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iShares Core MSCI EAFE IMI Index ETF (XEF)
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iShares Core MSCI Emerging Markets IMI Index ETF (XEC)
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Invesco Global Companies Fund Series F (AIM1517)
Q: What do you think of AIM1517 for international exposure?
I have a couple of mutual funds left in my RRSP that I bought YEARS ago. I’m trying to decide if I should keep them or replace them with an ETF(s)? I currently hold XEC and XEF for international exposure. Is it worth keeping AIM1517 for international exposure, it’s 60%+ US stock so not sure how international it really is. Would something like XEC and XEF make more sense and provide better overall results? Is there a better ETF(s) I should be looking at for that goal?
I have a couple of mutual funds left in my RRSP that I bought YEARS ago. I’m trying to decide if I should keep them or replace them with an ETF(s)? I currently hold XEC and XEF for international exposure. Is it worth keeping AIM1517 for international exposure, it’s 60%+ US stock so not sure how international it really is. Would something like XEC and XEF make more sense and provide better overall results? Is there a better ETF(s) I should be looking at for that goal?
5i Research Answer:
AIM1517 has solid peformance recently and historically and looks to hold some high quality larg-cap stocks. We think there are more diverse options for international exposure and as you mentioned, with 69% US holdings we do not really view it as a fund with international exposure. XEF is a solid option while we like XEC less-so just due to weaker performance. We would also recommend VIU which focuses on developed international markets and has a similar expense ratio at 0.23%. AIM1517 has a higher fee than comparable ETFs, and if the goal is international exposure we are fine with moving on from it. The Fund's general performance has been strong enough that we do not actively dislike it.