Your recent answer on FCIV prompts me to ask the following. How would you compare it to ZDI.
Investment yield compares favourably for ZDI but 3 yr ttl return favors FCIV with an asset blend that is quite different. At first I was going to shift from ZDI to FCIV.
However with the heavier trend toward Real Estate (1.86% vs 9.32%) and Industrials (11.26% vs 23.71%) for FCIV is now prompting me to go 50/50 on these etfs for diversification. Any suggestions.
FCIV has an AUM of $174M, an MER of 0.51%,a yield of 3.7%, and 116 holdings. ZDI has an AUM of $441M, an MER of 0.44%, a yield of 4.4%, and 101 holdings. Since FCIV's inception in 2020, it has slightly outperformed ZDI, growing at an 11% CAGR vs. ZDI at a 9.7% CAGR.
We think the industrials space can outperform in the coming years as the economy expands, and real estate can perform well if interest rates stagnate or fall. We like the relative outperformance of FCIV, however, it does have less liquidity and a higher MER. For a more conservative approach, but with the upside of a lower cost and higher liquidity, we would prefer ZDI here. Overall, we would be comfortable with either ETF as they have performed similarly and we feel the more cyclical sectors can show outperformance in the coming years.