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iShares S&P/TSX Capped Consumer Staples Index ETF (XST)
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iShares S&P/TSX Capped Information Technology Index ETF (XIT)
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Evolve Global Healthcare Enhanced Yield Fund (LIFE)
Q: I am pretty close to full positions on LIFE, XIT and XST. Also, I am sitting on <5% cash, being basically fully invested. Over the next few months I plan to top up these 3 ETFs.
In what order would you add to each of these 3, based on their current valuations, compared to their historic valuations as well as their potential?
My thoughts were LIFE, then XST, then XIT (although I suspect your order would be XIT-LIFE-XST). Please include a brief "why".
Thanks for your help...Steve
In what order would you add to each of these 3, based on their current valuations, compared to their historic valuations as well as their potential?
My thoughts were LIFE, then XST, then XIT (although I suspect your order would be XIT-LIFE-XST). Please include a brief "why".
Thanks for your help...Steve
5i Research Answer:
This decision comes down to a sector call. We would prefer an order or XIT, LIFE, XST if one is growth-focused. The consumer is still struggling somewhat with inflation, but tech earnings have been very solid overall. The average P/E on LIFE's holdings is actually 58X, not far off XIT (69X) which is heavily skewed higher because of its SHOP exposure. If rates fall, tech could also outpeform.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XIT.