# VCN, XIC, or ZCN



## gocanada (Jan 3, 2014)

Hey all,

I'm planning to consolidate my Canadian Small and Large cap holdings (XCS and PXC) into one fund to simplify things a bit and reduce MER fees (XCS and PXC are .6% and .45%). I also don't think the advantages of splitting them out are as great as with US and International holdings.

I'm looking at VCN, XIC, and ZCN. They all seem fairly equivalent to me - all have 0.05% MER and 240+ holdings. Would anyone recommend one over the other and why? Are there other Canadian ETFs one should consider?

Thanks!!


----------



## Moneytoo (Mar 26, 2014)

I picked ZCN because, for me, lowest share price + highest yield = easiest DRIP


----------



## mf4361 (Apr 11, 2015)

I think they are all very much the same and you can't go wrong with either one.

I hold XIC.


----------



## My Own Advisor (Sep 24, 2012)

All three are great. If you like large caps XIU has been a 10-year + stud.


----------



## GPM (Jan 23, 2015)

Yeh, they are all the same. I used vcn because, well..their vanguard, I started my portfolio just before it was part of a canadian couch potatoe portfolio, and I prefer the company as they tend to always be cost leaders and are co-op instead of a regular giant financial company. Just feels right, like using a credit union instead of a bank. From what I understand extra profit goes back into the funds and can potentially lower fees as the funds grow.


----------



## mf4361 (Apr 11, 2015)

One thing worth noting is: XIC is the only [Capped] TSX index fund, meaning composition of a single stock will not exceed 10%. This is created to avoid the "Nortel effect" where in 2000 Nortel alone made up >30% of the TSX. Of course now none of the stock is over 10% so it's the same as the others.

http://www.canadiancapitalist.com/indexing-canadian-equities-through-xiu-xic/


----------



## Moneytoo (Mar 26, 2014)

mf4361 said:


> One thing worth noting is: XIC is the only [Capped] TSX index fund


So is ZCN: BMO S&P/TSX *Capped* Composite Index ETF

"Index weights are capped at 10% of the Index's float-adjusted market capitalization and are reviewed quarterly."


----------



## mf4361 (Apr 11, 2015)

Moneytoo said:


> So is ZCN: BMO S&P/TSX *Capped* Composite Index ETF
> 
> "Index weights are capped at 10% of the Index's float-adjusted market capitalization and are reviewed quarterly."


Yes, my mistake


----------



## GPM (Jan 23, 2015)

Hm. That is very interesting. I knew both the above were capped and assumed that was the same for vanguard. I thought it was common practice for Canadian Indexes. I'm going to have to rethink this now they are all the same price. I wonder how many people realize this considering vcn is part of the Canadian couch potato model portfolios.


----------



## CPA Candidate (Dec 15, 2013)

They'll all go sideways long term so pick the cheapest one.


----------



## supperfly17 (Apr 18, 2012)

CPA Candidate said:


> They'll all go sideways long term so pick the cheapest one.


How do you know?


----------



## londoncalling (Sep 17, 2011)

crystal ball said so. :highly_amused:


----------

