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Toronto-Dominion Bank (The) (TD)
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iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Would both these 2 ETF fall under Financial services? I have 25% holding in this sector and need to reduce and wonder which ETF would you sell to bring down the weight. Both are 5% weight in my RRSP account. I have also some other financial stocks in a non registered account but reluctant to sell as this would would create a capital gain and I have no loss to offset the gain with.
Thanks
Thanks
5i Research Answer:
XHY is a high yield bond bond holding US bonds. While it is sensitive to rates, we would consider it 'fixed income' as opposed to financial services. CPD is a preferred share ETF. It is a hybrid of equity/fixed income in terms of how it behaves. It does have 46% of the fund currently in banks and insurance companies, and thus we would consider it 'partly' financial services. Both should act somewhat differently than bank stocks, for example.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in CPD, XHY.