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.
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.
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.
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.
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.
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).
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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.