iShares S&P 500 Index ETF (XSP.TO)

(Top Pick May 1/14, Up 15.25%) It is hedged. He is indifferent right now about hedging but it was beneficial until now.

For years he had been buying this, but as the Cdn$ got to par, he transitioned and started buying a different one. Now, as the dollar has declined, he has started buying this again. This is basically just a large cap Index and a good place to be. It should be a part of everybody’s portfolio.

Great way to play an international market.. It gives you exposure to the international market, and they hedge the currency out. Sometimes you can enhance your returns by not being hedged on the foreign currency, which has been the case as the Cdn$ has dropped off. However, going forward as an international investor, with the weak Cdn$ as it is, you want to consider ETF’s like this and iShares MSCI EAFE (CAD-Hedged) ETF (XIN-T) to hedge your foreign currency exposure.

This gives exposure to the S&P 500 with a hedged product. He doesn’t want to be buying it with $0.80 dollars.

iShares TSX 60 (XIU-T) or iShares S&P 500 Cdn Hedged (XSP-t) because of energy? We have had far more exposure in Canada to oil prices than the US. This has led to a decline in the Cdn$, but at the same time we have to look at the opportunity that creates for Canadian exporters, and there could be a lot of business coming out of this as a result. He has not been selling his XIU, but if you are inclined to do so, you could lighten up on them and buy this, especially if you don’t have American exposure.

Canadian ETF with US stocks giving a Canadian dividend tax credit? The reality is that any foreign dividend comes through as “income”, and you can’t avoid that. He would normally buy this one, which is hedged.

Good time to write options on this? There is nothing wrong with writing options on this particular ETF. Not a very liquid market for options on ETFs like this. Also, the hedge on the Cdn$ distorts the performance somewhat. Also, there are a couple of US ETFs that actually do buy writes on the S&P 500, Power Shares (PBP-N) and Power Shares PWV-N). He might be more inclined to do that.

(All 3 Top Picks are cheap, pure, tax effective and broadly diversified.) Tracks the S&P 500 and is now giving access to foreign stocks for the price of only 0.1%.

(Top Pick Feb 7/13, Up 26.50%) Continues to hold it.

(A Top Pick Feb 7/13. Up 20.54%.) Almost replicates the S&P 500, but you do have the added costs of the hedging they put on the currency. You are protected if the US$ happens to drop.

He sold this, which is hedged, and replaced it with Vanguard S&P 500 Index ETF (VFV-T), which is unhedged.

This is the S&P 500 index and hedged back to the Cdn $. One of his Top Picks is on the S&P 500 with a Covered Right. He would prefer that because of where we are in the market right now. (See Top Picks.)

Likes this and has used it a fair bit in his practice. Any kind of a product that gives you broad diversification in the US market is something he is going to like. Good product.

(A Top Pick. (BNN shows July 3/12 but our records indicate Aug 3/12.) Up 21.17%.)