XIC VS HXS: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) have transformed the investment landscape, providing investors with diversified exposure across various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent ETFs: XIC (iShares Core S&P/TSX Capped Composite Index ETF) and HXS (Horizons S&P 500® Index ETF). We'll delve into key aspects such as ticker symbols, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure profiles.
XIC VS HXS: Overview
XIC and HXS represent two different investment opportunities within the ETF universe. XIC focuses on tracking the performance of the S&P/TSX Capped Composite Index, offering exposure to a wide range of Canadian companies. On the other hand, HXS aims to replicate the S&P 500® Index, providing investors with exposure to the U.S. large-cap equity market. This fundamental distinction in regional focus leads to varying risk and return characteristics that we'll explore further.
XIC VS HXS: Sectors and Top Holdings
XIC primarily comprises Canadian equities spanning various sectors, including financials, energy, and materials. The ETF's top holdings feature companies like Shopify, Royal Bank of Canada, and Toronto-Dominion Bank. Conversely, HXS is centered on U.S. companies across diverse sectors such as technology, healthcare, and finance. Notable holdings within HXS include Apple, Microsoft, and Amazon. Analyzing the sectors and top holdings is crucial for investors seeking alignment with their investment goals and sector preferences.
XIC overlap XIC VS HXS: A Comprehensive Comparison of ETFs
XIC VS HXS: Capitalization and Investment Strategy
XIC boasts a substantial asset under management (AUM) due to its focus on the Canadian market, reflecting its popularity among investors seeking exposure to the domestic economy. HXS, designed to replicate the S&P 500® Index, taps into the prowess of well-established U.S. companies. The divergence in capitalization and investment approach between XIC and HXS introduces unique risk-return trade-offs that potential investors should carefully assess.
XIC VS HXS: Tracking Methods and Exposure
XIC employs an index replication strategy, aiming to closely follow the performance of the S&P/TSX Capped Composite Index. In contrast, HXS employs a total return swap structure to simulate the returns of the S&P 500® Index, offering indirect exposure to the U.S. market. Understanding the different tracking mechanisms is essential for investors looking to align their portfolios with their preferred index and market exposure.
Conclusion
XIC and HXS present distinct investment avenues for investors looking to diversify their portfolios across Canadian and U.S. equities, respectively. To gain deeper insights into the underlying holdings, correlations, overlaps, and other pertinent information, ETF insider stands as an invaluable resource. With its user-friendly app, investors can access comprehensive details on these ETFs and other financial instruments.
Disclaimer: This article is intended solely for informational purposes and does not provide any investment advisory services.
Sources:
iShares Canada. (n.d.). iShares Core S&P/TSX Capped Composite Index ETF (XIC). Link
Horizons ETFs. (n.d.). Horizons S&P 500® Index ETF (HXS). Link
XIC ETF issuer
XIC ETF official page