Wednesday, 24 February 2016

XIC: A candian ETF to watch

We discussed about the ETF holding 60 large companies of Canda, XIU beofre
Let us have a look on another ETF , XIC, which covers large, medium and small companies of Canada. 
If I buy XIC, I am buying all of the TSX stocks: Really?
It was first introduced in 2001 and owned by iShares and managed by Blackrock asset management. 
This one holds big banks, other big financial companies, gold and energy. So all sectors are covered right?
Another interesting fact is XIC is a capped weighted ETF. I was looking for what the heck is capped weighted. XIC cannot hold more than 10% of one holding. It is good for the passive investor.
The management expense ratio is 0.26%, which is very low. With the stock market going down now a days, it is trading in the $19 range. If you don't have a big chunk of money to invest, this is a good ETF to consider for small monthly investments. Talk to your bank about this. If you are a self directed investor, doing dividend reinvestment(DRIP) is a good idea to get extra units without paying the fess.
Even though you don't like to buy XIC or XIU, you still can use them to research on which individual stocks you want to purchase to get great returns.

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