# XIN.TO (iShares MSCI EAFE ETF) vs CIE.TO (Claymore Int Fundamental ETF)



## Xoron (Jun 22, 2010)

I've started looking seriously at the CIE etf for my international exposure in my RRSP. I like the fact that the weightings in the ETF are based on value indicators (it's goal is to track the FTSE RAFI Developed ex US 1000 Index). At heart, I'm a value investor, and I"m hoping that CIE can provide better returns over the long term vs a straight market cap weighted index (such as the MSCI EAFE index) 

More info on Claymore's CIE
http://www3.claymoreinvestments.ca/en/etf/fund/cie

More info on the index it's tracking
http://www.ftse.com/Indices/FTSE_RA...RAFI_Developed_ex_US_1000_Index_Factsheet.pdf 

CIE recently had some significant tracking errors, but that should be cleared up now that it owns most of the 1000 constituents of the index:
(A great article containing CIE and other ETF tracking errors by CanadianCouchPotato: 
http://canadiancouchpotato.com/2011...=tracking-errors-on-us-and-international-etfs)

The only downsides I see to CIE vs XIN are:
- Higher MER for CIE (0.66% for CIE vs 0.51% for XIN) 
- Low Volumes on CIE compared to XIN
- Bid Ask spread is rather large on CIE (up to $0.10) than on XIN (usually less than $0.02)

Any reason I should stick with XIN? Anyone else out there buying CIE for their international exposure?


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## Xoron (Jun 22, 2010)

Timely article from Canadian Couch Potato on fundamental indexing vs market cap weighted indexing. 

http://canadiancouchpotato.com/2011...ampaign=the-promise-of-fundamental-indexing-2


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## gibor365 (Apr 1, 2011)

Xoron said:


> Any reason I should stick with XIN? Anyone else out there buying CIE for their international exposure?


For international exposure I hold VEA, IMHO CAD$ is overvalued now and better to invest into US$. Also, VEA has smaller MER


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## Xoron (Jun 22, 2010)

gibor said:


> For international exposure I hold VEA, IMHO CAD$ is overvalued now and better to invest into US$. Also, VEA has smaller MER


One of the reasons I don't like XIN: It's hedged to the CAD$. 

VEA is a great ETF, no doubt. Vanguard makes some of the cheapest ETFs out there. I hold some VWO for my international emerging markets allocation.

I believe that the fundamental based ETFs can outperform the market capped ETFs, and I'm willing to pay slightly more for it. Only time will tell for sure if it is the right move, but it makes a lot of sense to me. 

The next book on my "to read" list: 
http://www.amazon.ca/gp/product/047...15121&creative=390961&creativeASIN=047027784X


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