Stan WongiShares S&P/TSX 60 Index ETFXIU.TOHOLDJun 12, 2023

Great long-term holding and a way to defer taxable gains.

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.

XIU is just the Canadian market. Lots of energy, lots of banking, some industrials and materials. Canadian market's outperforming the US market and has been for 18 months. Who would have guessed at the beginning of the year? Once that starts, it usually goes on to behave that way for 7-9 years at a time. 

Important big picture:  international markets, which include Canada, are in a great spot.

Great way to get exposure to Canadian equities. Has performed well the past 5 years. Would recommend buying as a way to get exposure to Canadian economy. 

Oldest ETF in the world (launched in the 1990s). Cheaper ETF's but overall, a great product. Over the long term, good product. 

Excellent growth option. Lots of tech, consumer and healthcare stocks. Would recommend buying for the long term. 

Banks have down poorly this which has limited the TSX, though oil has gone up. You need the financials to do well for XIU to do well. But in the long run, this will outperform in coming years.

It holds a basket of large cap Canadian names and he likes it for the energy and banks holdings. The TSX 60 is not as far ahead as its counterparts in the U.S.

XIU has a slightly higher MER. HXT does not distribute the income but is capitalized into the portfolio holdings. It makes it a capital gain than dividend income. The redemption cost is also a factor. Would prefer HXT all things considered.

An ETF to buy? There are so many ETFs, so it depends what you're looking for. XIU offers growth and income for retirees. This is a core holding for any investors. There's also a BMO utilities ETF offering a yield and upside. Also, a Canadian bank ETF from any vendor will give you income and growth, like ZWB-T. An ETF reduces volatility vs. owning individual stocks.

HXT-T vs. XIU-T. They have basically identical holding but one pays a dividend so has different tax treatment. He is indifferent. In a TFSA, there is no reason to not to use the XIU-T.