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BMO Equal Weight Oil & Gas Index ETF (ZEO)
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Horizons S&P/TSX Capped Energy Index ETF (HXE)
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iShares S&P/TSX Capped Energy Index ETF (XEG)
Q: Wanting to add Cdn. oil & gas producers to my portfolio. I would like to add 2 ETFs, one to go into my TFSA and the other into the taxable (cash) account. What I would like some thoughts/suggestions on, are possible alternatives. Obviously, one of my major concerns is tax efficiency. Thanks to other subscribers for their questions and, of course, to the 5i Team. Bill
5i Research Answer:
On the Canadian side and for tax efficiency purposes options are more limited but we would suggest XEG and ZEO. XEG is iShares S&P/TSX Capped Energy Index ETF which has net assets of $1.6B and an MER of 0.60%. ZEO is the BMO Equal Weight Oil & Gas Index ETF which has net assets of $197.78M and an MER of 0.61%. We think these are the top two ETFs that are TSX listed which provide oil and gas sector exposure. HXE is a smaller fund, but as a total return fund has no distributions and thus is the most tax-efficient here.