# US ETF for TFSA - HEA or XHU?



## Chica (Jan 19, 2016)

Does anyone have a strong opinion on HEA or XHU for my TFSA? Investing about $12,000. Have about the same amount in an international ETF in my TFSA. My TFSA is fully funded and I want to increase my US exposure. Looking for growth. The dividend in my TFSA is set for DRIP. 

I do have a small amount of HEA in my RRSP, starting last month I'm putting about 10% of my paycheque into RRSP, alternating each pay between 2 ETFs. I have about 20 shares of HEA in there right now.

Originally I tried to buy HEA for my TFSA but I've had no luck. I started trying when it was around $14.90 and now it's up about .60¢. Yesterday I got a high volume alert from Questrade on HEA - 2414 and average daily is 1207 so it's my guess I want to buy more than is available for sell and/or going to a higher bid amount which might explain why I'm able to buy small amounts on my RRSP. XHU shows an average volume of 4106 so I might have better luck buying there. 

Can anyone weigh in on which one I should go after?


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## Jimmy (May 19, 2017)

If you are looking for growth, go w XHU. It returned about 11%/yr in 2016 and pays only about a 2% dividend. 

HEA is more for income as it has 'covered calls' for that purpose. Returned 7% in 2016. paid out most that as a ~ 5.7% as a dividend.


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## Chica (Jan 19, 2016)

Thanks for the breakdown Jimmy. XHU is more what I'm leaning to. Growth is more important now for the next 5 to 10 years and then I'll probably lean more to dividends.


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## Jimmy (May 19, 2017)

Also HEA you lose some of the upside w the covered calls. Generally they are options that pay you $ but you give up some of the upside gains. ie You hold a stock at $10 and sell an option for someone top buy it from you at say $15 and you collect a fee of say $5. But if the stock goes to $20 , you still have to sell at $15 and don't get anymore of the gain.

Better to just hold the stock w out any options like in XHU.


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## james4beach (Nov 15, 2012)

Both HEA and XHU under-performed the plain S&P 500 index, so I'd suggest going with the basic index ETF instead: either ZSP or XUS.

I don't see any reason to invest in either HEA or XHU when you can just buy the S&P 500 index

1 year performance to Nov 30
HEA: 11.6%
XHU: 8.9%
ZSP: 17.5%

3 year performance to Nov 30
HEA: 11.9%
ZSP: 15.0%


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## Chica (Jan 19, 2016)

Thanks James. I'd looked at both of those before but moved on for one reason or another. I'm taking another look at ZSP. Decisions!


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