Investment objective

The Energy Select Sector SPDR® Fund (XLE Stock) invests in energy stocks that are part of the S&P 500. In other words, by holding XLE you’re investing in the largest US Energy companies. It’s an easy and effective to way to gain exposure to a diversified portfolio of energy stocks.

XLE is a passive ETF. The role of the managers is to acquire constituents of the Energy Select Sector Index with the S&P 500. In essence the fund invests in the follwing fields:

  • oil
  • gas and consumable fuels
  • energy equipment and services

XLE is a large fund with over 30 Billion dollars in Assets.

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Historical performance

Updated daily

XLE Holdings

Name%
Assets
Exxon Mobil Corp23.70%
Chevron Corp20.03%
ConocoPhillips4.64%
EOG Resources Inc4.46%
Schlumberger Ltd4.43%
Marathon Petroleum Corp4.17%
Pioneer Natural Resources Co4.08%
Phillips 664.07%
Kinder Morgan Inc Class P3.85%
Williams Companies Inc3.50%
XLE Stock portfolio

Is XLE a good investment?

XLE is an energy play. Meaning, if you are bullish on the energy sector, then XLE is great choice. It invests only in large cap and well established energy companies.

XLE is great if you are looking to diversify your portfolio at a cheap cost.

The main drawback of the fund is the fact that half of the portfolio is comprised of Exon and Chevron. Since the fund is market weighted, the two largest oil companies in the US make up half of its portfolio.

In this post, we will review a popular sector ETF: the iShares U.S. Regional Banks ETF (IAT). We will first explain what’s a sector ETF. Then, we will discuss IAT’s historical performance, fees and holdings. Finally, we will compare IAT against similar ETFs.

Updated daily – IAT Stock

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What’s a sector focused ETF

A sector-focused ETF (Exchange-Traded Fund) is a type of investment fund that holds a diversified portfolio of stocks within a specific sector of the economy, such as technology, healthcare, or energy. ETFs are designed to track the performance of a particular sector, allowing investors to gain exposure to a specific industry or market segment without having to pick individual stocks.

Sector-focused ETFs are popular among investors who want to target specific areas of the economy and gain exposure to those areas. They can provide a more diversified and less risky way to invest in a particular sector than buying individual stocks. In addition, they offer the convenience and liquidity of trading on an exchange like a stock.

IAT Stock Investment objective

The iShares U.S. Regional Banks ETF (IAT) is an exchange-traded fund offered by BlackRock’s iShares. IAT invests in a diversified portfolio of regional bank stocks in the United States.

The ETF tracks the Dow Jones U.S. Select Regional Banks Index, which is composed of regional banks that are listed on U.S. exchanges.

IAT ETF holds over 50 different stocks, with its largest holdings including regional banking giants like PNC Financial Services, Fifth Third Bancorp, and Regions Financial Corporation. The ETF’s holdings are well diversified across various regions of the United States.

The IAT ETF seeks to provide investors with exposure to the regional banking sector, which can offer potential opportunities for growth and income. Overall, the IAT ETF provides investors with a way to gain diversified exposure to the regional banking sector in the United States.

IAT vs similar ETFs

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IAT Stock historical performance

Updated daily – XIU Stock

IAT Stock 52 weeks high and low

IAT Holdings

TickerNameWeight
(%)
PNCPNC FINANCIAL SERVICES GROUP INC13.78
USBUS BANCORP13.46
TFCTRUIST FINANCIAL CORP12.08
MTBM&T BANK CORP5.38
RFREGIONS FINANCIAL CORP4.65
FITBFIFTH THIRD BANCORP4.53
HBANHUNTINGTON BANCSHARES INC4.33
CFGCITIZENS FINANCIAL GROUP INC4.26
KEYKEYCORP3.08
FHNFIRST HORIZON CORP2.50

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

PFF ETF: Investment objectif

The iShares Preferred and Income Securities ETF offers exposure to U.S. preferred stocks. It’s ideal for conservative investors who are pursuing income.

The main objective sought is a higher return compared to an investment in bond funds. Both bonds and preferred shares are considered fixed income asses but these two investment vehicles are quite different. In a nutshell, preferred shares are hybrid securities that have both the characteristics of stocks and bonds.

Finally, PFF is an index ETF and it’s tracking the ICE Exchange-Listed Preferred & Hybrid Securities Index. This index includes a select group of exchange-listed,
hybrid securities and convertible preferred securities. The selection criteria includes: market capitalization, industry weightings, fundamental characteristics (such as return variability and yield) and liquidity.

Updated daily – PFF ETF

US Stocks that pay monthly dividends (Full list by sector)

What’s a preferred stock or preferred shares

When you own a share of a company, you are part of the business. You have the right to vote and participate in shareholders’ annual meetings. Your return will depend solely on the performance of the company in the stock market and its dividends. It’s rewarding, but it’s also risky. Preferred shares are a bit different. You don’t get to vote, and you have no ownership in the business. Your preferred share entitles you priority to dividends based on a percentage agreed upon in advance. The ‘priority’ means the company needs to pay you first before paying the regular shareholders. In case of bankruptcy, you have the first claim on the assets of the company. So, in essence, a preferred share is a kind of hybrid product that shares specific characteristics of bonds (a bit of safety) and some of the regular claims (potential for appreciation).

Investors can invest directly in preferred shares as they trade like stocks. Or, they can buy preferred shares ETF to achieve diversification and reduce risk.

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Preferred shares features and risks

A preferred share grants the holder a percentage return based on its par value. There are several risks associated with preferred shares:

  • The issuer can decide not to pay dividends in a particular year because of bad financial results. Unless you hold a cumulative right, you will not receive your dividends for that year;
  • The preferred share price tends to rise if the price of the regular share rises or lose value if the opposite scenario occurs;
  • Preferred shares are sensitive to interest rates. When interest rates are low, preferred shares are in demand because their dividend is much higher than other fixed-income products. If the interest rate rise, investors will turn to safer fixed-income products such as bonds. Consequently, the price of preferred shares will decline;
  • An issuer of preferred shares can decide to recall his shares or offer the option to convert them to regular stocks anytime. This is assuming the shares that were issued are ‘callable’.

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Should buy PFF or invest directly in preferred shares

Of course, an investor can choose to invest directly in preferred shares because they are traded in the same way as regular stocks. However, this kind of investment requires some financial knowledge. This is why acquiring an ETF is most likely the best way to diversify and gain exposure to these hybrid securities.

PFF ETF Fees

Management Fee0.45%
Other Expenses0.00%
Expense Ratio 0.45%

PFF Price and historical performance

Price

Dividend yield 6.46% as per Yahoo finance (May 23rd 2023)

CIBC investors' edge

Historical performance

PFF Sector allocation

TypeFund
Financial Institutions66.85
Industrial19.12
Utility13.29
Agency0.38
Cash and/or Derivatives0.35

La carte macrédit (mycredit) de la Banque Nationale est une carte de crédit conçue pour répondre aux besoins des consommateurs à la recherche d’une carte simple et efficace. Cette carte offre une variété de fonctionnalités pratiques, ainsi que des taux d’intérêt compétitifs et des options de récompenses pour aider les clients à gérer leur argent avec efficacité.

Sommaire Carte macrédit de la Banque Nationale

Faire la demande
AvantagesDescription
Options de taux d’intérêtLes clients peuvent choisir entre un taux d’intérêt fixe ou variable selon leur préférence.
RécompensesLes titulaires de carte peuvent gagner des points pour chaque dollar dépensé, qui peuvent être échangés contre des remises en argent, des voyages, des produits électroniques, etc.
Programme de récompenses simpleLe programme de récompenses est simple et facile à comprendre, ce qui facilite la gestion des points accumulés et leur utilisation.
Protection contre la fraudeLa carte offre une protection contre les achats frauduleux et est équipée d’une puce de sécurité pour protéger les informations de paiement.
Fonctionnalités pratiquesLa carte offre des alertes de solde, des relevés en ligne, une assurance voyage et une assurance-vie temporaire en cas de décès accidentel ou de mutilation.

En somme, la carte Mycredit de la Banque Nationale offre une gamme complète d’avantages, notamment une flexibilité de taux d’intérêt, des récompenses attrayantes, un programme de récompenses simple et facile à comprendre, une protection contre la fraude et des fonctionnalités pratiques pour les utilisateurs.

Date de fin de l’offre

Promotion valide du 1er mars 2023 au 30 juin 2023 pour la carte de crédit macréditMD Mastercard de la Banque NationaleMD.

Caractéristiques

Taux variable ou fixe

L’une des principales caractéristiques de la carte Mycredit est la flexibilité qu’elle offre aux titulaires de carte. Les clients peuvent choisir entre un taux d’intérêt fixe ou variable, selon leur préférence. Si vous cherchez à maintenir un paiement mensuel stable et prévisible, le taux d’intérêt fixe peut être une option judicieuse. Cependant, si vous êtes prêt à prendre un peu plus de risques pour potentiellement économiser de l’argent, le taux d’intérêt variable peut être plus intéressant.

Récompenses

La carte Mycredit offre également une gamme d’options de récompenses pour les clients. Les titulaires de carte peuvent gagner des points pour chaque dollar dépensé avec leur carte, qui peuvent être échangés contre des remises en argent, des voyages, des produits électroniques et bien plus encore. Les points de récompense sont accumulés rapidement, et les clients peuvent également profiter d’offres exclusives sur les achats effectués auprès de certains détaillants.

Un autre avantage de la carte Mycredit est la simplicité de son programme de récompenses. Contrairement à certaines cartes qui peuvent offrir une gamme compliquée de récompenses, la carte Mycredit propose des récompenses simples et faciles à comprendre. Les clients peuvent facilement gérer leurs récompenses et les utiliser pour obtenir des avantages pratiques qui correspondent à leurs besoins.

Offre de remise en argent de 75 $
Vous recevrez une remise en argent de 75 $ si des achats nets de 1 500 $ sont imputés au compte de carte de crédit dans les trois mois suivant l’ouverture du compte. Le compte doit être en règle au moment du versement de la remise en argent.

Assurance

Assurance appareils mobilesLes appareils mobiles neufs, achetés avec votre carte ou dont les abonnements téléphoniques sont payés avec votre carte ou par paiement préautorisé depuis votre compte macrédit, sont protégés contre le vol ou les dommages pour une période maximale de 2 ans. L’indemnisation peut atteindre 1000 $ en cas de bris, de perte ou de vol.
Responsabilité zéroIncluse
Assurances achats contre le vol ou les dommages90 jours suivant la date d’achat
Garantie prolongéePossibilité de doubler la garantie du fabricant (jusqu’à concurrence d’un an additionnel)
Voir site de la Banque Nationale pour les conditions

Protection

La carte Mycredit offre également une protection contre la fraude pour les titulaires de carte. Les clients sont protégés contre les achats frauduleux, ce qui signifie qu’ils ne sont pas responsables des frais frauduleux portés à leur compte. De plus, la carte est équipée d’une puce de sécurité qui protège les informations de paiement de l’utilisateur contre les tentatives de fraude.

Revue de la Carte World Mastercard Tangerine 2023

Fonctionalités

Enfin, la carte Mycredit est livrée avec des fonctionnalités pratiques telles que des alertes de solde, des relevés en ligne et une assurance voyage. Les titulaires de carte peuvent également bénéficier d’une assurance-vie temporaire en cas de décès accidentel ou de mutilation lorsqu’ils utilisent leur carte pour acheter des billets de voyage.

Conclusion

En somme, la carte Mycredit de la Banque Nationale est une carte de crédit simple, efficace et pratique pour les consommateurs qui cherchent à gérer leur argent avec efficacité. Avec ses options de taux d’intérêt flexibles, ses récompenses simples et faciles à comprendre, sa protection contre la fraude et ses fonctionnalités pratiques, cette carte est une excellente option pour ceux qui cherchent une carte de crédit qui offre une grande valeur.

Introduction:

The Canada Pension Plan (CPP) is a vital component of Canada’s social security system, providing financial support to retired and disabled individuals, as well as their surviving beneficiaries. If you’re eligible for CPP benefits or are planning your retirement, it’s essential to stay informed about the payment dates and other key details. In this post, we’ll provide an overview of CPP payment dates for 2023 and some essential information about the program.

What is CPP?

The Canada Pension Plan is a contributory, earnings-related social insurance program that provides financial assistance to Canadians in retirement, disability, or upon the death of a contributor. Workers and their employers make contributions to the CPP throughout their working years, building up a fund that pays out benefits when needed.

CPP Payment Dates 2023:

CPP payments are typically made on a monthly basis, and the payment dates for 2023 are as follows:

  1. January 27, 2023
  2. February 24, 2023
  3. March 29, 2023
  4. April 26, 2023
  5. May 26, 2023
  6. June 28, 2023
  7. July 27, 2023
  8. August 29, 2023
  9. September 27, 2023
  10. October 27, 2023
  11. November 28, 2023
  12. December 21, 2023

Please note that these dates are subject to change, so it’s a good idea to check with Service Canada or visit their website to confirm the payment schedule.

Types of CPP Benefits:

The CPP offers several types of benefits, including:

  1. Retirement Pension: This is the most common benefit, providing income to individuals who have contributed to the CPP and are at least 60 years old.
  2. Disability Benefits: Available to those who have contributed to the CPP and are unable to work due to a severe and prolonged disability.
  3. Survivor’s Pension: Paid to the surviving spouse or common-law partner of a deceased CPP contributor.
  4. Children’s Benefits: These benefits are available for dependent children of CPP contributors who are disabled or deceased.
  5. Death Benefits: A one-time payment to the estate of a deceased CPP contributor.

How to Apply for CPP Benefits: To apply for CPP benefits, you can do so online through the Service Canada website or by filling out a paper application. It’s advisable to apply well in advance of when you want to start receiving benefits, as the processing time can vary.

Should You Take Your CPP At Age 60, 65, Or 70?


Deciding when to begin receiving your Canada Pension Plan (CPP) benefits—whether at age 60, 65, or 70—requires careful consideration of several factors. First and foremost, assess your immediate financial needs. If you require income to cover essential expenses, taking CPP benefits at age 60 may be necessary.

Secondly, take into account your health and life expectancy. If you anticipate a longer life, delaying CPP benefits can result in larger monthly payments over the long term. Conversely, if you have health concerns or a family history of shorter lifespans, taking benefits earlier might be wiser.

Your employment status matters as well. If you plan to continue working, note that benefits claimed before your full retirement age may be reduced if your earnings surpass a certain threshold. After reaching your full retirement age (usually 65 or 67, depending on your birth year), this reduction no longer applies.

Consider your spouse or partner too; the survivor’s pension is crucial for them. Taking CPP benefits later can lead to a more substantial survivor’s pension.

One of the primary benefits of deferring your Canada Pension Plan (CPP) benefits is the potential to receive a larger monthly payment. When you apply for CPP at the standard age, typically around 65, you will receive the full, unreduced pension amount. However, if you choose to apply for CPP early at age 60, your monthly payment will be reduced.

The reduction in payments for taking CPP early is based on the number of months you receive benefits before your standard retirement age. Each month you take CPP before your standard retirement age, your benefit is reduced by a certain percentage. Conversely, for every month you delay CPP after your standard retirement age, your benefit increases.

By deferring CPP benefits, you effectively invest in a higher monthly income later in your retirement years. This can be advantageous if you anticipate a longer life expectancy or if you have other sources of income to cover your expenses during the early years of retirement.

Conclusion:

The Canada Pension Plan is a crucial support system for Canadians in retirement, disability, and during times of loss. Knowing the CPP payment dates for 2023 and understanding the different types of benefits available can help you plan your finances and ensure you receive the support you need. Stay informed, apply on time, and make the most of this important program to secure your financial future.

In the realm of investment opportunities, Index ETFs have gained prominence as a prudent choice for a diverse range of investors. This comprehensive guide aims to delve into the specifics of three offerings from Horizons: HXT Horizons S&P/TSX 60™ Index ETF, HXS.U Horizons S&P 500® Index ETF and the HXQ Horizons NASDAQ-100® Index ETF. Let’s objectively examine the fundamentals, objectives, and market positioning of these ETFs.

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Why Opt for Index ETFs?

Before delving into the particulars of HXT and HXS.U, it’s essential to understand the rationale behind the increasing inclination towards Index ETFs. These investment instruments offer diversification, cost-effectiveness, and liquidity, making them an appealing option for investors of varying experience levels. The ability to replicate the performance of a specific index provides broad market exposure.

S&P/TSX 60

The S&P/TSX 60 is a benchmark index comprised of the 60 most significant companies listed on the Toronto Stock Exchange (TSX). These companies, collectively representing a diverse array of industries, are selected based on their market capitalization, making the index a reliable gauge of the overall performance of the Canadian stock market.

S&P 500®

The S&P 500 stands as a preeminent benchmark index in the realm of U.S. equity markets. Comprising 500 of the most prominent publicly traded companies, this index is representative of the American business landscape. Inclusion in the S&P 500 is based on various factors, with market capitalization being a pivotal criterion. As a result, the S&P 500 provides investors with exposure to the broader U.S. stock market.

NASDAQ-100®

The NASDAQ-100® Index holds a distinctive position as a premier benchmark in the world of technology and innovation. Comprised of 100 non-financial companies listed on the NASDAQ stock exchange, this index is renowned for its focus on the forefront of technological advancement.

Notable constituents include giants like Apple, Microsoft, Amazon, Alphabet (Google’s parent company), Facebook, and Tesla. These companies are leaders in sectors such as technology, e-commerce, electric vehicles, and entertainment.

HXT Horizons S&P/TSX 60™ Index ETF

Objective: HXT seeks to replicate, to the extent possible, the performance of the S&P/TSX 60™ Index (Total Return), net of expenses. Established on September 14, 2010, this ETF is crafted to gauge the performance of the large-cap segment in the Canadian equity market.

CIBC Investors' edge

Key Information:

  • Inception Date: September 14, 2010
  • Net Assets: $3,314,060,954

Sectors Allocation:

  1. Financials: 33.84%
  2. Energy: 18.61%
  3. Industrial Services: 12.68%
  4. Materials: 10.05%

With a steadfast focus on the Canadian equity market, HXT strategically allocates across sectors, emphasizing financials, energy, and industrial services. The ETF’s inception in 2010 underscores its track record in mirroring the S&P/TSX 60™ Index’s performance.

HXS.U Horizons S&P 500® Index ETF

Objective: HXS seeks to replicate, to the extent possible, the performance of the S&P 500® Index (Total Return), net of expenses. Established on November 30, 2010, this ETF is designed to measure the performance of the large-cap segment in the U.S. equity market.

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Key Information:

  • Net Assets: $1,985,996,030
  • Inception Date: November 30, 2010

Sectors Allocation:

  1. Information Technology: 27.46%
  2. Health Care: 13.36%
  3. Financials: 12.81%
  4. Consumer Goods: 10.67%

As a significant player in the U.S. equity market, HXS.U distinguishes itself with a focus on sectors like Information Technology and Health Care. The ETF, established in 2010, offers investors access to the dynamic landscape of the S&P 500® Index.

HXQ Horizons NASDAQ-100®

HXQ aims to mirror the performance of the NASDAQ-100® Index (Total Return), factoring in expenses. The NASDAQ-100® Index (Total Return) comprises 100 leading nonfinancial companies from both domestic and international markets listed on The NASDAQ Stock Market. The objective of HXQ is to deliver a return that closely aligns with the aforementioned index after accounting for costs. This implies that investors in HXQ can potentially gain exposure to the diverse set of major companies within the NASDAQ-100, capturing the combined movements of these influential entities.

CIBC Investors' edge


Inception Date: April 19, 2016

Net Assets: $470,876,942

Sectors Allocation:

Information Technology48.58%
Communication Services16.01%
Consumer Goods14.13%
Health Care7.12%

Conclusion: Informed Investment Choices

In conclusion, HXT Horizons S&P/TSX 60™ Index ETF, HXS.U Horizons S&P 500® Index ETF and HXQ Horizons NASDAQ-100® emerge as compelling options in the Index ETF landscape. As investors navigate market complexities, these ETFs offer simplicity, diversification, and the potential for long-term growth. Understanding their objectives, historical performance, and sector allocations empowers investors to make informed decisions aligned with their financial goals. Whether considering the Canadian or U.S. equity market, Horizons’ Index ETFs present an opportunity to participate in the growth of large-cap segments with strategic sector exposure.

VEE ETF Investment objective

For Canadian investors seeking to diversify their portfolio, the Vanguard FTSE Emerging Markets All Cap Index ETF offers a valuable opportunity. This ETF aims to mirror the performance of a comprehensive emerging markets index, including the rapidly growing Chinese A Inclusion market. It provides exposure to a wide spectrum of companies, encompassing large, mid-sized, and small-cap stocks, all within emerging markets. By investing directly or indirectly in these assets, Canadian investors can enhance their portfolio’s diversification and tap into the potential growth opportunities presented by emerging markets.

CIBC Investors' edge

FTSE Emerging Markets All Cap China A Inclusion Index

The FTSE Emerging Markets All Cap China A Inclusion Index is a market-capitalization weighted index that tracks the performance of stocks across various market segments, including large, mid, and small-cap stocks within emerging markets.

The FTSE Emerging Markets All Cap China A Inclusion Index encompasses a diverse set of attributes, making it a compelling option for investors. With a substantial number of constituents totaling 4,535, this index provides broad exposure to emerging market opportunities. The impressive Net Market Capitalization (USDm) of 7,051,011 demonstrates the significant market value represented within the index.

Moreover, the index showcases an attractive dividend yield of 2.78%, offering the potential for income generation. When examining constituent sizes, the index maintains a healthy level of diversity. The average constituent size, at 1,555 USDm, signifies a well-rounded mix of companies, while the largest constituent, at 413,744 USDm, adds stability without overwhelming the index. Even the smallest constituent at 3 USDm contributes to the index’s inclusivity.

The median size of 298 USDm further emphasizes the balanced nature of the index’s constituents. Additionally, the weight of the largest constituent, comprising 5.87% of the index, remains reasonable, preventing an excessive concentration of risk.

Performance comparison with similar ETFs

CIBC Investors' edge

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Portfolio by Size (VEE ETF)

CaptalizationFundBenchmark+/- Weight
Large54.38%23.50%+ 30.88%
Medium/Large5.94%17.30%− 11.36%
Medium18.09%26.00%− 7.91%
Medium/Small8.76%23.30%− 14.54%
Small11.16%9.00%+ 2.16%

Sector allocation

SectorFundBenchmark+/- Weight
Technology22.8%22.42%
Financials20.72%20.8%
Consumer Discretionary13.72%13.68%
Industrials8.71%9.05%
Basic Materials7.39%7.43%
Consumer Staples6.22%6.25%
Energy6.08%5.95%
Health Care4.25%4.26%
Telecommunications3.87%3.9%
Utilities3.28%3.28%
Real Estate2.97%2.93%
Other0.0%0.07%
Total100.0%100.0%

CIBC Investors' edge

Portfolio of holding VEE ETF

Holding Name% of Market ValueSectorMarket AllocationMarket ValueShares
Taiwan Semiconductor Manufacturing Co. Ltd.4.86%SemiconductorsTW$80,644,477.883,473,418
Tencent Holdings Ltd.3.52%Consumer Digital ServicesKY$58,318,056.151,041,501
Alibaba Group Holding Ltd.2.72%Diversified RetailersKY$45,117,442.082,876,980
MKTLIQ1.52%—US$25,147,482.10186,131
SLBBH11421.42%—US$23,491,343.76173,873
Reliance Industries Ltd.1.33%Oil Refining and MarketingIN$21,980,769.27559,966
Meituan1.2%Consumer Digital ServicesKY$19,941,283.74891,780

Does checking my credit report hurt my score?

The fact is checking your credit score is a soft inquiry that does not have any impact on your score. I personally check my credit score at each update which is monthly. It’s a great habit.

How to obtain a free credit report?

Go to Borrowell* They offer a free credit report for all Canadians. You will be able to access your Equifax full report in minutes.

Also Borrowell site includes an educational blog called (Credit coach). The free blog discusses how to improve your credit score.

What is a good score?

See the table score for Equifax:

Equifax scoreInterpretation
From 580 to 669Fair
670 to 739Good
Above 740 to 799Very good
Above 800Excellent

What a good score really means?

A good score means you manage well your debt. In other words:

  • You pay on time your credit card if possible in full;
  • Second, You don’t apply too much for credit (for instance applying for credit cards frequently for bonus offers or travel points can dammage your credit score even if you intend to close the card in the short term)
  • You carry a balance that is managable for you, not maxing your credit cards. Actually a balance above 30% of the your approved credit card limit is not good for your score. You have to keep the balance low and pay more than just the minimum required
  • Pay your balance even if it’s one cent. I was once looking at my credit report and noticed a late payment warning for 2 cents! I called the bank and the rep advised me that there is no difference between one thousand dollar or 1 cent balance, if you’re late it will be noted in your credit report
  • Always keep the first credit card you ever opened. This a major factor in determining your score, the more the system can go back in time, the more trust is put into your credit worthiness

Is a good score enough to get you approved for a mortgage?

It’s a good start however not enough.The bank will ask you to provide for the past two year:

  • Your income tax returns
  • Account where you deposited your savings so they can see you have the minimum required of 5% to own a home
  • Your last paystub
  • Proof of any other income

The bank will then analyse you capacity to reimburse your new mortgage knowing all the information they collected about you.

What does a credit report look like?

On the Borrowell website, beside the score, the report will show your personal information and all your accounts whether chequing accounts or investment accounts. All you credit cards and loans will be shown.

Next to each account, you will have the date it was opened and if it’s still active or not and the balance (with the monthly payment if applicable). You will also see notes your bank adds into your credit report.

What to watch for in my credit report?

  • Error in your mame or address;
  • accounts that show active event hough you closed them;
  • Notes left by your bank that are not accurate.

*The Asterix is a reference to an affiliate marketing link. I promote the use of Borrowell services in exchange of a small commission. I recommend only services that I used and satified with.

Investors navigating the world of Exchange-Traded Funds (ETFs) in Canada are often on the lookout for opportunities that align with their financial goals and risk preferences. In this comprehensive guide, we’ll delve into the realm of Index ETFs, specifically those tracking three influential indices: the S&P 500, NASDAQ 100, and the TSX. But first, let’s demystify the concept of Index ETFs. These funds have gained prominence for their ability to replicate the performance of specific market indices, offering investors a diversified and cost-effective approach to gaining exposure to various sectors and regions. In this blog post, we’ll not only unravel the essence of Index ETFs but also present a curated list of the best Canadian ETF funds, categorized by the indices they track.

Why Investors Favor Index ETFs?

Index ETFs directly compete with growth mutual funds, which charge management fees exceeding 2%, and in some cases, reaching 4%. When banks marketed mutual funds, they emphasized active and professional management with the goal of outperforming the benchmark they replicate. Over time, it became evident that the overwhelming majority of fund managers fail to beat the benchmark.

As Warren Buffet has indicated on several occasions, “Beating the index in the long term is very difficult, even for professionals.” A manager may outperform the index in the short term, but to beat it over the long term, they must anticipate the market for 10 years, a feat that approaches the miraculous.

S&P 500

The S&P 500, or the Standard & Poor’s 500, is a market-capitalization-weighted index of the 500 largest publicly traded companies in the United States.

The S&P 500 is an excellent index as most of its constituents are large, well-established American companies, providing diversification across various sectors of the U.S. economy. Widely considered the best measure of the performance of large-cap U.S. stocks, it can be easily used to express an opinion on the overall U.S. economy. In other words, if you are optimistic about the long-term performance of the U.S. economy, it’s likely the best index for you.

All ETFs replicating the performance of the S&P 500 will have the same securities in their assets and in approximately the same proportions as the index itself.

S&P 500 Portfolio and Sector Allocation

TitleWeighting (%)
Apple Inc.5.72
Microsoft Corporation5.25
Amazon.com Inc.3.98
Facebook Inc. Class A2.11
Alphabet Inc. Class A1.84
Alphabet Inc. Class C1.78
Tesla Inc1.52
Berkshire Hathaway Inc. Class B1.45
JPMorgan Chase & Co.1.43
Johnson & Johnson1.27

S&P 500 Official Website

S&P 500 Sector Allocation

  • Information Technology: 27.60%
  • Health Care: 13.44%
  • Consumer Discretionary: 12.70%
  • Communication Services: 10.79%
  • Financials: 10.34%
  • Industrials: 8.47%
  • Consumer Staples: 6.55%
  • Utilities: 2.73%

Nasdaq 100

The Nasdaq-100 is one of the leading large-cap growth indices globally, consisting of 100 of the largest non-financial national and international companies listed on the Nasdaq based on their market capitalization. This index is dominated by companies in the information technology sector.

S&P/TSX 60

An index composed of the 60 largest companies on the Toronto Stock Exchange, dominated by the energy and financial sectors.

S&P/TSX Capped Composite Index

This index includes over 200 top Canadian stocks, representing approximately 95% of the Canadian stock market. Constituent securities must meet minimum float-adjusted criteria and liquidity to be eligible and maintain their membership in the index. Index weights are capped at 10% of the float-adjusted market capitalization of the index and are reviewed quarterly.

FTSE Canada All Cap

The FTSE Canada All Cap Domestic Index is a market-capitalization-weighted index representing the performance of Canadian companies with large, medium, and small market capitalizations. As of February 28, this index included 178 member stocks.

Currency risk coverage

When a manager needs to replicate a U.S. index, such as the S&P 500 or the Nasdaq 100, they are required to acquire these assets in U.S. dollars. Consequently, the fund has to periodically convert the available funds in Canadian dollars into U.S. dollars. The impact of these conversions can be either favorable or detrimental, depending on whether the Canadian dollar has appreciated or depreciated.

Recognizing the desire of many investors to mitigate this currency risk, the majority of ETFs replicating a U.S. index provide a “hedged” version of their funds. In some cases, there is also another version exclusively traded in U.S. dollars. Hedging serves as a form of insurance against currency fluctuations. The scenarios outlined below illustrate the potential outcomes.

 Scenario 1: Value of Canadian
$ appreciated		Scenario 2: Value of Canadian
$ depreciated
Non hedged ETFIndex return
Minus foreign exchange loss		Index return
Plus foreign exchange gains
Hedged ETF

Index returnIndex return
US $ ETFIndex Return
The investor chooses when to convert

Index Return
The investor chooses when to convert

Best Canadian ETF Funds

Best Index ETFs for the S&P 500

MERAUM
BMO S&P 500 Hedged
to CAD Index –ZUE		0.09%1,601
Horizons S&P
500 Index – HXS		0.10%2,408
iShares Core S&P
500 Index – XUS		0.10%3,615
iShares Core S&P 500
Index (CAD-Hedged) – XSP		0.10%8,118
Vanguard S&P
500 Index – VFV		0.09%5,310
Vanguard S&P 500
Index (CAD-hedged) – VSP		0.09%1,915
BMO S&P 500 Index
ETF (ZSP.TO) – ZSP		0.09%9,658
Source Barchart – Best Canadian ETF Funds

Historical performance

Updated daily

Canadian Stocks with Best Dividends

VFV vs XIU: Unveiling the Best ETF for Your Portfolio in 2023

Best Index ETFs for the TSX

NameAUMMER
Ishares S&P TSX 60
Index – XIU		10,1B0.18
Ishares Core S&P TSX
Capped Comp – XIC		9.4B0.06
BMO S&P TSX Capped
Comp – ZCN		7.2B0.06
Horizons S&P/TSX 60™
INDEX – HXT		2.3B0.03
Vanguard FTSE Canada
All Cap – VCN		4.1B0.05
Best Canadian ETF Funds

Source Barchart and TD Market research

Historical performance

Updated daily

VFV vs VGRO – Full review and comparison

HXT ETF Review: Horizons S&P/TSX 60™ Index ETF

3 Popular Index ETF from Horizons

Best Index ETFs for the Nasdaq 100

NameAUMFees
HXQ-U Horizons Nasdaq
100 Index  USD		                             2750.25
XQQ Ishares Nasdaq
100 Index		                         1,4760.35
QQC-F Invesco QQQ
Index		                             4060.32
ZQQ BMO Nasdaq 100
Hedged To CAD Index		                         1,4190.35
Best Canadian ETF Funds

Historical performance

Do index funds pay dividends?

Yes, they do. Index Exchange-Traded Funds (ETFs) are structured to mirror the performance of a specific market index, and their dividends are sourced from the companies within that index. If the companies included in the index distribute dividends, the ETFs will pass on those dividends to their investors.

Understanding Dividend Yields

The dividend yield of an ETF is a crucial metric for investors looking for income-generating opportunities. It represents the annual dividend income expressed as a percentage of the ETF’s current market price. Examining the dividend yield is essential for investors seeking a balance between capital appreciation and regular income from their investments.

How to choose the right index fund

Selecting the most suitable index ETF involves a comprehensive examination of various factors to align with your financial goals and risk tolerance. Here are key considerations:

Determine Your Investment Goals:

Clearly define your investment objectives, whether they are centered around long-term growth, income generation, or capital preservation. Your goals will guide your choice of an ETF that aligns with your financial aspirations.

Understand the Underlying Index:

Index ETFs track specific market indices, such as the S&P 500, Dow Jones Industrial Average, or NASDAQ Composite. Understanding the components and methodology of the underlying index is crucial for assessing risk and potential returns.

Evaluate Expense Ratios:

The expense ratio (ER) represents the total costs charged by an ETF for managing the fund. Opt for funds with lower expense ratios, as this translates to a higher return on your investment.

Consider Liquidity:

Liquidity refers to an ETF’s ability to be bought or sold in the market without significantly affecting its price. High liquidity, characterized by a high trading volume, ensures ease of transactions and minimizes potential trading costs.

Analyze Diversification:

A well-diversified ETF spreads its investments across a variety of assets, reducing the impact of poor performance from a single investment. Evaluate the fund’s holdings to ensure it aligns with your risk tolerance and investment strategy.

Assess Historical Performance:

While past performance does not guarantee future results, analyzing an ETF’s historical performance can provide insights into its behavior under various market conditions. Consider how the ETF has performed in different market cycles.

Seek Professional Advice:

If you find yourself uncertain about which ETF suits your needs, consider consulting a financial advisor. A professional can provide personalized guidance based on your financial situation, helping you make informed investment decisions.

In conclusion, investing in index funds offers a diversified and relatively low-cost approach to gaining exposure to various market segments. Whether you’re a seasoned investor or just starting, understanding the intricacies of index ETFs and their dividend-paying capabilities is vital for constructing a well-balanced and effective investment portfolio.

Disclaimer

The data on this website is for your information only. It does not constitute investment advice, or advice on tax or legal matters. Any information provided on this website does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in any of the investment funds or other financial instruments described on this website. Should you have any doubts about the meaning of the information provided herein, please contact your financial advisor or any other independent professional advisor.