Our top ETF for 2019

Article Excerpt

SPDR S&P 500 ETF $258 (New York symbol SPY) holds the stocks in the S&P 500 Index; they are 500 major U.S. companies chosen based on their market cap, liquidity and industry group. The highest-weighted stocks for the SPDR S&P 500 ETF are Microsoft, 3.8%; Apple, 3.4%; Amazon.com, 2.9%; Alphabet, 2.9%; Berkshire Hathaway, 1.9%; Johnson & Johnson, 1.6%; Facebook, 1.6%; JPMorgan Chase, 1.5%; ExxonMobil, 1.4%; Pfizer, 1.2%; and UnitedHealth, 1.3%. The fund’s MER is just 0.10%; it yields 2.3%. The ETF should gain from an expanding U.S. economy. Its stocks also benefit from President Trump’s tax and regulatory reforms. In addition, the fund’s U.S. dollar exposure provides valuable diversification for Canadian investors, which is a long-term positive. Meanwhile, the four-year rule should be another big plus for this ETF. Here’s the short version of the rule: a particularly attractive buying opportunity appears in North American stocks about every four years, usually within a few months of the U.S. mid-term election (last held November 2018). Investors…

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