Q: Hi there - thanks for your reply. Just a follow up for clarification. You mentioned XEQT has exposure to fixed income which you noted as a reason for a better etf for long term hold, but I think both XEQT and XWD are approximately 100% in equities, with a different approach to geographical weighting. Does this change your recommendation of XEQT over XWD long term? Thank you!
5i Research Answer:
You are correct, we will adjust the prior answer. We still favour XEQT due to the more diverse geographical exposure with approximately 44% of total holding in the US vs. XWD with nearly 70% in the US. XEQT also offers a slightly higher yield at 1.90% vs XWD at 1.2%. Our other comments on management fees and other options stand. We still do favour XEQT > XWD, although they have some similarities.