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excerpt: "The largest portion of Horizon’s holdings are the major banks at 39%. This is great news for investors, as Canadian banks were some of the strongest in the world coming out of the financial crisis, and remain so today. These banks are now looking abroad for growth, leaving even more opportunity while they grow on this ETF..."
Canadian big banks. Yessir. I've been saying this forever.
And one would want to attempt to buy this Canadian etf for what reasons?
I-shares, Canada etf, EWC 10 largest holdings contain 5 of the banks noted for the Horizon etf, for a total of 91 holdings; and one may buy EWC with the click of the mouse. I suspect buying Horizon is not so easy, and with possible IRS foreign transaction busy work later.
@Catch22 and @JohnN Yup, true. That's why if I could right now do it, I'd just choose the single stock CM. The Canadian Imperial Bank of Commerce. ("CIBC," colloquially.) You can buy it on NYSE OR TSE. So... buy it domestically. Great dividend on that puppy.
@Crash Same question. Why would one want or need CM as part of a portfolio?
Sidenote: Canada, for the most part did not escape the turmoil of pricing declines during the market melt. CM, from a high price in May, 2008 through its low price in March, 2009 found a -62% change.
@Catch22 I'd buy it for dividend. Looking for solid income stream, going forward. I won't argue about share price, back then. But generally, what I've learned is that in Canada, they did not suffer the Real Estate bubble and Financial Crash that we did, Stateside. And a big piece of why they didn't is because Canadian banks are so highly regulated. They did not have a Phil Gramm and his fellow idiots repealing a Glass Steagal wall between retail and investment banking. And all the other contributing factors that made the US Crash so much more extreme. ...My friend in Canada hates the way all the big Canadian banks treat customers. But investors can these days do pretty well. ... M* offers info and statistics which are often not the most accurate, but at Morningstar, CM stands today at an -18% discount to actual value.
The way Morningstar phrases these factors: "The Canadian banks are also more geographically diverse on average than, for example, most U.S. regional banks, which are often concentrated within states or local economies. This diversifies credit risk, lowering the overall risk for each individual bank. Canada’s system of higher taxes, more social safety nets, and undoubtedly other complex factors have also led to a more robust and stable middle class that contributes to economic and political stability, further reducing systemic risk." David
Comments
Canadian big banks. Yessir. I've been saying this forever.
And one would want to attempt to buy this Canadian etf for what reasons?
I-shares, Canada etf, EWC 10 largest holdings contain 5 of the banks noted for the Horizon etf, for a total of 91 holdings; and one may buy EWC with the click of the mouse.
I suspect buying Horizon is not so easy, and with possible IRS foreign transaction busy work later.
Same question. Why would one want or need CM as part of a portfolio?
Sidenote: Canada, for the most part did not escape the turmoil of pricing declines during the market melt. CM, from a high price in May, 2008 through its low price in March, 2009 found a -62% change.
"The Canadian banks are also more geographically diverse on average than, for example, most U.S. regional banks, which are often concentrated within states or local economies. This diversifies credit risk, lowering the overall risk for each individual bank. Canada’s system of higher taxes, more social safety nets, and undoubtedly other complex factors have also led to a more robust and stable middle class that contributes to economic and political stability, further reducing systemic risk."
David