Investment Q&A

The TSX is up 4% this year, vs 25% for Nasdaq as represented by QQQ and 17.6% as represented by VFV. The TSX is still heavily weighted towards financials, energy and materials  (58.7% combined weighting). These sectors can provide some inflation protection, but the TSX is not likely to perform well if financials are weak, as they were this year. The TSX financial weight is 30.3% vs 12.8% for the TSX. We would not neccesarily change anything. We think some Canadian exposure is appropriate for Canadian investors. XIC is a 'capped' index so weightings are lower. This is exemplified with its 7% gain YTD, 3 points better than the overall index. We would not consider 7% as 'bad' in a year such as we've had, and certainly 20% is very good. We would take a close look at objectives here. If one wants to go to zero percent Canada that is an option of course, but not one we would consider lightly.