ZCN VS HXS: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) have revolutionized the investment landscape, providing investors with diverse exposure to a wide range of sectors and asset classes. In this article, we will conduct a comprehensive comparison between two prominent ETFs: ZCN (BMO S&P TSX Capped Composite Index ETF) and HXS (Horizons S&P 500® Index ETF). We'll delve into their tickers, full names, issuers, sectors, top holdings, capitalization, strategies, tracking mechanisms, and exposure profiles.
ZCN VS HXS: Overview
ZCN and HXS are distinct ETFs designed to offer exposure to different geographical markets. ZCN focuses on the Canadian equity market, specifically tracking the S&P/TSX Capped Composite Index, which encompasses a wide range of Canadian companies across various sectors. On the other hand, HXS provides exposure to the U.S. equity market by tracking the S&P 500® Index, a benchmark of the largest publicly traded companies in the United States.
ZCN VS HXS: Sectors and Top Holdings
ZCN's holdings span multiple sectors within the Canadian market, including financials, energy, and materials. This diversification aims to capture the broader performance of the Canadian economy. HXS, by tracking the S&P 500® Index, grants investors access to a broad spectrum of sectors within the U.S., including technology, healthcare, and consumer discretionary. Top holdings for ZCN might include Canadian stalwarts like Shopify and the Royal Bank of Canada, while HXS could feature tech giants such as Apple and Microsoft.
ZCN overlap ZCN VS HXS: A Comprehensive Comparison of ETFs
ZCN VS HXS: Capitalization and Strategy
ZCN's asset under management (AUM) reflects its popularity among investors seeking exposure to the Canadian equity market. Its strategy involves replicating the performance of the S&P/TSX Capped Composite Index. In contrast, HXS employs a unique strategy involving total return swaps to replicate the performance of the S&P 500® Index, while also mitigating foreign withholding taxes for Canadian investors.
ZCN VS HXS: Tracking and Exposure
ZCN and HXS differ in terms of their tracking mechanisms and geographic focus. ZCN tracks the performance of its underlying index by investing in a portfolio of Canadian securities, closely mimicking the index's returns. HXS employs total return swaps to replicate the performance of the S&P 500® Index without directly holding its constituents. This approach can have implications for tax efficiency and tracking accuracy.
Conclusion
ZCN and HXS are two ETFs that provide distinct avenues for investors seeking exposure to different markets. ZCN caters to those interested in the Canadian equity market's performance, while HXS offers a route to tap into the potential of the U.S. stock market. For investors seeking more in-depth insights into holdings, correlations, overlaps, and other valuable information, ETF Insider serves as an invaluable tool. This user-friendly app empowers investors with comprehensive details about various financial instruments, aiding them in making informed investment decisions.
Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.
Sources:
BMO: ZCN Overview. (https://www.bmo.com/gam/ca/advisors/products/etfs#fundUrl=%2FfundProfile%2FZCN%23%2F)
Horizons ETFs: HXS Overview. (https://www.horizonsetfs.com/etf/HXS)
S&P Dow Jones Indices: S&P/TSX Capped Composite Index. (https://www.spglobal.com/spdji/en/indices/equity/sp-tsx-composite-index/#overview)
S&P Dow Jones Indices: S&P 500® Index. (https://www.spglobal.com/spdji/en/indices/equity/sp-500/#overview)
ZCN ETF issuer
ZCN ETF official page