Investment Q&A

Q: Hi there,

With both ETFs tracking the same index, why with a much higher MER does XIU get so much more volume? Is it because of how long the ETF has been out? I'm a bit surprised to see even with that, VCE hasn't taken in more volume than it has over time as it's not new and the MER is much less. Both are from equally reputable companies also.

Thanks!

Q: Hi there, I'm building a portfolio based on the 4% withdrawal rule. I read a study where based on country specific stock market data, the 4% withdrawal rule only worked in Canada, US and maybe 3 other countries. Based on this study and using history as a guide - if one were to build a portfolio with 50/50 Canada and US exposure, would it be best to use VCE and VFV or VCE and XSP? Also, if VCE is not the most appropriate Canadian ETF, what would be the most suitable? I've seen XIU, XIC and VCN often mentioned, but it appears like VCE has a slight outperformance?

Thanks!

Q: I am looking for an index fund that follows the Canadian market, and I have been using XIU for some time. I have funds allocated to each of my two children in the same account, and I want to buy analogous, but unique, index funds to make the bookkeeping simpler. I have come across HXT (claims to follow TSX60) and VCE (claims to follow FTSE Canada index, of which I am unfamiliar), both of which seem to be cut from similar cloth. Can you provide insight on the following:

- Can I consider these three ETFs interchangeable, or are there profound differences between them?

- Do they have similar expense ratios, or is there one that is an outlier (being either more expensive or cost-efficient)?

- Is there another Canadian index ETF that you would recommend above these?

I have separate US S&P ETFs and I feel I have enough selection options, which is why my question is limited to ETFs which follow the Canadian TSX60 index. As always, I appreciate any insight you may have to offer, and I look forward to your response.

Q: I have these four ETFs currently and I have new money to add. Should I top up one (or all) of these, or is there one you feel would be a good complement. The four ETFs probably indicate my risk profile, but generally I am pretty conservative (a couch potato). Thank you.

Q: As between the two Canadian Equity ETFs - XIC and VCE - which one would be your choice?

Q: What ETF's would you suggest for broad exposure to the Canadian market?

Thanks
Amy