Q: Hello,
I will be switching to an indexing strategy in the near future and have a few ETFs that I would like your comparisons/advice/opinions. All ETFs will be held in TFSAs or RRSPs over a long term.

1)S&P/TSX: XIU, XIC, HXT*

2)S&P 500: ZSP, HXS*

3)Emerging Markets: ZEM, XEC*

*denotes commission free trades.

4) In registered accounts, is there a long term advantage to having capital gains vs dividends distributions as is the case for HXT and HXS? I would reinvest any potential dividends in other ETFs.

Thank you.

Q: I am looking for an index fund that follows the Canadian market, and I have been using XIU for some time. I have funds allocated to each of my two children in the same account, and I want to buy analogous, but unique, index funds to make the bookkeeping simpler. I have come across HXT (claims to follow TSX60) and VCE (claims to follow FTSE Canada index, of which I am unfamiliar), both of which seem to be cut from similar cloth. Can you provide insight on the following:

- Can I consider these three ETFs interchangeable, or are there profound differences between them?

- Do they have similar expense ratios, or is there one that is an outlier (being either more expensive or cost-efficient)?

- Is there another Canadian index ETF that you would recommend above these?

I have separate US S&P ETFs and I feel I have enough selection options, which is why my question is limited to ETFs which follow the Canadian TSX60 index. As always, I appreciate any insight you may have to offer, and I look forward to your response.

Q: Hi, Happy new year!!

When looking at the long term rates of return of Emerging markets, developed INTL markets, Canadian and US stocks, the US has outperformed by a mile. I hold mostly stocks that are Cdn and US and I have global international and developed exposure through the mentioned ETF's, which only account for around 6% of my total portfolio. My questions are:

1. What is the simplest way to break down portfolio exposure without getting too overly complicated and detailed? Currently I break it down by where they trade. But for example, I hold stocks such as BAM, SLF, GOOG, JPM, V which are more global. How would I go about classifying some of these stocks? Would I allocate some % of these towards international exposure based on the company revenue breakdown, etc? any other metrics? Any good sites that easily summarize this info. or do I need to go looking through the companies financial statements?

2. Is there any mean reversion long term between CDN, US, INTL, and EE markets? So since INTL and EE has underperformed so much lately, is it time to rebalance equities from US to CDN/INTL/EE? Or for a long term growth investor, is the US still the best place to invest for growth whereas INTL/EE look cheap and have better value, although slower growth? Thoughts?