Q: If a person was looking at income with some growth, long term would you prefer FIE or another financial ETF or one or more banks. If banks, which are your top choices.
5i Research Answer:
We do not see a lot wrong with FIE, but fees are high at 0.91%. It does own 27 securities, and has good diversity. But, if investors are willing, we think a combination of TD, RY, BNS and SLF would provide decent financial exposure and enough diversification so one could avoid these fees. With a group of stocks, one can also tax plan a bit better (selling decliners for tax losses) easier than by owning an ETF.