Opinions
Paul Harris, CFA
iShares S&P/TSX 60 Index ETF
XIU-T
BUY ON WEAKNESS
Oct 18, 2023
$29.650
Stock price when the opinion was issued
investment companies
funds
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
BUY
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.
investment companies
funds
BUY
XIU vs. XIC Correlations and holdings are quite similar. XIC is more diversified, with about 240 holdings. XIC has a 6 bps MER, while XIU is 18 bps. Performance has been very similar. XIU has a bigger weighting in banks, about 28%. XIC has about 23% in banks. Not much diversification if you own both. Also look at XEI, a high dividend ETF, geared towards a higher yield.
investment companies
funds
BUY
Allan Tong’s Discover Picks XIU stock charges only a 0.18% MER but pays a 3.02% dividend yield. Averaging 3,000,000 shares a day, XIU is fairly liquid, over six times more than, say, XIC-T. The biggest holding here is Shopify which has been quietly making a comeback, followed by Royal and TD, the country’s biggest banks. Enbridge, CN, BAM and the other banks are also major holdings and well-regarded by investors. XIU is a cautious trade, one that an investor can enter and exit at a profit. Read 3 Defensive Stocks to Catch the Rebound for our full analysis.
investment companies
funds
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.