Stockchase Opinions

Daniel Straus BMO S&P/TSX Capped Composite Index ETF. ZCN-T TOP PICK Jun 29, 2017

XIC-T is also the same index, but these are the goto names for low cost in the Canadian market. Very low MER. You can supplement this with factor strategies.

$20.500

Stock price when the opinion was issued

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DON'T BUY

XIC-T vs. ZCN-T. He does not know the difference between them. The Canadian market is the least diversified in the world. He does not want to own anything that tracks the TSX unless we are in boom time in the banks or commodities. He does not invest in ETFs.

PAST TOP PICK

(A Top Pick, Jun 29/17, Up 7%) It is a core allocation for him in the Canadian potion of a portfolio. Have more than 5-20% Canadian exposure.

BUY
One of five ways to get pure, low-cost, passive Canadian ETFs like VCN. Canada's markets are mostly financials and energy which can be volatile. But these ETFs are perfectly fine. Charges only 6 basis points.
BUY
Like any of the others broad TSX composite index. A good core holding. Cheap.
BUY
This is close to the TSX 60 ETFs, like XIU. This is an index play on Canada. Buy and hold it. A great core holding.
WATCH
Broad exposure to Canadian ETFs. It is close to all time highs and so is not attractive. This is not the time to buy it. It would be more attractive at the lows of last year.
BUY
You get the large-cap TSX names. It bottomed at Christmas, rose, had a bad May and rising this month. This is a single-take solution for Canadian stocks. A caveat: these are large-caps, not small, but this should do well.
COMMENT

When you buy an ETF from a BMO or Blackrock, it will be well-capitalized. Don't worry about bid/ask spreads or liquidity. ZCN is the Canadian benchmark. Don't worry about capitalization. ZCN is a plain vanilla product. He prefers an inverse ETF (see top picks).