bond ETFs provide a cost-effective solution, delivering competitive yields that surpass the returns from keeping funds in idle cash. The strength of these ETFs lies in their ability to navigate various interest rate cycles, offering a dynamic approach to bond investing. Diversification is a key advantage, spreading risk across a portfolio of bonds and enhancing stability compared to holding individual bonds.

While individual bonds assure a fixed return of capital, bond ETFs present a more flexible and diversified strategy. This makes them particularly appealing to investors with extended time horizons, seeking a balance between regular income, potential capital appreciation, and risk mitigation through diversification. In essence, the choice between individual bonds and bond ETFs hinges on the investor’s goals, risk tolerance, and preference for a dynamic or fixed approach to capital deployment.

VAB MER

ETF	MER* %
Vanguard Canadian Aggregate Bond Index	0.32

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VAG vs Comparable Bond ETFs

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VAB ETF Stock Profile

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Updated daily

VAB Stock 52 weeks high and low

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Updated daily

VAB ETF Distribution history

Ex-div Date	Record Date	Payment Date	Cash Distribution per Unit
28 Sep 2023	02 Oct 2023	10 Oct 2023	$0.053986
31 Aug 2023	01 Sep 2023	11 Sep 2023	$0.062576
31 Jul 2023	01 Aug 2023	09 Aug 2023	$0.054542
30 Jun 2023	04 Jul 2023	11 Jul 2023	$0.056222
31 May 2023	01 Jun 2023	08 Jun 2023	$0.061588

Consult issuers’ website for up-to-date data

The BMO Equal Weight US Banks Index (ZBK ETF) is index fund that invests primarily in the US banking sector. It’s ideal for long term investors who are bullish on the US banking sector. Index ETFs are quite popular mainly because of their low fees and straightforward investment strategy.

The manager of the fund builds a portfolio designed to replicate, to the extent possible, the performance of the Solactive Equal Weight US Bank Index, net of expenses. The Fund invests in and holds the Constituent Securities of the Index in the same proportion as they are reflected in the Index.

Methodology used by Solactive Equal Weight US Bank Index

The index includes companies that fulfill the following criteria:

Current constituent of the Solactive US Broad Market Index.
For new index constituents there must be a minimum market capitalization of at least USD. 10 billion, for current index constituents the minimum market capitalization must be at least USD 7.5 billion.
Minimum Average Daily Value Traded of USD 10 million (past 3 months).
Must be a Commercial Banks or a Savings Institutions

The Solactive Equal Weight US Bank Index is a financial index that measures the performance of banks listed on major US stock exchanges. It is an equal-weighted index, which means that each stock in the index is given equal weighting, regardless of its market capitalization. This differs from market capitalization-weighted indices, where stocks with larger market capitalizations have a greater influence on the index’s performance.

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Current market conditions (US banking sector)

The collapse of Silicon Valley Bank (SVB) in mid-March highlights the dangers of aggressive central bank interest rate hikes. SVB’s main problem was its large holding of long-duration bonds, which lost value as bond yields rose in 2022. This has little to do with the bank failures that occurred during of the 2008 financial crisis. These were mainly due to losses on mortgage-backed securities.

The Fed’s new term funding program should prevent the SVB’s problems from circulating on other banks, but the episode highlights the dangers caused by rapid monetary tightening.

Historical performance

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Historical performance updated daily

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ZBK MER

ETF ZBK	MER* 0.38%

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ZBK Stock Profile

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Updated daily

ZBK Stock 52 weeks high and low

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Updated daily

ZBK ETF Holdings

weight (%)	Name
9.17%	FIRST CITIZENS BANCSHARES INC/NC
6.35%	FIRST HORIZON CORP
5.95%	CITIGROUP INC
5.88%	HUNTINGTON BANCSHARES INC/OH
5.84%	WELLS FARGO & CO
5.83%	GOLDMAN SACHS GROUP INC/THE
5.71%	BANK OF AMERICA CORP

Consult issuers’ website for up-to-date data

In this post, we will review a popular index ETF on the TSX: the Ishares S&P TSX 60 Index ETF (XIU Stock). We will first explain what’s an index ETF. Then, we will discuss XIU’s historical performance, fees and holdings. Finally, we will compare XIU against similar ETFs.

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Updated daily – XIU Stock

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What’s an index ETF

There are several types of ETFs. Index ETFs are the king of the hill. The first-ever ETF introduced to a North American Exchange was an index ETF. Index ETFs offer exposure to many securities and sometimes to a whole stock exchange at a meager cost. Their main goal is to acquire, on your behalf, all the securities that constitute a specific index to achieve the same return of the tracked index minus the fees.

Advantage of Index ETFs

One significant advantage of owning an index ETF is low fees. The manager is simply replicating the index’s performance either by acquiring directly or indirectly (using derivatives) the constituents of the index. There is no additional effort involved in the selection process, thus no need to generously compensate the portfolio manager.

Does an index ETF pay dividend?

Yes they do. Since Index ETFs holds all shares of companies part of the index, if these companies pay dividends then a dividend will be distributed. See below the performance table, the dividend yield is included.

Index definition

S&P/TSX Capped Composite Index (Index)

includes over 200 top-ranked Canadian stocks, representing approximately 95% of the Canadian equity market. Constituent securities must pass minimum float-adjusted and liquidity screens to qualify and maintain membership in the Index. Index weights are capped at 10% of the Index’s float-adjusted market capitalization and are reviewed quarterly.

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S&P/TSX 60

An index constituted of the 60 largest companies in the Toronto Stock Exchange

XIU Stock Investment objective

iShares S&P/TSX 60 Index ETF as its’ name implies, it’s a fund that is constituted with the 60 largest companies that are members of the TSX. It’s the most popular ETF in Canada with 10 Billion dollars in Assets. This ETF is representative of the Canadian economy which is dominated by the Energy and Financial sector as you can see below n the sector allocation table.

The number of holdings for the ETF is 60. It has the highest MER in the list but this did not really impact its long term performance in comparison with the other funds.

XIU Stock historical performance

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Updated daily – XIU Stock

XIU Stock 52 weeks high and low

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How to pick the Best ETF that fits your need?

Diversification

The purpose of diversification is to minimize risk. XIC stock is the most diversified index ETFs with over 200 holdings. Next comes XIU with 60 holdings.

Taxation

Both XIC and XIU distribute taxable Canadian dividends. There is no difference in terms of tax impact.

If you are looking for an ETF that tracks the S&P60 index with no dividend distribution, then take a look at HXT. The latter is structured so that all income distributions are deferred. No dividend distribution means no tax.

Liquidity

There are two aspects to consider:

liquidity of holdings: XIU comes on top as its holdings are made up of the 60 largest Canadian companies listed on the Toronto Stock Exchange;
the liquidity of the ETF (average difference between the price ‘Bid’ and ‘Ask’ or what is commonly called the ‘spread’): Both XIU and XIC offer great liquidity.

XIU Holdings

Name	Weight (%)
ROYAL BANK OF CANADA	7.76
TORONTO DOMINION	6.24
ENBRIDGE INC	4.51
CANADIAN PACIFIC RAILWAY LTD	4.24
CANADIAN NATIONAL RAILWAY	4.18
BANK OF MONTREAL	3.63
BANK OF NOVA SCOTIA	3.46
CANADIAN NATURAL RESOURCES LTD	3.45
SHOPIFY SUBORDINATE VOTING INC CLA	3.26
BROOKFIELD CORP CLASS A	2.59

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

XIU Sector allocation

Type	Fund
Financials	33.95
Energy	16.88
Industrials	12.13
Materials	11.03
Information Technology	7.18
Communication	5.91
Consumer Staples	4.55
Consumer Discretionary	3.70
Utilities	3.58
Real Estate	0.66

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

How can I buy an index ETF?

It’s the same process as buying a stock. You need simply to access the online website of your broker and place the order using the ticker/symbol of the ETF

Who are the main issuers of ETFs in Canada?

BMO Asset Management
Claymore Investments
BlackRock Inc (iShares)
Horizons ETFs Management
Vanguard Investments Canada Inc.

Why should I consider buying an index ETF?

The quick answer is diversification. Assume you have 5,000 $, you can’t buy a lot of stocks with that amount (may be 4 or 5). Also, you will incur fees to trade them. Your portfolio will be certainly too dependent on a performance of 1, 2 …or even 5 sectors that your stocks are in. If you buy with that 5,000 $ an ETF that tracks let’s say the TSX/S&P 60, it basically means you just bought share in 60 of the largest companies that are trading in the stock exchange in Canada. It’s clearly a powerful tool to diversify your portfolio with a small amount of money.