John HoodiShares Core S&P/TSX Capped Composite Index ETFXIC.TOTOP PICKJun 30, 2017

Basket of TSX holdings with the usual large-cap names including RY, TD, and SHOP. Performance has been strong, as the TSX has rebounded quite nicely. Overweight financials and energy. Yield is ~2%.

He prefers XEI or even VDY.

Canadian names across all sectors, and not overly heavy in financials or energy. TSX has been a global standout, and it's had a pullback. If you're underweight Canada, this one is reasonable. Yield is 2.1%.

Fellow travellers -- tend to go in the same direction most of the time. The TSX 60 (XIU) is about 80% of the weight of the index. 

So you have to ask yourself what you want to do about the other 20%? It's a combination of small- and mid-caps and junior resource stocks. You can get really good returns out of that piece, but it's also a lot more risk. A lot more volatile. 

How much return are you seeking? How much risk and volatility can you live with? What are you comfortable with? What are your priorities as an investor? Last year, resources did really well. But you'll have years where they just get hammered and the TSX 60 outperforms the composite.

Basket of high-dividend-paying stocks. Very heavy in Canadian banks, about 46%. Depending on your outlook for the banks, you need to decide if this holding makes sense for you. Choose this one if you're looking for yield. Yield is about 3.3%.

XIC will be much more diversified, as its focus is not juicy dividends. Dividend is lower. Banks make up only 21%. Yield is ~2.3%.

Each position is capped at 5% maximum. 220 stocks on the TSX, and so it's widely diversified. Recommending because of the upcoming change in Canadian government. Core position. MER is 0.06%.

A core position in his model portfolios for Canadian equities. Fee is 5-6 bps, almost impossible to get a more efficient exposure. Has done well on recent strength of real estate and materials. Good anchor point if you're starting your portfolio from scratch. Not needed if you already have a home bias on Canadian exposure.

Good way to get exposure to TSX broader market. Will track TSX index with low management fees. Good for long term investors. 

Benchmark index for Canada. You should have some core allocation to Canada. Question is do you trim or add based on market conditions? Rates and economic signals are leading his strategists to pull back from Canada and EMs in favour of US and international. Diversified, ultra-cheap at 5-6 bps. A great anchor in your portfolio.

Around a long time. Introduced as a capped product, because its predecessor was at market weight and 40% of that was Nortel. 

Core Canadian holding. He hasn't been buying lately, because he's overweight the US market.

Another dip-buying candidate in this ETF which tracks the TSX. If for whatever reason the entire market slides in a day or so, then use this to buy that dip. XIC‘s biggest holding is Royal Bank at 6%, followed by TD, CP, Enbridge, CNR, Shopify, CNQ and the other big banks. Read 3 All Canadian for our full analysis.

Limits size of each name in index.
Provides exposure to largest companies in Canada.
Good for balanced portfolio. 
Believes lots of reasons to be bullish on Canada.