iShares S&P 500 Index ETF (XSP.TO)

Buy a hedged ETF when Canadian dollar is lower? Currency decisions are an active part of their process, they are active on currency decisions, and then they use passive ETFs. Not hedged on anything right now. Canadian dollar is stuck in a range between 0.75 and 0.77 cents. Doesn’t think Canada will raise interest rates as fast as US, which means the Canadian dollar will come under pressure. If you are buying S&P now, you are buying it for a long-term portfolio with 2-5 years horizon, because in the near term you are probably not going to get much out of it. XSP is currency hedged. XUS is not currency hedged, and it’s his ETF of choice in the US. XSP should be in a portfolio and replace big US stocks. His opinion is to don’t edge it. XUS definitively affordable at 0.10% MER. You have to really watch the underlying costs when putting an ETF in your portfolio.

VSP-T vs XSP-T vs ZSP-T. These all have exposure to the US Large Cap market, yet have different returns thus far this year. You have to be careful on these – some are currency hedged and others are not.

In his 41 years experience, he’s never come across anyone who is any good at picking currencies consistently. Buying something hedged will sometimes work for you, but sometimes won’t, and you don’t really know ahead of time. You pay for the hedge as it is built into the cost of running that portfolio. He doesn’t believe in hedging.

$40,000 in a TFSA to invest in US and international equities giving protection of the principal amount? When looking at US and International ETF’s, he is not a huge fan of emerging markets. If he were doing it, he would look at VEE-T emerging-market, ZWE on Europe and the XSP on the S&P 500.

(Top Pick Jan 19/16, Up 30%) It is a core holding. He continues to hold it. He is generally positive on the US. He bought it and stayed with it.

iShares S&P 500 (CAD-Hedged) (XSP-T) or iShares Russell 2000 (CAD-Hedged) (XSU-T)? He frequently talks about factor investing, and one of the factors that is very real and very tangible is the small caps outperforming large caps over time. As a result, he expects XSU will give slightly higher returns, although it is a bit more volatile.

(Top Pick May 8/15, Up 0.37%) It is flat. He has this ETF in every portfolio. This is a core holding. Great American companies. He is bullish on the US. He is buying aggressively now.