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Stock impact report

2 Things About XQQ That's An Absolute Deal Breaker [Yahoo! Finance Canada]

Invesco Ltd (IVZ) 
Last invesco ltd earnings: 4/23 06:55 am Check Earnings Report
One mistake newer Canadian ETF investors often make is defaulting to the biggest ETFs by assets under management from large providers. Size alone does not guarantee efficiency. A good example is the iShares NASDAQ 100 Index ETF Hedged to CAD TSX:XQQ ). It launched in May 2011, has about $4.3 billion in assets, and is widely held. Despite that, it is not my preferred way to own the NASDAQ 100, for two reasons. First, the cost. XQQ's management expense ratio of 0.39% used to be competitive. Today, it is expensive relative to newer alternatives that offer the same exposure for much less. Fees compound negatively over time, especially for growth-heavy ETFs with modest yields. Second, tracking error. Over the past 10 years, XQQ has delivered an annualized return of about 17.8%, compared with roughly 18.4% for the NASDAQ 100 itself. A big reason for that gap is currency hedging. While hedging can reduce short-term volatility, it tends to create a long-term drag that shows up in relat Show less Read more
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