Stockchase Opinions

John DeGoey iShares MSCI EAFE (CAD-Hedged) ETF XIN-T PAST TOP PICK Nov 08, 2012

(Top Pick Nov 9/11, Up 10.90%) Since last year Vanguard had come out with a product that is very good, but this is still a very, very good product.

$16.670

Stock price when the opinion was issued

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COMMENT

He likes this and it is as good as any other. There are 3 or 4 that are relatively homogenous, and usually when looking at this, you are looking at this company, Bank of Montréal and Vanguard. These are the 3 leaders in low cost beta. This ETF is the largest and oldest, and he has used this a fair bit in the past. Ridiculously cheap and a very good product.

BUY

We had a breakout. The US market did well, but so did many other markets around the world. He is in the US equivalent of this ETF in his fund. He is generally neutral in currencies. He is starting to move into long Canadian dollar vs. US dollar soon. The Canadian dollar does well in April.

COMMENT

Great way to play an international market. It gives you exposure to the international market, and they hedge the currency out. Sometimes you can enhance your returns by not being hedged on the foreign currency, which has been the case as the Cdn$ has dropped off. However, going forward as an international investor, with the weak Cdn$ as it is, you want to consider ETF’s like this and iShares S&P 500 (CAD-Hedged) ETF (XSP-T) to hedge your foreign currency exposure.

PAST TOP PICK

(Top Pick May 1/14, Up 20.85%) People are reluctant to go in because of Greece and so on, but it has done quite well.

COMMENT

You want to be globally diversified. Compare to XIC-T over 3 years. It has done really well. Diversifying lowers your volatility.

DON'T BUY

International developed markets outside of North America. It has a higher dividend yield than the US markets. It is currency hedged, which he likes. But we have some serious growth challenges in Europe and he does not think it is over yet. It is hard to be wildly positive on it. It is too early.

COMMENT
How do you select ETFs? He likes low MERs in general when looking for ETFs -- usually under 10 bps. Don't buy the "smart Beta" ETFs with higher MERs. Look at iShares, BMO and Vanguard websites for more specific information. He thinks many of the higher MER ETFs might close down as there are simply too many doing the same thing at higher costs. He thinks XIN-T is a good candidate for the European markets as an example.
DON'T BUY

Europe, Australia, and Far East so has been affected by Brexit. A good ETF but hasn't performed well. Could buy ZWE, which is more European based. Would like to see more U.S. exposure.

BUY
If you're looking at a global ETF, remember that 60% of it's going to be US. For an Asian ETF, 52% is going to be Japan. People want diversification. To get decent global exposure, you're going to need to pick up a couple of ETFs, as just one can't do it all. One is XIN, which is mainly France, Germany, UK, and very little Far East.
BUY
Investing in India.

He uses ETFs. Good one-stop way to get at the India 30, which has done well over the last couple of years. Over the next 30 years, India will be where China was. Very exciting area, investors should own.