skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. CHPS: Hello 5i friends - Thought this might be a good holding for using Canadian dollars to invest in semi's valued in US dollars as a portfolio currency diversifier. [Horizons Global Semiconductor Index ETF]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello 5i friends - Thought this might be a good holding for using Canadian dollars to invest in semi's valued in US dollars as a portfolio currency diversifier. The subscription is small at this time but this is a new ETF. First, do you like the holdings and their weightings, would you expect this ETF to attract investment over the next year or so in order to satisfy your standards for a sufficient level of investment, do you have any comment regarding the MER and finally other than the low current investment level do you have any cautions to offer. Many thanks for your input. Ken

Asked by Ken on August 23, 2021
5i Research Answer:

While CHPS trades in Canada, it is not hedged, so there is still currency impact. At $5M in assets we cannot endorse it yet, and are not convinced it is going to grow that much. The fee is 0.45% and we would expect MER to settle in the 0.65% range. The fee is competitive to others, but other than the Canadian listing this ETF doesn't offer that much. NVDA is currently 12% of the portfolio, and overall we are comfortable with the holdings. We don't have any other 'cautions' other than the inherent volatility of the sector.