Canadian ETFs

Four investment companies currently offer exchange-traded funds listed on the Toronto Stock Exchange. The following list contains all passively managed ETFs; it excludes actively managed, inverse and leveraged ETFs, all of which are inappropriate for Couch Potato portfolios.

When choosing an ETF, look for a product that tracks an understandable, transparent and broadly based index at low cost. For a thorough explanation of how to compare ETFs, see Dan Bortolotti’s Complete Couch Potato Roadmap in MoneySense magazine.

For examples of how to use these ETFs in a diversified portfolio, visit the Model Portfolios page.

ETFs that hedge their exposure to foreign currency are marked with an asterisk (*).

iShares

The MERs listed below are based on iShares’ estimates. In early 2010, iShares announced that it will no longer absorb the GST/HST and other administrative expenses of their ETFs. The funds’ management fees are listed on the iShares website, but the full MERs will not be known until the 2010 annual reports are published.

Canadian Equity Ticker MER Index tracked
S&P/TSX Capped Composite XIC 0.27 S&P/TSX Capped Composite
S&P TSX 60 XIU 0.18 S&P/TSX 60
S&P/TSX Completion XMD 0.60 S&P/TSX Completion
S&P/TSX Small Cap XCS 0.55 S&P/TSX Small Cap
Dow Jones Canada Select Dividend XDV 0.55 Dow Jones Canada Select Dividend
Dow Jones Canada Select Growth XCG 0.55 Dow Jones Canada Select Growth
Dow Jones Canada Select Value XCV 0.55 Dow Jones Canada Select Value
S&P/TSX Capped Energy XEG 0.60 S&P/TSX Capped Energy
S&P/TSX Capped Technology XIT 0.60 S&P/TSX Capped Information Tech
S&P/TSX Capped Financials XFN 0.60 S&P/TSX Capped Financials
S&P/TSX Global Gold XGD 0.60 S&P/TSX Global Gold
S&P/TSX Capped Materials XMA 0.60 S&P/TSX Capped Materials
S&P/TSX Capped REIT XRE 0.60 S&P/TSX Capped REIT
Jantzi Social XEN 0.55 Jantzi Social
US Equity
S&P 500 * XSP 0.26 S&P 500
Russell 2000 * XSU 0.38 Russell 2000
International Equity
MSCI EAFE * XIN 0.55 MSCI EAFE
MSCI Emerging Markets XEM 0.83 MSCI Emerging Markets
China XCH 0.86 FTSE/Xinhua China 25
S&P CNX Nifty India XID 0.99 S&P CNX Nifty India
MSCI Brazil XBZ 0.76 MSCI Brazil
S&P Latin America 40 XLA 0.67 S&P Latin America 40
MSCI World XWD 0.46 MSCI World
Fixed Income
DEX Universe Bond XBB 0.33 DEX Universe Bond
DEX All Government Bond XGB 0.39 DEX All Government Bond
DEX All Corporate Bond XCB 0.44 DEX All Corporate Bond
DEX Short Term Bond XSB 0.28 DEX Short Term Bond
DEX Long Term Bond XLB 0.39 DEX Long Term Bond
DEX Real Return Bond XRB 0.39 DEX Real Return Bond
US IG Corporate Bond * XIG 0.31 Markit iBoxx USD Liquid Inv. Grade
US High Yield Bond * XHY 0.61 Markit iBoxx USD Liquid High Yield
Portfolio Builders
Conservative Core Portfolio Builder XCR 0.63 None
Growth Core Portfolio Builder XGR 0.63 None
Alternatives Completion Portfolio Bldr XAL 0.72 None
Global Completion Portfolio Builder XGC 0.74 None

Claymore

The MERs below are taken from the 2009 Management Reports of Fund Performance, which are published semi-annually and available from SEDAR. The MERs, which may be higher than the management fees disclosed on the Claymore website, reflect the true cost of the ETF more accurately. The MERs for newer funds will not be known until the 2010 annual report is published.

Canadian Equity Ticker MER Index tracked
Canadian Fundamental Index CRQ 0.68 FTSE RAFI Canada
S&P/TSX Canadian Dividend CDZ 0.64 S&P/TSX Cdn Dividend Aristocrats
Equal Weight Banc & Lifeco CEW 0.59 None
Oil Sands Sector CLO 0.64 Sustainable Oil Sands Sector
S&P/TSX Global Mining CMW 0.59 S&P/TSX Global Mining
US Equity
US Fundamental * CLU 0.71 FTSE RAFI US 1000
US Fundamental CLU.C 0.71 FTSE RAFI US 1000
International Equity
International Fundamental Index CIE 0.72 FTSE RAFI Developed ex-US 1000
Japan Fundamental Index * CJP 0.73 FTSE RAFI Japan
Global Monthly Advantaged Dividend CYH 0.63 Zacks Global Multi-Asset Income
Global Real Estate CGR 0.70 Cohen & Steers Global Realty Majors
Global Infrastructure CIF 0.70 MFC Global Infrastructure
Global Agriculture COW 0.70 MFC Global Agriculture
S&P Global Water CWW 0.65 S&P Global Water
BRIC CBQ 0.65 BNY Mellon BRIC Select ADR
Broad Emerging Markets CWO 0.70 MSCI Emerging Markets
China CHI 0.70 AlphaShares China All-Cap
Fixed Income
1-5 Year Laddered Government Bond CLF 0.17 DEX 1-5 Year Government Bond
1-5 Year Laddered Corporate Bond CBO 0.27 DEX 1-5 Year Corporate Bond
Advantaged Canadian Bond CAB 0.75 DEX DLUX Capped Bond
Advantaged High-Yield Bond * CHB 0.50 Barclays Capital US High-Yield
Premium Money Market CMR 0.19 None
S&P/TSX Canadian Preferred Share CPD 0.48 S&P/TSX Preferred Share
Commodity
Natural Gas Commodity GAS 0.95 NGX Canadian Natural Gas
Gold Bullion * CGL 0.53 None
Silver Bullion Trust * SVR.UN 0.60 None
CorePortfolios
Balanced Income CorePortfolio CBD 0.70 Sabrient Global Balanced Income
Balanced Growth CorePortfolio CBN 0.70 Sabrient Global Balanced Growth

BMO

The MERs below are taken from the most recent prospectus, when possible. They are higher than the management fees disclosed on the BMO website and reflect the true cost of the ETF more accurately. The MERs for newer funds will not be known until the 2010 annual reports are published.

Canadian Equity Ticker MER Index Tracked
Dow Jones Canada Titans 60 ZCN 0.18 Dow Jones Canada Titans 60
S&P/TSX Equal Weight Banks ZEB 0.60 S&P/TSX EW Diversified Banks
S&P/TSX Equal Weight Oil & Gas ZEO 0.60 S&P/TSX EW Oil & Gas
Equal Weight Utilities ZUT 0.55 Dow Jones Canada EW Utilities
Equal Weight REITs ZRE 0.55 Dow Jones Canada EW REITs
US Equity
US Equity * ZUE 0.33 Dow Jones US Large-Cap
Dow Jones Industrial Average * ZDJ 0.33 Dow Jones Industrial Average
NASDAQ 100 * ZQQ 0.35 NASDAQ 100
Equal Weight US Health Care * ZUH 0.35 Dow Jones Large-Cap Health Care
Equal Weight US Banks * ZUB 0.35 Dow Jones Large-Cap Banks
Global Equity
International Equity * ZDM 0.50 Dow Jones Developed Mkts ex-NA
Emerging Markets Equity ZEM 0.58 Dow Jones Emerging Markets
China Equity * ZCH 0.65 BNY Mellon China Select ADR
India Equity * ZID 0.65 BNY Mellon India Select DR
Global Infrastructure ZGI 0.55 Dow Jones Global Infrastructre
S&P/TSX Equal Wt. Global Base Metals ZMT 0.60 S&P/TSX EW Global Base Metals
Junior Gold ZJG 0.55 Dow Jones NA Select Junior Gold
Junior Oil ZJO 0.55 Dow Jones NA Select Junior Oil
Junior Gas ZJN 0.55 Dow Jones NA Select Junior Gas
Fixed Income
Short Federal Bond ZFS 0.23 DEX Short Term Federal Bond
Mid Federal Bond ZFM 0.20 DEX Mid Term Federal Bond
Long Federal Bond ZFL 0.20 DEX Long Term Federal Bond
Real Return Federal Bond ZRR 0.25 DEX RRB Non Agency Bond
Short Provincial Bond ZPS 0.28 DEX Short Term Provincial Bond
Short Corporate Bond ZCS 0.35 DEX Short Term Corporate Bond
Mid Corporate Bond ZCM 0.30 DEX Mid Term Corporate Bond
Long Corporate Bond ZLC 0.30 DEX Long Term Corporate Bond
Aggregate Bond ZAG 0.28 DEX Universe XM Bond
High Yield US Corporate Bond * ZHY 0.70 Barclays Capital US High Yield
Emerging Market Bond * ZEF 0.55 Barclays Capital EM Sovereign Bond

Horizons

Most of the ETFs in Horizons’ AlphaPro and BetaPro families are leveraged, inverse, or actively managed products, none of which are consistent with the Couch Potato strategy. The ETFs below are the exceptions.

The MERs listed for the commodity ETFs are from the 2009 annual reports. They are much higher than the management fees disclosed on the Horizons website and reflect the true cost of the ETF more accurately. The full MER for the S&P/TSX 60 Equal Weight ETF will not be known until the 2010 annual report is published.
Canadian Equity Ticker MER
AlphaPro S&P/TSX 60 Equal Weight HEW 0.50 S&P/TSX 60 Equal Weight

Commodity
BetaPro COMEX Gold HUG 1.28 COMEX Gold Futures
BetaPro COMEX Silver HUZ 1.28 COMEX Silver Futures
BetaPro Winter Nymex Crude Oil HUC 1.28 NYMEX Light Sweet Crude Futures
BetaPro Winter Nymex Natural Gas HUN 1.28 NYMEX Natural Gas Futures

China

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