Q: I know that you still like KXS, and you also like XIT. I manage my son’s TFSA, and he’s made a tidy profit in KXS, since it’s been held for quite a while. However, going forward, and since more recent charts indicate XIT's outperforformance, what would be your assessment of switching from KXS to XIT?
He doesn’t have enough room to buy CSU or SHOP, and I see that they’re the first two holdings in XIT, and would you agree that these two names are ‘better’ than KXS? As well, XIT holds a small amount of KXS.
Finally, he can buy and sell XIT with zero commission.
Your pertinent advice is, as always, important in our decision making.
He doesn’t have enough room to buy CSU or SHOP, and I see that they’re the first two holdings in XIT, and would you agree that these two names are ‘better’ than KXS? As well, XIT holds a small amount of KXS.
Finally, he can buy and sell XIT with zero commission.
Your pertinent advice is, as always, important in our decision making.
5i Research Answer:
It is always hard to compare an ETF with a single position, but for a younger investor we would be fine with XIT as representative of Canadian tech with no commission. We would look at SHOP and CSU more positively overall right now. CSU always and SHOP currently for higher growth potential. CSU exposure in XIT is 26%, SHOP is 24%, KXS is 2.6%. So, while it is an ETF, XIT might actually show higher volatility. But we would agree with the move.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XIT.