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Had to watch endless videos and not understand the core point, but now I got it when I found your channel! Thank you so much for such amazing explanations
You have made the beat videos. Simplifying the investing and giving very practical tools. I always thought what is the difference between this and that ETF or should I buy a US ETF because the fee is lower. Also, the diversification is one of my major concern as I have so many different mutual funds, but they all seem to be impacted by the same large companies and have a very similar industry exposure. You have simple and practical answers to all these questions. Thank you so much!! How many ETFs, one should hold? How many mutual funds make sense. I am thinking of simplifying my portfolio.
@Fassel Hussain - Thanks! If you're really looking to simplify your portfolio, you can now purchase a single asset allocation ETF that holds all of the main equity and bond asset classes: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-jehooxCWU1k.html
What are your thoughts on investing in taxable accounts? Do you like horizons HXS or HULC? HXS has higher fees due to the swap, ie. mer 0.1 + swap 0.3 = 0.4%, however you get to recoup the withholding tax on dividends. HULC holds the investments directly and does not charge a swap, mer 0.09% but does not recover the withholding tax on dividends. Do you have a preference?
Great and informative video! I'm curious how, or why, one might choose VUN over VTI (or vice versa) if they closely track the same results? Is it simply a matter of preference for a particular exchange to trade upon?
@Dom R - As discussed in the video, micro cap stocks make up less than 3% of VUN, so they are not expected to have much impact on the fund's performance. VUN also holds thousands of mid cap and small cap stocks, so it is more diversified than VFV.
I feel like the personal finance/DIY investing community should take over the use of HODL lol. Unlike silly crypto, it actually make sense to HODL index investments during downturns.
5 year return for XUU vs ITOT is 64.64% vs 57.64%. Also, VUN vs VTI is 65.57% vs 58.37%. What is the reason for the tracking divergence if the hold they same assets?
I switched from individual stocks to etf's during pandemic. Since I am retired and don't need " the excitement" of 40% drops in the markets, I bought ZLB & ZLU which are low volatility etf's in Canada & the States, and have performed well so far. Your thoughts on either or both?
@HamiltonRb - As you know, I prefer low-cost, broad or total market ETFs. Their performance (relative to active strategies, like low volatility ETFs) is incredibly hard to beat over the long-term.
@@JustinBenderCPM I'm not that conservative to buy a lot of GIC's at todays rate, I just don't want the extremes. As a matter of fact, if you compare ZLU with the S&P 500 ( VFV) over the last 5 years, they end up in the same place without the volatility, same as if you compare ZLB with the XIU, same result. Thanks for responding.
@Tanah Merah - Canadian companies are more concentrated in the financials, energy, and materials sectors than the U.S., leading to less sector diversification overall. The top companies in the Canadian stock market are also more concentrated than those of the U.S., leading to higher single security risk.
@Tribu Kahu - ZQQ is extremely undiversified - nearly half of the fund invests in technology companies (so no, this should not be a core holding in a diversified portfolio).
@Luca Valeri - Sounds fine, but you could also consider simplifying things by holding an all-equity ETF: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ZlmzFsZoV_o.html As well, VEE is subject to two layers of foreign withholding tax in a TFSA, whereas XEC is now only subject to one layer: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-meW1Pf5uvNM.html
@@JustinBenderCPM The reason for opting to go with separate ETF's vs the all-equity is because I want a higher allocation to the US market, more then 40%. Thanks for pointing out the structure change in regards to XEC. VEE does have a higher yield but does get dinged twice. Based on the updated XEC structure do you believe it has an edge of VEE going forward? Thanks
VUN seems to be holding all the individual securities of the index now rather than VTI. I would suspect that Blackrock Canada may be in the process of switching XUU over to this type of fund structure as well (similar to how they have XEF setup) because the selection individual securities being held feels kind of random...
@Jacob Weber - Vanguard Canada's website is misleading. Although they list the underlying individual U.S. stocks, this exposure comes from VTI (Vanguard Canada is not purchasing individual U.S. stocks in VUN).
@@JustinBenderCPM Interesting that that's not made clear on their website. For one of the pairs of funds were there isn't really a difference between Vanguard/Blackrock I actually chose the Blackrock one because they have a better website!
@Roger Fed - You've come to the right place! Feel free to check out the channel for more helpful videos :) Also check out my model ETF portfolios page: Model ETF Portfolios: www.canadianportfoliomanagerblog.com/model-etf-portfolios/
@Nelson Enegbuma - Thanks Nelson! In the meantime, we'll continue releasing online content, so this should help you make good investment choices until you're ready :)
@@JustinBenderCPM What a gentleman. I've hit the notification bell for the first time today. I don't want to miss a single video of this series. Great content.
@Mr.Spacely - There is ZDJ, but it hedges away its U.S. currency exposure: www.bmogam.com/ca-en/advisors/investment-solutions/etf/bmo-dow-jones-industrial-average-hedged-to-cad-index-etf-zdj/
