Investing in Canadian Equity ETFs | VCN, XIC
HTML-код
- Опубликовано: 10 июл 2024
- In this video, Justin compares Vanguard's and iShares' broad Canadian stock market ETFs, VCN and XIC.
The below topics are explained in this Canadian equity ETF tutorial:
00:00 Intro
01:52 How XIC’s 10% company capping feature works
02:53 How to calculate each company’s weight in a market capitalization-weighted index
04:17 Which ETF is more diversified: VCN or XIC?
05:07 Historical performance of VCN’s and XIC’s underlying indexes
05:28 Worst historical losses for VCN and XIC
05:55 Which ETF should you invest in: VCN or XIC?
06:21 Sector concentration in the Canadian vs. global stock market
Follow Justin Bender on
- Twitter: / justin_bender
- Blog: www.canadianportfoliomanagerb...
Visit PWL Capital: www.pwlcapital.com/teams/bend...
100% of RUclips revenues received by the Canadian Portfolio Manager channel have been donated to SickKids Foundation.
If this video has helped save you a few dollars on fees or taxes, please consider donating a portion of your savings to SickKids Foundation: www.sickkidsfoundation.com/
Great to see you back, Justin. Anticipating the rest of this series greatly!
@D C - Good to be back. I had to take some time off after getting laser surgery on my eyes, so that set me back a bit. But now I'm 100% again :)
So glad to see you back.
@Nathan Schmaltz - Good to be back :)
Excellent Canadian investing content Justin. Always glad to see a new video pop up from your channel. 👍
@Brian - Thanks for dropping by the channel! I have ~13 videos with the animators now, so there should be a consistent stream of videos popping up every 2 weeks or so.
Justin, excellent content as always. Really appreciate what you do here and always enjoy the valuable insight.
@R.A. - I really appreciate your feedback - thanks for watching! :)
Thanks Justin! Informative as always.
@CARL BERNARD - You're very welcome - thanks for dropping by :)
Just found your channel. Excellent video. Answered all my questions regarding Canadian equity ETF choices. Love investing in Canadian companies but am worried about being overweight with Oil and Gas.
Looking forward to your analysis of VEQT or other global stock portfolio.
@John Page - FYI - I'm planning to release an "All-Equity ETFs" video at the tail-end of the equity portion of this series :)
Keep in mind that we've already started to review the all-equity ETFs, as we discuss their underlying equity ETF holdings (like VCN and XIC).
Just found your channel. loved the really high quality video! Looking forward to future content!
Side note, might be a cool idea to cover HXT. Its more efficient than VCN and XIC in an unregistered account due to how it opts for automatic DRIP instead of a dividend, which results in tax savings.
@Final Spartan - I'm glad you found the channel! I might look at creating a video for HXT (and the other tax-efficient Horizons ETFs at some point in the future). Please note the ETFs tax-efficiency comes from the corporate structure (an "automatic DRIP" instead of a cash dividend does not provide any tax-efficiency).
Excellent video, as always. Your videos along with your Ottawa PWL Capital colleagues, Cameron Passmore/Ben Felix's videos are so fantastic in their educational density! Just one possible small error that I noticed (maybe someone else noticed too)...in the part where you explain Market Cap-Weighting, starting at 3:23, the "Total 2,562.2%" may be confusing...I believe you meant to have it say "$2,562.2" (CAD Billions). Otherwise, I always enjoy the education and content that you deliver. Thank you so much!
@Mark - Whoops - good catch! That figure should definitely be a dollar figure (not percentage). Unfortunately, once we post a video, it can't be taken down (unless we want to lose all the comments and views).
Good video, ill stick with zgro and vgro for my growth portfolio, my second part is in dividend/growth etf and covered call one.
Great video, thanks!
@Olivier Lapointe - Thanks for tuning in! :)
Really enjoy your presentation - clear, simple, easy to understand. Would you consider putting forward a sample portfolio of ETFs for people who are 30-59 or 60 and older?
@Sam Van - I've included a link to a risk profile questionnaire and various model ETF portfolios on my blog: www.canadianportfoliomanagerblog.com/model-etf-portfolios/
Every investor has a different situation, so there's no asset mix that's right for everyone, regardless of their age.
VCE outperformed both of these ETF, and has higher yield too for people who are seeking passive income. And has low MER as well at 0.06 as far as I remember.
Hiii ! thanks for these videos, very helpful ! I have one question, how can I figure out the % of stocks and bonds portfolio composition of ETFS? I ve been looking and if its not clearly indicated in the providers websites, Its hard for me to find, thanks !!
Thank you for releasing this video, I always wondered what the differences were between VCN and XIC.
Wondering if you'd be able to talk more about diversification in the auto-asset allocation funds more based on sectors/industries. From what I researched even VEQT/XEQT and those family of ETFs may be tilted too much to the financial sector given they allocate 30%/25% to the Canadian market, so couldn't that be a concern?
@Voltampt - I'm glad you found the video helpful. In terms of sector diversification of asset allocation ETFs (with ~30% allocated to Canadian equities), the financial sector weighting would only increase from about 15% (global market cap-weighted portfolio) to around 20% (asset allocation ETF), so the AA ETFs are still more diversified than the 33% financial sector weighting in the Canadian stock market).
Welcome back. Thank you for all your contributions. Would it be possible for you to cover XSTH, and perhaps compare it to GICs?
@Koray Tugay - You're very welcome! I don't have any plans to cover XSTH, but that could change in the future.
Great video, with rising interest rates do you recommend paying off the mortgage when it's up for renewal
@Vic Fontaine - I've never met someone who regretted paying off their mortgage early ;)
Thank you for great videos! I would like to ask for your input about Canadian Div ETFs... VDY, XDIV, XEI etc..
EA Avi - They're less diversified than broad markets ETFs, so I prefer the latter.
Great video, is there a m1 finance similar equivalent in Canada with automatic portfolio balancing
@SIDE HUSTLE CAPITAL - The best option would be to purchase one of the Vanguard or iShares Asset Allocation ETFs (which rebalance for you):
Asset Allocation ETFs: Vanguard vs. iShares: ruclips.net/video/jehooxCWU1k/видео.html
Hi Justin, Welcome back.
Question - should i consider swapping XIU for either XIC or VCN. i believe i can save on MER fee and the yield to me seems higher even in the down market for VCN and XIC. Thank you.
@Niran Abraham - If there are no tax consequences for switching XIU to either XIC or VCN, it seems like an appropriate strategy (as XIC/VCN are both cheaper and more diversified than XIU).
@@JustinBenderCPM i hold the XIU in my TFSA i guess i wont have to pay Tax man. i took a look at the fund facts (XIU) plus your video has conviced me that the broadly diversified XIC will give me better long term returns.
Justin, can you please record video about structured notes?
@_boris_ - I don't have any videos planned in the near future discussing structured notes, but I can put it on the list.
Maybe consider doing a comparison between XEI & VDY for those seeking dividends to live?
@HamiltonRb - I may post a dividend ETF comparison at some point, but I think most investors should stick with broad/total market equity ETFs (so I want to hammer that point home in this next series of videos).
@@JustinBenderCPM I can't wait to see the full series.
I have purposely over-weighted the North American holdings in XEQT using 2 dividend ETFs in conjunction with it. I know you're going to explain why that was a poor decision, but I plan to transition this particular portfolio over to more and more dividend focused as I approach retirement.
I'm delighted to see fresh content from you. Cheers.
I hold VDY and XEI, I'm thinking of adding a small allocation of XIC for the total return (plus a generous dividend) I hold other indexes such as
VFV and HXQ, my question is do you think its pointless to add XIC if i already have VDY/XEI?
@zachdallalibera1156 - I don't think it's pointless to add XIC if you already hold VDY and XEI (because XIC is more diversified). But once you own XIC, it's rather pointless to hold VDY and XEI too (because their holdings are already included in XIC).
@@JustinBenderCPM thank you for the reply. I’ll probsbly just stick to holding VDY and XEI for monthly dividends and they are also growth ETFs as well, might be nice to get a DRIP going.
👍
Why the snub of BMO? ZCN and XIC are on par.
@tenorref - No issues with BMO's ZCN - it's also a great choice (but the video length would've been longer).
I could've also thrown in Mackenzie's QCN, Franklin Templeton's FLCD, TD's TTP, CIBC's CCEI...you get the point ;)
@@JustinBenderCPM Thanks for your reply, Justin! I will take this under consideration in the other videos and chill. 😉 I do appreciate your content as well as that of Ben and Cameron. Keep up the good work educating us. 🇨🇦💰💰
Aww no SubZero?! Looking forward to to the rest of the series. Thanks!