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

The rebound bull did not make a new high. We are now fighting to make a new all time high. It will go on for a while. He would not invest broad based but in specific sectors.

Should you hold other ETFs directly that are held within this ETF? You could sell and then overweight ZEB-T to overweight the banks, for example. XIU-T is the passive investment. Sector specific ETFs can be used instead to overweight certain sectors.

iShares TSX 60 (XIU-T) or iShares S&P 500 Cdn Hedged (XSP-t) because of energy? We have had far more exposure in Canada to oil prices than the US. This has led to a decline in the Cdn$, but at the same time we have to look at the opportunity that creates for Canadian exporters, and there could be a lot of business coming out of this as a result. He has not been selling these, but if you are inclined to do so, you could lighten up on them and buy the XSP, especially if you don’t have American exposure.

(A Top Pick April 25/13. Up 21.32%.) This is a core holding for him.

For a TFSA account? This is the largest ETF in Canada by a large margin and it’s cheap. Most large-cap stocks get dividends. He wouldn’t worry much about dividends in an ETF. The dividend tax credit is more of an opportunity cost that you forgo. Any dividends that you earn in a TFSA are tax-free. If you had them in a taxable account you get tax preferred income but in a TFSA you don’t pay any tax at all.

VCN gives you more diversification and mid and small cap exposure as an alternative.

Does seasonality apply to an index such as TSX 60? Seasonality in Canadian markets is very pronounced. The best period to own the TSX Composite is from October 28th each year, right through until May 5^th each year. Chart is showing a strong upper trend and we are getting very close to breaking through to new highs. The TSX Composite is going to be the 1^st major equity index in the world to move to a new high and it could do this in the next couple of days. Historically, the best time to own the Canadian market relative to the US market is from the middle of December right through until the middle of March. That is the middle of RRSP contribution time, which is one of the reasons Canadian markets tend to outperform US markets at that time.

Still likes this. There are also alternatives to this. This is pretty much a core holding for him. He also likes it because it is optional.

Can you take a 20% position? He can do 10-15%. Seasonally you can buy it in the fall and sell in the spring. Well diversified ETF but don’t over trade yourself.

60 largest companies in Canada. Thinks the Canadian markets has underperformed and have not set record highs the way the US has. If the US market and the US economy are as good as the market seems to think it is going to be, then the Canadian market will participate and will do so in a leveraged fashion and we will outperform the US in the next couple of years.

Loves it, but you get only 60 stocks, a large cap, dividend bias. He prefers a small cap bias to get more growth.

He has been holding off a little bit. He wants to see where this market is going. 29% is banks.

We are right at the 52 week high. 13000 is a round number for the TSX and is 61.8% retracement and so is a resistance area. The TSX may or may not reach this target in the next couple of months. Cut your position after another 1-2% up.

(A Top Pick Dec 22/11. Up 10.55%.) He does have concerns about the Canadian market. We have to see the Keystone thing go through.

If you are going to sit back and let the market dictate your returns, you might want to consider HXT because it is that much cheaper. .05% management fee. He would rather control his weightings.