Q: Hi
I presently own XEH.
Thinking of selling XEH and replacing it with FCIV because of the pacific exposure and possible greater growth.
Your comments or other suggestions are always most welcome.
Thank you
Mike
I presently own XEH.
Thinking of selling XEH and replacing it with FCIV because of the pacific exposure and possible greater growth.
Your comments or other suggestions are always most welcome.
Thank you
Mike
5i Research Answer:
In terms of recent returns, FCIV has performed much better than XEH with total year-to-date return at 20.13% versus 11.55%. Three-year annualized return for FCIV is 11.07% while XEH is 8.89%. XEH has a lower MER at 0.28% versus FCIV’s MER of 0.51%. FCIV has more international exposure with Japan being its largest holding country at 23.6%. The Pacific exposure could provide FCIV with greater growth in the future over XEH. Distribution yield is 3.69% for FCIV while XEH is 4.17%. The higher fees make FCIV a bit less attractive, but it should be positioned for more growth than XEH. We are OK with swapping XEH for FCIV if the goal is growth.