Recommend me a ETF

pikergolf · #1 03-05-2016, 08:05 AM

New to this game, trying to get away from the MER of mutual funds. Unfortunately ETF don't come with advice. Have been looking at this one as the banks took a kicking in early part of the year and I am thinking I can catch the rebound. Thoughts or advice?

http://www.theglobeandmail.com/globe...mmary/?q=ZWB-T

Canehdianman · #2 03-05-2016, 08:06 AM

Google the Canadian couch potato strategy

Fenix_84 · #3 03-05-2016, 12:23 PM

For beginners just pick up an index. You will already be ahead of 80%-90% of the mutual funds out there.

Etownguy · #4 03-05-2016, 03:24 PM

Quote:

Originally Posted by Canehdianman

Google the Canadian couch potato strategy

This is my go to as well. Takes out the guesswork and emotion. Just make regular contributions and purchase when you have the money. Rebalance as required.

No muss, no fuss.

I_forget · #5 03-05-2016, 06:15 PM

If you think oil is going to rebound you want the ETF hou.to Horizonsbetapro nymex crude oil bull+ ETF

ESOXangler · #6 03-05-2016, 08:23 PM

Quote:

Originally Posted by I_forget

If you think oil is going to rebound you want the ETF hou.to Horizonsbetapro nymex crude oil bull+ ETF

Alternatively HOD.t if you think oil is going to drop! Keep in mind these are doubles. They're leveraged!

Johnny199r · #7 03-05-2016, 08:44 PM

I own VXC. It's global, with the exception of Canada. Good diversity.

I agree mutual funds have high MER, but I still hold Mawer. Great company. Great value. I hold Mawer balanced fund.

Good luck!

pikergolf · #8 03-05-2016, 09:02 PM

Lots of reading on the Canadian couch potato web site. Gets pretty confusing with so many options, I assumed there would be far fewer options than there are.

skidderman · #9 03-05-2016, 09:26 PM

I would be careful on advice and do lots of research before jumping in. I read a lot of Globe & Mail and Monysense online and try to filter through the B.S. I suspect if you had bought a fund that follows the TSX a yr ago you would now be down 35%. I doubt you want that. In everything I look at I look for long term stability & not big up & down swings. As stated there are low cost mutual funds such as Steadyhand & Mawer where the MER is about 1%. ETF's are cheaper but my understanding could be harder to get out of and I don't have the smarts or the willpower to buy the correct ETF & not second guess myself. Biggest thing is understanding your risk tolerance & time window. That either cuts out the conservative or the high end or will drive you the the center. Hundreds of ways to go and I can personally say when one is on the losing end it isn't fun. I spend hours every week doing research and still find my knowledge is limited. Best of luck sir!!!!!!

Worm · #10 03-06-2016, 03:02 PM

Pikergolf, ZWB has a covered call component (options), which will limit the upside in a rising market but pays more yield. This fund is better if you think the market will go sideways. If you want pure bank exposure ZEB is the ticker.

I agree with the couch potato advice, yes there is lots of reading, but worth it in the long run to figure it out. I did this 5 years ago and realized it isn’t that complicated once you master the fundamentals. To simplify though these are the main ETF funds I focus on:

ZCN, XIC or VCN for Canadian exposure (doesn’t matter which one)
VUN for US exposure
XEF for international exposure
VEE for emerging markets

Add in some fixed income, bond or GIC for stability. Personally I think GIC's are a better deal right not if you get at 2.15% through your discount broker.

Read lots and understand building portfolio’s fist though, need to be comfortable with your equity exposure. Balance and long term thinking is the key.

Mossyoak · #11 03-06-2016, 05:48 PM

Cash

I would be going or keeping my capital in cash right now.

Much better bang for you buck in the near future

I_forget · #12 03-06-2016, 07:24 PM

Quote:

Originally Posted by Mossyoak

Cash

I would be going or keeping my capital in cash right now.

Much better bang for you buck in the near future

You would be missing the current oil rebound. WTI is up $0.60 from Friday's close. $36.55 right now.

bdub · #13 03-06-2016, 07:47 PM

Quote:

Originally Posted by ESOXangler

Alternatively HOD.t if you think oil is going to drop! Keep in mind these are doubles. They're leveraged!

To the OP. Be very careful with these products. Not suitable for the average investor, understand what you are buying here if you decide to play this game. Very easy to loose a pile of capital with these. Read the following article if interested.

http://www.theglobeandmail.com/globe...1596/?page=all

bdub · #14 03-06-2016, 08:02 PM

Quote:

Originally Posted by pikergolf

New to this game, trying to get away from the MER of mutual funds. Unfortunately ETF don't come with advice. Have been looking at this one as the banks took a kicking in early part of the year and I am thinking I can catch the rebound. Thoughts or advice?

http://www.theglobeandmail.com/globe...mmary/?q=ZWB-T

It's probably not a bad option for your Canadian bank exposure. Alternatively you could play the rebound by just picking a couple of the banks and buying the common stock. Thats what I have done and would do again if starting over. Currently a long time holder of Royal and Scotia since the crash. My mom's account holds Scotia and CIBC. Just keep your Canadian bank exposure to a reasonable percentage of your portfolio. Don't go overboard imo. Good luck.