Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Canada is having inflation issue too. In April, they will raise rate by 50 basis points and likely more throughout the year. So I would wait a good entry point and dollar average in to your target allocation.
Tough to find actual peers, but it would not be too freaky to look at a CANADIAN-market Index fund, I suppose. In other news: a random walk through the park shows me the following:
@Sven FICDX. upside: 120. Downside 86. (On Morningstar, the low-medium-high RISK slide rule is missing. "Insufficient data.") The only peer that Morningstar offers for comparison is Matthews Korea. That's pretty nuts.
EWC = +5.84%. (10 years.). oops, that's annualized. It's +76.45% cumulative. Note: the top two holdings in FICDX and EWC are the same: Royal Bank of Canada and Toronto Dominion Bank. (TD, in the States.) FICDX owns MORE. Combined, they are 20.42% of total portfolio. That actually makes sense to me. As Danielle Park said many years ago: "Canada still primarily sells rocks and trees to the rest of the world." The big exception is the biggest 6 banks, and the biggest FIVE, in particular.
CM, BMO, TD, RY, BNS. They operate pretty much with monopoly power. ...... But remember this: "When the U.S. catches a cold, Canada gets the flu."
Hi Crash, Yeah, I own FICDX. It's something I bought a while back. My reasons for buying.....I saw a piece on Canada's banks---highly rated....better than the U.S. That's one reason. The other is commodities. They've got them. The world needs them. There's my simple reasons, so we'll see how it goes. Also it's my only non-U.S. fund. I like home. Home is where the heart is. Also another fund I own (FARMX) also has 10% in Canada, just saying....
New Canadian budget to add tax burden to banks/insurance companies for 5 years.
Before one gets into a huff about this (taxes)..........during the pandemic, the Canadian gov't. provided back stops for these institutions.....now is repay time. The article explains the circumstances. I haven't a clue as to how this will affect profit performance going forward for the banks/insurance companies.
If you can look past that 25.62% drop in the first quarter of 2020, it’s had a nice run. Generally, commodities performed even worse than the S&P & other major equity indexes during that quarter. Canada? Think lumber, oil, precious metals and stones. Likely, other parts of the economy like banking and retail are heavily / indirectly dependent on the commodities trade.
To explain: A big hit to commodities should ripple through other sectors.
ADDED: “Oil exports account for a larger share of GDP in Canada than they do in any other nation in the rich world, with the exception of Norway or the Gulf Arab monarchies.” https://canadianvisa.org/life-in-canada/economy/structure
"To explain: A big hit to commodities should ripple through other sectors." .....Yes, I can certainly see that. In the same way, TRAMX holds not much oil at all, but it's been rising. Heavy on financials.
Thanks for your post....very informative, bro. Saying that to say this: didn't the U.S. do something to our banks? No different. We helped you so we own you for a time, no? This too shall pass....saying that this is a trade not a long or core position. There is a point at which I will sell before a loss. But again thanks for posting something that was unknown to me. It's why I read your posts, smart guy!......lol
Comments
What other funds have you compared against FICDX for a 10 year buy and hold?
VPADX. Vang. Pacific. (10 years) +88.59%
PRWCX. TRP. +224.02%
MAKOX. +97.51%
PRLAX. -4.98%
PRMSX. +46.66%
IRL. +13.49%
There's a link on this page to a full list of closed-end funds trading in Toronto. But when I click on it, it downloads to my computer rather than just OPENING. That's perfect. THAT way, the list is utterly lost and in the midst of oblivion somewhere.
https://www.tsx.com/listings/listing-with-us/sector-and-product-profiles/closed-end-funds
Single country funds/ETFs can be rewarding and volatile at the same time due to lack of country diversification. Good research topic but be careful.
EWC = +5.84%. (10 years.). oops, that's annualized. It's +76.45% cumulative.
Note: the top two holdings in FICDX and EWC are the same: Royal Bank of Canada and Toronto Dominion Bank. (TD, in the States.) FICDX owns MORE. Combined, they are 20.42% of total portfolio. That actually makes sense to me. As Danielle Park said many years ago: "Canada still primarily sells rocks and trees to the rest of the world." The big exception is the biggest 6 banks, and the biggest FIVE, in particular.
CM, BMO, TD, RY, BNS. They operate pretty much with monopoly power. ...... But remember this: "When the U.S. catches a cold, Canada gets the flu."
Yeah, I own FICDX. It's something I bought a while back. My reasons for buying.....I saw a piece on Canada's banks---highly rated....better than the U.S. That's one reason. The other is commodities. They've got them. The world needs them. There's my simple reasons, so we'll see how it goes. Also it's my only non-U.S. fund. I like home. Home is where the heart is. Also another fund I own (FARMX) also has 10% in Canada, just saying....
God bless
the Pudd
New Canadian budget to add tax burden to banks/insurance companies for 5 years.
Before one gets into a huff about this (taxes)..........during the pandemic, the Canadian gov't. provided back stops for these institutions.....now is repay time. The article explains the circumstances.
I haven't a clue as to how this will affect profit performance going forward for the banks/insurance companies.
To explain: A big hit to commodities should ripple through other sectors.
ADDED: “Oil exports account for a larger share of GDP in Canada than they do in any other nation in the rich world, with the exception of Norway or the Gulf Arab monarchies.”
https://canadianvisa.org/life-in-canada/economy/structure
"To explain: A big hit to commodities should ripple through other sectors."
.....Yes, I can certainly see that. In the same way, TRAMX holds not much oil at all, but it's been rising. Heavy on financials.
Thanks for your post....very informative, bro. Saying that to say this: didn't the U.S. do something to our banks? No different. We helped you so we own you for a time, no? This too shall pass....saying that this is a trade not a long or core position. There is a point at which I will sell before a loss. But again thanks for posting something that was unknown to me. It's why I read your posts, smart guy!......lol
God bless
the Pudd