MSCI Emerging Markets IMI Index (XEC), 0.28% If you’re going to purchase ETFs, Vanguard funds remain the cheapest option available, although both BMO and BlackRock offer competitive products. Thanks VAB – Legacy here. In recent weeks, I've been writing about how it's getting easier and cheaper to build a solid globally diversified portfolio using all-in-one ETFs. 2. Edit: pretty much a duplicate of … That’s still low, but it’s almost 50% higher than what U.S. investors pay. Learn everything about Vanguard FTSE Emerging Markets ETF (VWO). Detailed price information for Ishares S&P TSX 60 Index ETF (XIU-T) from The Globe and Mail including charting and trades. Get your ETF recommendation online. Also, XEC should ideally be about 10 – 15% of your overall ETF or investment portfolio. Detailed price information for Vanguard S&P 500 Index ETF (VFV-T) from The Globe and Mail including charting and trades. It should be kept in mind that both VXC and XAW under-represent emerging markets, and therefore you might want to add XEC, VEE to truly represent the global equity markets. With either, your withholding tax drag will increase from 0.3% to around 0.7% annually. Granted, they were late to the game with the iShares S&P 500 (XUS), which is now the fourth ETF that tracks the S&P 500 with no currency hedging. BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager … Top Europe stock ETF gets largest inflow since 2017 on stimulus An US$82B gold-bug ETF has biggest exodus since March A booming stock market drives billions to funds that cap losses A simple way to make your global equity ETFs more representative of the entire world is to include about 20% of your holdings in XEC or VEE emerging market ETF (even though there are emerging holdings already in the XAW and VXC). In an era when ETFs are becoming increasingly narrow and specialized, the new iShares funds launched this week were a pleasant surprise. The international stocks are held directly instead of through a US ETF which leads to 1 less level of foreign withholding taxes which means 15% less tax on any dividends from those stocks. For that, there’s the iShares Core MSCI Emerging Markets IMI Index ETF (XEC), which holds IEMG, or the Vanguard FTSE Emerging Markets All Cap Index ETF (VEE), which holds VWO. Vanguard’s ETF shares currently charge just 0.05% in expenses. ZEM can replace XEC and the two funds track each other extremely closely. If you prefer more on the Canadian equities then VCN would be the right choice to make. For example, XEM's management fee is still 0.82% (! Too much risk vs diversity? XEC does not, it holds a USD ETF of emerging markets. Basically, when I started investing a few years ago I was a complete newbie and decided to get my feet wet by starting with the TD e-series since they were the easiest (ETFs were scary to me back then). The Fund invests in a variety of debt securities primarily with a term to maturity greater than one year. In our example above, from June 11 to July 10, the performance of XEC and VEE differed by just a single basis point (–1.39% versus –1.40%). Free ratings, analyses, holdings, benchmarks, quotes, and news. In a non-registered, you can recover the foreign withholding tax on both VXC and XAW. So the combination of XEF and VEE has no exposure to South Korea, excluding companies like Samsung, LG, Daewoo and Hyundai. : CanadianInvestor. 6. WANT TO LEARN MORE? VEE is in Canadian dollars vs. VWO whch trades in USD, so you can't put it in a TFSA. 7. Performance charts for BMO Low Volatility Canadian Equity ETF (ZLB - Type ETF) including intraday, historical and comparison charts, technical analysis and trend lines. ), yet the newer XEC has a 0.25% management fee. ETF Series of the BMO Mutual Funds trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. The iShares MSCI EAFE IMI Index ETF seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the MSCI EAFE Investable Market Index, net of expenses. Unfortunately, TD does not have any emerging markets e-series funds so I only held TDB911 for my international equities (developed markets only). I currently have no exposure to emerging markets. Investors can avoid holding individual ETFs for U.S. equity, international equity, and emerging markets by choosing one of these two global equity ETFs (All World, ex Canada). VEE is subject to two levels of withholding taxes, but it should be under 70 basis points. Or just stick with something like XEC or EMGF for a 10+ year hold in a risk managed growth ETF portfolio. VXC – VXC is an International ETF with a heavy US (50%+) weight. Unfortunately, the best Canadian ETF VEE is a fair bit higher at an MER of 0.37%. Both are good though. Either do XEF/XEC or VIU/VEE. Performance charts for BMO Covered Call Utilities ETF (ZWU - Type ETF) including intraday, historical and comparison charts, technical analysis and trend lines. You shouldn’t hold VEE and XEF together. The gigantic size of the US ETFs ensures plenty of trading volume, which in turn means the spread between bid and ask prices is always very tight. All World ex Canada (Global equity): A Canadian investor can avoid holding individual ETFs for the United States, International, and Emerging Markets by choosing an All World ex Canada ETF. BlackRock, on the other hand, starts new ETFs with lower fees, but doesn't lower fees on older ETFs. Understand Vanguard's principles for investing success. VEE also comes with a lower MER than XEC, at just 0.24%. XEC has a 0.27 MER. Also found his reasoning for XEC+XEF vs VIU+VEE. Sounds like basically he isn't switching to the latest and greatest for the sake of slight advantage that may not be permanent. Just wondering what you would think of using a few country specific ETFs for emerging markets exposure since China, South Korea, and Taiwan make up over 50% of XEC holdings. Learn about XEF (XTSE) with our data and independent analysis including price, star rating, asset allocation, capital gains, and dividends. Underperformance of replacement ETF. See how 9 model portfolios have performed in the past. (Vanguard, BMO and Horizons all beat them to market. Compare ETFs vs. mutual funds. Excellent at a 0.25% MER, covering India, which is a star performer in the emerging markets. VWO has become incredibly popular for a reason; the extremely low expense ratio charged by this ETF makes it a cheap way to access an asset class that is a critical component of any growth-oriented long-term strategy. Vanguard FTSE Emerging Markets All Cap Index ETF (VEE) iShares Core MSCI EAFE IMI Index ETF (XEF) iShares Core MSCI Emerging Markets IMI Index ETF (XEC) Global Equity ETFs. The index is a market capitalization-weighted index provided by MSCI, Inc. that includes securities from Europe, Australasia and the Far East. XEC – iShares Emerging Markets ETF. Sounds like basically he isn't switching to the latest and greatest for the sake of slight advantage that may not be permanent. We have a posting in progress that will look in general at 'funds of funds', a single ETF which holds a number of other ETFs. ZEM tracks the same index as XEC but holds 85% stocks directly. Some investors choose to do that anyway, since VEE is more diversified with ~4000 holdings, vs. ~2000 for XEC. That is an ideal result, but things don’t always work out so well. The iShares Core MSCI EAFE ETF seeks to track the investment results of an index composed of large-, mid- and small-capitalization developed market equities, excluding the U.S. and Canada. For example, VEE's management fee was lowered from 0.49% to 0.23%. The same applies to ETF improvements. Add on a basis point or two, and while it’s still low, the expense ratio would be closer to the iShares Core S&P 500 ETF‘s (IVV) 0.07% or SPDR S&P 500 ETF‘s (SPY) current 0.0945%. In the end, Vanguard FTSE Emerging Index ETF (VEE) was selected over last year’s pick, iSharesCore MSCI Emerging Markets IMI Index ETF (XEC). VEE vs. VWO VEE is a past pick--it's the best emerging market ETF in Canada. BMO Aggregate Bond Index ETF has been designed to replicate, to the extent possible, the performance of the FTSE TMX Canada UniverseXM Bond Index™, net of expenses. 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