This is an excellent video. I've been investing into these ETFS myself and I always thought VCN and XIC were exactly identical. It is nice to see you tell the story and go under the hood to really breakdown what these ETFs are doing.
@Michelle Farrington - I'm so happy to hear you've been enjoying the videos (and have subscribed to the channel!). There's many more great videos on the way, so stay tuned! :)
Very helpful video Justin! Something I've always wondered about ETFs, if an ETF holds other ETFs (eg XUU), do the MERs of the underlying ETFs stack in addition to the outer ETF, or does the MER of only the outer ETF count?
Good stuff as always Justin. Heres a question with XIC, VCN and ZCN having the same MER, but with XIC and ZCN having more stocks, wouldnt they be better than the VCN because of more diversification?
@dmceye: I touch on that point in the video - it's more a matter of preference (likely not to have much impact over the long term). I do prefer S&P's index methodology when it comes to foreign ownership rules though (i.e. it does not treat Canadian investors like they are non-residents, whereas the FTSE non-domestic methodology does).
Hi Justin, great series of videos! Thanks. I'm very curious as to why pretty much all PWL model portfolios as well as Canadian Couch Potato model portfolio use VCN instead of XIC for their Canadian equity exposure. Any thoughts?!
@Khaled: Thanks! When I first created the PWL/CPM model ETF portfolios, I tried to include all of the existing ETF companies at the time. Feel free to substitute ZAG for XBB, VCN for XIC/ZCN, XUU for VUN, XEF/XEC for VIU/VEE - these combinations are all expected to have similar returns going forward.
@@JustinBenderCPM Ok, if you insist, your the pro..lol What do you honestly think of that portfolio construction? Also, if you don't mind, what are your feelings about the new Vanguard all in one portfolio's for retiree's such as VBAL?
@HamiltonRb: The holding in VTI seems a bit redundant (since you already have US equity exposure through VT). I think the Vanguard Asset Allocation ETFs could also be a decent solution for retirees (maybe in combination with a 1-5 year GIC ladder and an investment savings account).
@@JustinBenderCPM Thanks for your input, much appreciated. The reason I used VTI was to get a broad range of all caps in US, where as the VT is 50% S&P 500, and the US being such a big economy I had thought that this way I would get a bit more than 25% of the portfolio into US equities. Food for thought on the GIC ladder
@HamiltonRB: VT includes thousands of large, mid and small cap US companies - I've included a link to their October 31, 2018 annual report, which includes a full list of the holdings: www.vanguard.com/funds/reports/q6280.pdf
Is it true that if I put a mouse in an ETF and tell Vanguard it was there when I bought it they have to give me a case (12 units) for free? Thanks for the video, ya hoser.... (Based on the thumbnail you used for this video, I *really* hope you get the reference) :)
I think I might be wired this way, but no matter from what angle, from what video, from which talker, I just cannot wrap my head around ANY investment anything. This has caused me non stop problem. I just cannot learn it, like a lack of imagination or just a mental block. I'm pretty sad. Everyone is saying this video is great, but for me it means nothing :(
The same happens to me with baseball. No matter what I do or watch or who tries to explain it to me my mind immediately blanks out. I can't understand the game!
Justin's understanding of financial products is on another level compared to most financial advisors in Canada. Here is another example!
@Alan Pfahl: Thanks! (although most Canadians would agree that the financial advisor bar is set extremely low in Canada ;)
@@JustinBenderCPM You're so right...I really shortchanged you comparing you to those guys. Sorry Justin! 😀
Great info - well done, Justin!
@Ben Felix: Thanks!
I came across to your channel a couple of days ago. I am thoroughly happy . The content is outstanding in comparison to what is out there. Subscribed
@Matias Iozzia - Excellent news! We're so glad you stumbled across the channel :)
This is an excellent video. I've been investing into these ETFS myself and I always thought VCN and XIC were exactly identical. It is nice to see you tell the story and go under the hood to really breakdown what these ETFs are doing.
@Tyson Dennis-Sharma - I'm so glad you enjoyed the video - thanks for watching and commenting! :)
Wow - good job JB! That was an exhaustive, yet fast, overview of the history and current Canadian equity ETF marketplace.
@Marko Koskenoja: Thanks! That was my attempt to cut the topic down to the bare bones ;)
This is the kind of education I have been looking for! Thanks a lot for all the effort you put in your videos. You've earned yourself a subscriber. :)
@Michelle Farrington - I'm so happy to hear you've been enjoying the videos (and have subscribed to the channel!). There's many more great videos on the way, so stay tuned! :)
Excellent! Thank you. Looking forward to the rest of the series.
Thank you so much for this video! I'll enjoy looking forward to the next videos in this series! Amazing as always!
Very nice, thanks for all those amazing videos
awesome video thanks for the information.
Thanks for the explanations, especially the historic background!
@Luke Ratzlaff: You're very welcome - thanks for watching!
Wow! Amazing video. You answered a lot of questions I had regarding ETF's.
... Where you click a like first, before watching the video. Thanks for the information.
@Sai Online: I do that for every Primus or Les Claypool video ;)
Amazing info! Looking forward to more.
@BestPCGaming: Glad to hear you're enjoying the content. There will be many more "Understanding ETF" videos being released over the coming months.
@@JustinBenderCPM Wow, can't wait :) Will share this video for sure!
Very helpful video Justin! Something I've always wondered about ETFs, if an ETF holds other ETFs (eg XUU), do the MERs of the underlying ETFs stack in addition to the outer ETF, or does the MER of only the outer ETF count?
@Julian Cui: Great question - only the MER of the outer ETF counts (the product providers don't double-dip...or at least they shouldn't!).
@@JustinBenderCPM Good to know, thanks for the quick reply. Looking forward to your future videos on ETFs!
Good stuff as always Justin. Heres a question with XIC, VCN and ZCN having the same MER, but with XIC and ZCN having more stocks, wouldnt they be better than the VCN because of more diversification?
@dmceye: I touch on that point in the video - it's more a matter of preference (likely not to have much impact over the long term). I do prefer S&P's index methodology when it comes to foreign ownership rules though (i.e. it does not treat Canadian investors like they are non-residents, whereas the FTSE non-domestic methodology does).
@@JustinBenderCPM VCN seems to keep a lower turnover rate than ZCN or XIC. That might be something to consider for investors in taxable accounts?
Hi Justin, great series of videos! Thanks. I'm very curious as to why pretty much all PWL model portfolios as well as Canadian Couch Potato model portfolio use VCN instead of XIC for their Canadian equity exposure. Any thoughts?!
@Khaled: Thanks! When I first created the PWL/CPM model ETF portfolios, I tried to include all of the existing ETF companies at the time. Feel free to substitute ZAG for XBB, VCN for XIC/ZCN, XUU for VUN, XEF/XEC for VIU/VEE - these combinations are all expected to have similar returns going forward.
@@JustinBenderCPM Thanks for your reply!
Great job! 👏
@Bruno Alves: Thank you, kindly :)
Opinion on VFV, XIU, RBOT, HXQ, XIT ?
I have split my portfolio into 4 buckets. 1/4 each of XIC, VTI, VT and XBB. Rebalance twice a year and have a drink
@HamiltonRb: That's pretty efficient...but have you considered rebalancing just once a year and having two drinks instead ;)
@@JustinBenderCPM Ok, if you insist, your the pro..lol What do you honestly think of that portfolio construction? Also, if you don't mind, what are your feelings about the new Vanguard all in one portfolio's for retiree's such as VBAL?
@HamiltonRb: The holding in VTI seems a bit redundant (since you already have US equity exposure through VT).
I think the Vanguard Asset Allocation ETFs could also be a decent solution for retirees (maybe in combination with a 1-5 year GIC ladder and an investment savings account).
@@JustinBenderCPM Thanks for your input, much appreciated. The reason I used VTI was to get a broad range of all caps in US, where as the VT is 50% S&P 500, and the US being such a big economy I had thought that this way I would get a bit more than 25% of the portfolio into US equities. Food for thought on the GIC ladder
@HamiltonRB: VT includes thousands of large, mid and small cap US companies - I've included a link to their October 31, 2018 annual report, which includes a full list of the holdings: www.vanguard.com/funds/reports/q6280.pdf
are there similar etfs separated by sector like top tech companies?
Is it true that if I put a mouse in an ETF and tell Vanguard it was there when I bought it they have to give me a case (12 units) for free? Thanks for the video, ya hoser....
(Based on the thumbnail you used for this video, I *really* hope you get the reference) :)
@Hyperpandas - I'm glad you liked the video - it was shot in 3B (three beers, and it looks good, eh?).
I think I might be wired this way, but no matter from what angle, from what video, from which talker, I just cannot wrap my head around ANY investment anything. This has caused me non stop problem. I just cannot learn it, like a lack of imagination or just a mental block.
I'm pretty sad. Everyone is saying this video is great, but for me it means nothing :(
The same happens to me with baseball. No matter what I do or watch or who tries to explain it to me my mind immediately blanks out. I can't understand the game!