Posted by CANbike on Tue, 29 Jul 2014

Canadian Couch Potato Indexed ETFs

The following are a list of core passive indexed exchange traded funds for a Canadian couch potato portfolio.

Indexed Canadian Bonds

Fund Manager Name MER Ticker
BMO Aggregate Bond Index ETF 0.20% ZAG
Horizons CDN Select Universe Bond ETF 0.15% HBB
iShares Canadian Universe Bond Index ETF 0.33% XBB
Vanguard Canadian Aggregate Bond Index ETF 0.23% VAB

Indexed Canadian Equity

Fund Manager Name MER Ticker
BMO S&P/TSX Capped Composite Index ETF 0.05% ZCN
Horizons S&P/TSX 60™ Index ETF 0.07% HXT
Horizons S&P/TSX 60 Equal Weight Index ETF 0.50% HEW
iShares S&P/TSX 60 Index ETF 0.18% XIU
iShares Core S&P/TSX Capped Composite Index ETF 0.05% XIC
Vanguard FTSE Canada All Cap Index ETF 0.13% VCN

Indexed US Equity

Fund Manager Name MER Ticker
BMO S&P 500 Index ETF 0.10% ZSP
BMO S&P 500 Index ETF (US Dollar Units) 0.10% ZSP-U
BMO S&P 500 Hedged to CAD Index ETF 0.10% ZUE
Horizons S&P 500® Index ETF 0.15% HXS
iShares Core S&P 500 Index ETF 0.10% XUS
iShares Core S&P 500 Index ETF (CAD- Hedged) 0.10% XSP
Vanguard Total Market Index ETF 0.17% VUN
Vanguard (US$) Total Stock Market ETF 0.05% VTI

Indexed International Equity

Fund Manager Name MER Ticker
BMO MSCI EAFE Index ETF 0.20% ZEA
BMO MSCI EAFE Hedged to CAD Index ETF 0.20% ZDM
iShares Core MSCI EAFE IMI Index ETF 0.20% XEF
iShares MSCI EAFE Index ETF (CAD-Hedged) 0.50% XIN
Vanguard FTSE Developed ex North America Index ETF 0.31% VDU
Vanguard (US$) FTSE Developed Markets ETF 0.09% VEA


Indexed Global Equity

Fund Manager Name MER Ticker
iShares MSCI World Index ETF 0.47% XWD
Vanguard All-World ex Canada Index ETF 0.25% VXC
Vanguard (US$) Total International Stock ETF 0.14% VXUS

These funds are included as they may make a coach potato portfolio even simpler.

Usually four funds are invested in and weighted proportionally for rebalancing.

  • i.e. 40% bonds, 20% Canadian equity, 20% US equity, and 20% international equity

However, with the introduction of these global funds it may possible to invest in three funds instead.

  • For example, a Vanguard Canada ETF mixture of 40% VAB, 20% VCN, and 40% VXC (50% US equity and 50% international equity) would maintain the above proportions for an annual fee of 0.218%

Note, though, management expense ratios (MERs) are not the only factor when considering an ETF. The performance, composition, and liquidity of funds should be researched before purchasing any funds.


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