Little to differentiate Canadian Equity ETFs.
Lots. Too much. There simply isn’t a lot of differentiation in the Exchange Traded Fund (ETF) products covering the Canadian Equity marketplace. (Between these three ETF’s, at least). The buy-and-hold investor would lean toward VCE. The active trader would stick with XIU.
The (now updated) table comparing VCE, XIU & ZCN makes the point … there is little differentiation. How does an investor decide which of VCE, XIU and ZCN to use?
For a buy-and-hold investor, it’s likely VCE. It has lower MER and quarterly distributions (which mean that larger amounts get reinvested … no idle cash), is slightly more diversified and, as a buy-and-holder, liquidity of XIU isn’t needed.
For the Institutional investor or Trader, XIU is likely the better choice because of the ample liquidity.
Bonus points to iShares for disclosing ‘all-in’ MER for XIU and their ETFs in general.
I own XIU (personally) but will buy VCE when I add to existing Canadian Equity holdings.
_____________________________________________________________________________________Next time? More Risk Management. Doug Cronk CFA is Manager, Investments for a Canadian Pension Plan