iShares S&P/TSX 60 Index ETF (XIU.TO)

VCN gives you more diversification and mid and small cap exposure as an alternative.

Does seasonality apply to an index such as TSX 60? Seasonality in Canadian markets is very pronounced. The best period to own the TSX Composite is from October 28th each year, right through until May 5^th each year. Chart is showing a strong upper trend and we are getting very close to breaking through to new highs. The TSX Composite is going to be the 1^st major equity index in the world to move to a new high and it could do this in the next couple of days. Historically, the best time to own the Canadian market relative to the US market is from the middle of December right through until the middle of March. That is the middle of RRSP contribution time, which is one of the reasons Canadian markets tend to outperform US markets at that time.

Still likes this. There are also alternatives to this. This is pretty much a core holding for him. He also likes it because it is optional.

Can you take a 20% position? He can do 10-15%. Seasonally you can buy it in the fall and sell in the spring. Well diversified ETF but don’t over trade yourself.

60 largest companies in Canada. Thinks the Canadian markets has underperformed and have not set record highs the way the US has. If the US market and the US economy are as good as the market seems to think it is going to be, then the Canadian market will participate and will do so in a leveraged fashion and we will outperform the US in the next couple of years.

Loves it, but you get only 60 stocks, a large cap, dividend bias. He prefers a small cap bias to get more growth.

He has been holding off a little bit. He wants to see where this market is going. 29% is banks.

We are right at the 52 week high. 13000 is a round number for the TSX and is 61.8% retracement and so is a resistance area. The TSX may or may not reach this target in the next couple of months. Cut your position after another 1-2% up.

(A Top Pick Dec 22/11. Up 10.55%.) He does have concerns about the Canadian market. We have to see the Keystone thing go through.

If you are going to sit back and let the market dictate your returns, you might want to consider HXT because it is that much cheaper. .05% management fee. He would rather control his weightings.

Is a market-leading product. The biggest ETF in Canada. He would personally rather have more small caps. The difference in risk is nominal but the expected return is 1-2% higher. E.g. XIC.

(Top Pick Nov 4/11, Up 2.71%) Didn't expect it to under perform. Lifted his hedge today. Oils are holding it off. It is the fact that Canadian oil producers are not getting full price for their oil.

Doesn't think they go through highs in the next couple of months. Cut your position when it reaches this resistance.

Because this is a large cap ETF, it tends to be growthy. Good stable thing to have. Tax effective. Very cheap. There are other ETF’s he likes more in the Canadian space.