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iShares MSCI Europe IMI Index ETF (XEU)
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RBC Quant European Dividend Leaders (CAD Hedged) ETF (RPDH)
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CI Europe Hedged Equity Index ETF (EHE)
Q: Looking for a Europe ETF in Canadian dollars to invest. XEU has the lowest MER and lowest return, EHE has the highest MER and highest 1 year return. RPDH return and MER are in the middle. Would you go with EHE for the highest return or are there other considerations? Thank you.
5i Research Answer:
We would go with XEU between these three Funds due to size and fee. XEU charges a 0.28% total expense ratio, significantly below RPDH and EHE. Additionally, XEU has $312.9M in assets making it a much larger Fund than the other two options as well. A benefit of going with a larger Fund is that the investment is much more liquid and has access to a wider variety of securities.