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Global X S&P 500 Index Corporate Class ETF (HXS)
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Berkshire Hathaway Inc. (BRK.B)
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Avantis All International Markets Value ETF (AVNV)
Q: Thanks for a recent suggestion for U.S. exposure in an open CAD account - HXS.
In my RRSP I was going to add BRK.B and was surprised by its low PE ratio of about 9. Is this correct? Maybe there is a better metric to use to evaluate this equity(?)
AVNV seems to be the perfect non-U.S. compliment in my RRSP (except for that bit of exposure it has to Canada…which is fine). I like the fact that it is an international Value ETF - a mixture of large, small and Emerging Market. I doubt there a better comparable option, but figured I’d ask if you are aware of one.
In my RRSP I was going to add BRK.B and was surprised by its low PE ratio of about 9. Is this correct? Maybe there is a better metric to use to evaluate this equity(?)
AVNV seems to be the perfect non-U.S. compliment in my RRSP (except for that bit of exposure it has to Canada…which is fine). I like the fact that it is an international Value ETF - a mixture of large, small and Emerging Market. I doubt there a better comparable option, but figured I’d ask if you are aware of one.
5i Research Answer:
We think a better metric to evaluate BRK.B’s valuation over the years is Price/Book, which is currently at 1.5x, historically BRK.B trades in the range of 1.3x to 1.6x. This is because BRK.B’s earning was widely affected by the gain/loss of its investment portfolio. On the international front, we think these ETFs provide investors exposure to high-quality businesses with decent fundamentals such as ICOW, TTAI