John HoodHBP S&P/TSX 60 Index ETFHXT.TOBUYJan 19, 2018

XIU has a slightly higher MER. HXT does not distribute the income but is capitalized into the portfolio holdings. It makes it a capital gain than dividend income. The redemption cost is also a factor. Would prefer HXT all things considered.

HXT-T vs. XIU-T. They have basically identical holding but one pays a dividend so has different tax treatment. He is indifferent. In a TFSA, there is no reason to not to use the XIU-T.

A play on the blue chip stocks. It is Canada's cheapest at 3 basis points. It is swap based so pays no dividends. Canada is one of the better priced markets in the world.

This is a great representation of the TSX60. It is swap based, so this will not lead to any taxable distributions and a low MER.

(Past Top Pick, Sept. 21, 2017, Up 11%) It's for people who don't want income/yield (and lead to a better tax position). This ETF is swap-based and adds a little more risk. But he isn't worried about it.

(Past Top Pick, Sept.1, 2017, Up 11%) Covers the TSX, pays no dividends and charges a very low MER.

What's the difference if I use derivatives with HTX than not? Best to do this in taxable accounts, because you don't receive a dividend per se. With this, a counter-party guarantees that your ETF will generate that rate of return on the swap. The key is who is the counter-party which in this case is National Bank, which he's comfortable with. You don't get cash flow, but you get the exact rate of return on the Canadian equity market appreciation, plus dividend. It's a nice one-stop.

They are a little different than most other ETFs. This is a swap-based ETF. Basically, a contract between Horizon and National Bank. These are total return ETFs so there is no distribution so very efficient for people making high income.