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S&P 500 (SPX)
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INVESCO QQQ Trust (QQQ $644.33)
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Vanguard All-Equity ETF Portfolio (VEQT $56.81)
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iShares Core Equity ETF Portfolio (XEQT $42.03)
Q: I am looking to simply my portfolio by transitioning part of my portfolio to broad market etf.
I have a few concerns with the often mentioned Xeqt and veqt.
With Canadian assets around 25% of holdings, is the Canadian market over represented?
Secondly, if I were to split my ETF holdings between a VEQT (or Xeqt) and a second, growthier ETF, which ETF would you recommend for some added torque?
Would the default choice be a QQQ. I ask because I am worried about the long term prospects for SAAS.
Your advice please.
Thank you
I have a few concerns with the often mentioned Xeqt and veqt.
With Canadian assets around 25% of holdings, is the Canadian market over represented?
Secondly, if I were to split my ETF holdings between a VEQT (or Xeqt) and a second, growthier ETF, which ETF would you recommend for some added torque?
Would the default choice be a QQQ. I ask because I am worried about the long term prospects for SAAS.
Your advice please.
Thank you
5i Research Answer:
Technically, at 25%, yes Canada would be over represented but for a Candian, there are also reasons why this should be the case such as taxes, dividends, and FX implications. So, some home bias is warranted and we think the 25% to 30% range is reasonable.
On a growth ETF, we do think QQQ makes sense. If worried about the tech exposure, something like SPX is a bit better diversified but still provides a tilt to equities in general.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in QQQ.