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Global X S&P 500 Index Corporate Class ETF (HXS)
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Global X S&P/TSX 60 Index Corporate Class ETF (HXT)
Q: Are Horizons HXS and HXT reasonable ETFs for a beginner investor with no interest in investing? Is there methodology still a viable one?
5i Research Answer:
HXS is an ETF of the S&P 500 index, but it is a 'total return' ETF which means that instead of a distribution yield being paid out (currently about 1.2%), it is reinvested into the ETF. This way, there is a tax advantage for some investors and the 1.2% would be in the form of capital appreciation instead of a distribution being paid out directly.
HXT is a total return ETF of the TSX 60, the largest 60 Canadian companies.
Both of these indices have performed well over the years and hold some of the largest, most stable, high-quality names in the broader markets. We would be quite comfortable holding these two ETFs.