iShares S&P/TSX 60 Index ETF (XIU.TO)

This will give you passive exposure to the 60 largest companies in Canada. So the ETF will mirror whatever that index does. It pays a dividend of about 3%. Absent active management , it is a good way to get passive exposure to Canadian large caps.

This will give you passive exposure to the 60 largest companies in Canada. So the ETF will mirror whatever that index does. It pays a dividend of about 3%. Absent active management , it is a good way to get passive exposure to Canadian large caps.

A good time for an entry position? Another core holding, it’s heavily weighted in the banks, it’s the largest 60 companies in the TSX. It’s something everyone should own in their portfolio. Also worth taking a look at ZIN-T. For some of the smaller investors, you might as well go to your bank and buy their Index Funds. MER are between 0.75 and .90%, no commission. It’s a great way to get into the market for smaller investors and keep the fees low. Make sure you buy into their Canadian Index Fund or their U.S Index Fund, and not into their higher fee mutual funds.

The original and the best. The world’s first launched ETF. It is pretty boring. He likes to see diversification. But this one is a large cap play on Canada. It is very, very liquid.

The premiums for options seem very, very thin. Because of the diversity that protects you? Yes. This one is just the capped TSX 60. It was designed when Nortel was a big part of the index, so they capped the exposure to one stock. This is really representative of Canada’s economy, very much dependent on raw materials and energy, and is about 30% of this one. We don’t really have that issue today. You are looking at a diversified ETF that isn’t particularly volatile. You have optimal diversification, which is why this one often underperforms the S&P 500.

XIU-T vs. individual shares. The TSX index is mostly financial and resources. He does not believe you should buy this weighting as you will be short on everything except financial and resources.

There are banks, insurance companies, a lot of oil and gas, and materials in this. It is tough when you have markets rising like this to jump in, but the fact that a lot of people are still scared, means that it is not a bad time.

The largest ETF in Canada. Every time it comes back to the support level, you want to be buying this. Look for retracements in order to start a new position. Risk/reward ratio is a little skewed right now. You want to Buy low and Sell high, so do you really want to be buying at the present levels? The longer-term perspective looks great.

His bias is for more diversification, foreign markets as opposed to Canadian markets. This is the largest ETF in Canada. It will have lots of dividend payers, so it will be fairly stable. Reasonably cheap. This is fine.

TSX-60. He was pretty sure at the beginning of the year that Canada would outperform because of oil bouncing back. He does not see a lot of upside because the market is valuing oil stocks now with oil at $60. It is not a good time to step in. He could still be wrong going forward.

This is the TSX 60 with a yield of 3% or so. It is relatively cheap. But will you be able to handle the ride with all the current volatility? If so, then he could recommend it.

He would like to see what happens over the next couple of days. The market was down today, but it wasn’t getting clobbered. Overnight markets were not so bad. There is no harm in getting in a little bit late.

This is heavily weighted by the banks, so if you believe we have a bull market and the banks are going to lead the way, it should help this. The only thing that is going to hold back is the materials and energy sector. There was a rally in energy, and it has now pulled back a little. If we get this new Bull next year, it is going to be a global expansion bull. He thinks this ETF could be alright. Dividend yield of 3%.

An ETF mix that would suit a self-directed RESP? He would have (CPD-T) iShares S&P/TSX Preferred iUnits as a fixed income component, (XIU-T) S&P/TSX 60 and TSX 60 as a Canadian component, and SPDR S&P 500 (SPY-) as the US component, and would split this as you have an RESP. Rebalance once a year.

What concerns him about the TSX60 is the quality of the constituents. If you want something low volatility with a growing dividend, you are better to buy iUnits S&P Financial (XFN-T), the financial services ETF. It has a good yield on it and the banks continually raise their dividends.