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iShares S&P U.S. Mid-Cap Index ETF (XMC)
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iShares S&P U.S. Small-Cap Index ETF (CAD-Hedged) (XSMH)
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TD Q U.S. Small-Mid-Cap Equity ETF (TQSM)
Q: I am looking for an etf that addresses small-mid cap US stocks in a cash account, but can be bought in $CDN. I stumbled across TQSM which is a little small for my liking and has a higher MER than I prefer, but otherwise seems to cover the field I am interested in.
What is your opinion of TQSM and do you have other suggestions for this area?
What is your opinion of TQSM and do you have other suggestions for this area?
5i Research Answer:
The space in Canada is quite thin. For specific US small/mid cap exposure with a Canadian listing, we think TQSM fits the bill well. At $140M in assets, we would consider it big enough for investing. Fees at 0.45% are higher than in the US. We think it is fine for the purposes stated. XMC is larger, but fees are 0.61%. XSMH is only $17M, but fees are 0.22%. It is hedged to the C$. Overall, TQSM still looks best to us.