HXT VS HXS: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) have transformed the investment landscape, providing investors with a diverse range of options spanning various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: HXT (Horizons S&P/TSX 60 Index ETF) and HXS (Horizons S&P 500® Index ETF). Our exploration will encompass key aspects such as ticker symbols, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methodologies, and exposure.
HXT VS HXS: Overview
HXT and HXS represent two ETFs that cater to different geographical focuses within the equity markets. HXT is dedicated to tracking the performance of the S&P/TSX 60 Index, which comprises 60 of Canada's largest publicly traded companies. On the other hand, HXS aims to replicate the S&P 500® Index, encompassing 500 major U.S. companies. These differing geographic scopes inherently lead to distinct market exposures and risk profiles.
HXT VS HXS: Sectors and Top Holdings
The HXT ETF is primarily concentrated in sectors that dominate the Canadian economy, including financials, energy, and materials. Its top holdings may include major Canadian banks and resource-based companies. Conversely, HXS is focused on the broader sectors of the U.S. market, with technology, healthcare, and consumer discretionary often taking prominent positions. Understanding these sector allocations and top holdings is crucial for investors seeking alignment with specific industry trends and growth prospects.
HXT overlap HXT VS HXS: A Comprehensive Comparison of ETFs
HXT VS HXS: Capitalization and Investment Strategy
HXT's asset under management (AUM) reflects its popularity among Canadian investors looking for exposure to their domestic equity market. Its investment strategy involves full replication, meaning it holds all the constituent stocks of the S&P/TSX 60 Index. HXS, with its focus on the U.S. market, has a considerable AUM as well. Its investment approach, however, involves synthetic replication, utilizing total return swaps to mirror the S&P 500® Index's performance. These differences in capitalization and strategy contribute to varying potential returns and risks.
HXT VS HXS: Tracking Methodology and Exposure
The tracking methodologies employed by HXT and HXS further highlight their unique attributes. HXT's full replication strategy involves holding a portfolio of Canadian equities that mirrors the composition of the S&P/TSX 60 Index. In contrast, HXS employs synthetic replication to track the S&P 500® Index. This involves a contractual agreement with a counterparty to replicate the index's performance using derivative instruments. Understanding the nuances of these tracking methods assists investors in gauging how closely the ETFs match their respective benchmark indices.
Conclusion
HXT and HXS exemplify the diversity and specificity that ETFs bring to the investment landscape. Their distinct geographic focuses, sector allocations, investment strategies, and tracking methodologies offer investors tailored avenues for exposure to Canadian and U.S. equities, respectively. For those seeking to delve deeper into the intricacies of these ETFs, ETF Insider stands as an invaluable resource, providing comprehensive insights into holdings, correlations, overlaps, and much more. With its user-friendly app, investors can make more informed decisions about their investment strategies.
Disclaimer: This article is intended for informational purposes only and does not provide any investment advisory services.
Sources:
Get started