XIC VS HXT: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) have transformed the investment landscape, offering investors diverse exposure to various sectors and asset classes. In this article, we will conduct an extensive comparison between two prominent ETFs: XIC (iShares Core S&P/TSX Capped Composite Index ETF) and HXT (Horizons S&P/TSX 60 Index ETF). We will delve into their ticker symbols, full names, issuers, sector focus, top holdings, asset under management, investment strategy, tracking methods, and exposure.
XIC VS HXT: Overview
XIC and HXT are both ETFs listed on the Toronto Stock Exchange (TSX) and are associated with the Canadian equity market. However, they have distinct characteristics in terms of their investment objectives and strategies. XIC seeks to replicate the performance of the S&P/TSX Capped Composite Index, which covers a broad range of Canadian stocks. HXT, on the other hand, follows the S&P/TSX 60 Index, which includes 60 large-cap Canadian stocks. Let's explore the differences between these two ETFs in more detail.
XIC VS HXT: Sector Focus and Top Holdings
XIC provides exposure to a wider spectrum of Canadian companies, including both large-cap and mid-cap stocks. Its holdings cover various sectors, such as financials, energy, materials, and more. In contrast, HXT concentrates on the 60 largest and most liquid stocks listed on the TSX, which often results in a higher concentration in sectors like financials and resources. Understanding their sector allocations and top holdings is crucial for investors seeking specific market exposures.
XIC overlap XIC VS HXT: A Comprehensive Comparison of ETFs
XIC VS HXT: Asset Under Management and Investment Strategy
XIC boasts a substantial asset under management, reflecting its popularity among investors aiming to capture the overall Canadian equity market. HXT, as a fund aiming to replicate the S&P/TSX 60 Index, focuses on achieving returns similar to its benchmark index by closely matching its constituent stocks. These ETFs' differing asset under management and investment strategies influence their performance and potential for returns.
XIC VS HXT: Tracking Methods and Exposure
XIC and HXT utilize different tracking methodologies to achieve their objectives. XIC employs a representative sampling strategy, holding a selection of securities from the S&P/TSX Capped Composite Index to closely mimic its performance. HXT, as a total return swap-based ETF, enters into agreements with counterparties to achieve the returns of the S&P/TSX 60 Index. These methods result in distinct tracking performances and exposure experiences for investors.
Conclusion
XIC and HXT are notable ETFs offering diverse approaches to investing in the Canadian equity market. For individuals interested in exploring in-depth details about their holdings, correlations, overlaps, and other insights, ETF Insider presents a powerful tool. This user-friendly app provides comprehensive information about these and other financial instruments, empowering investors to make informed decisions.
Disclaimer: This article does not offer any investment advisory services.
Sources:
XIC ETF issuer
XIC ETF official page