Q: Pat, I notice that in Canadian Wealth Advisor you recommended the SPDR S&P 500 ETF. Why would this be better than the iShares XSP, which is hedged to the Canadian dollar? The U.S. dollar’s rise against the Canadian dollar this year has me thinking it could fall.

A: No one can consistently predict currency movements. However, a hedged fund pays that fee whenever it has a hedge in place to avoid currency losses, regardless of whether the hedge produces a gain or a loss for the fund.

Note that even if the U.S…. Read More

Canadian blue chips dominate these two Canadian ETFs

Canadian blue chips dominate these two Canadian ETFs

These two Canadian ETFs track Canada’s best-established indexes and provide low-fee exposure to widely traded blue chip stocks.
When you invest in ETFs, simpler is generally better. And each of these two Canadian ETFs provides a straightforward approach to investing in a selection of Canada’s top… Read More

Currency hedging comes at a cost with ETFs

Currency hedging comes at a cost with ETFs

Any currency volatility can send investors hunting for hedged ETFs. But the extra costs limit the appeal of currency hedging.
If you want to buy U.S. stocks and hedge against the U.S. dollar’s movements against the Canadian dollar, you could buy a hedged ETF like the… Read More

How to pick the best Canadian index mutual funds

How to pick the best Canadian index mutual funds

Canadian index mutual funds were among the better financial innovations to come along in the past few decades. Still the popularity of ETFs may soon eclipse them
Canadian index mutual funds are specialized mutual funds that aim to equal the performance of a Canadian market index,… Read More