The main difference between XIC and VCN is that XIC largely replicates the performance of the S&P/TSX Capped Composite Index while VCN seeks to replicate the performance of the FTSE Canada All Cap Domestic Index.
XIC
The iShares Core S&P/TSX Capped Composite Index ETF (XIC) was launched in February 2001 and replicates the performance of the largest Canadian stock index, i.e., the Toronto Stock Exchange (TSX).
Advertised as a long-term core holding, XIC offers exposure to a significant portion of Canadian equity markets within a single security.
XIC is ideal for young and middle-aged investors with a longer time horizon for goals such as retirement and a bullish view of the Canadian economy.
With financial institutions comprising of nearly 30% of the overall exposure, XIC is also beneficial for investors seeking a balance of capital gains growth with strong, reliable dividend yields.
As of June 30, 2024, the ETF had $12.13 billion in assets under management.
Since its inception, the XIC ETF has delivered 7% annualized returns with a 3-year return of 5.92%.
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VCN
The Vanguard FTSE Canada All-Cap Index ETF measures and tracks returns of large-cap, mid-cap and small-cap stocks that are publicly traded in the Canadian market.
Similar to its XIC counterpart, the ETF’s sector exposure is largely weighted towards financials, energy, materials, and industrials.
However the percentages look slightly different as the VCN ETF covers a broader range of equities than the TSX-focused XIC.
As of June 30, 2024, VCN had $6.73 billion in assets under management and delivered 8.22% annualized returns since inception with a 5-year return of 9.31%.
Performance: XIC vs. VCN
XIC Annualized Performance (as of June 30, 2024):
- 3-Year: 5.92%
- 5-Year: 9.26 %
- 10-Year: 6.93%
- Since inception: 7%
VCN Annualized Performance (June 30, 2024):
- 3-Year: 6.20%
- 5-Year: 9.31
- 10-Year: 6.73%
- Since inception: 8.22%
Fees
XIC offers a Management Expense Ratio (MER) of 0.06% which is largely comprised of its 0.05% management fee.
VCN offers a Management Expense Ratio (MER) and management fee of 0.05%.
Holdings
Below are the top holdings within both XIC and VCN:
XIC:
- Royal Bank of Canada (6.47%)
- Toronto Dominion (4.28%)
- Shopify (3.49%)
- Canadian Pacific (3.25%)
- Canadian Natural Resources Ltd. (3.19%)
- Enbridge Inc. (3.17%)
- Canadian National Railway (2.93%)
- Brookfield (2.80%)
- Bank of Montreal (2.63%)
- Constellation Software Inc. (2.58%)
As of July 16, 2024
VCN:
- Royal Bank of Canada (6.82%)
- Toronto-Dominion Bank (4.41%)
- Shopify Inc. (3.62%)
- Enbridge Inc. (3.43%)
- Canadian Natural Resources Ltd. (3.40%)
- Canadian Pacific. (3.34%)
- Canadian National Railway Co. (3.02%)
- Brookfield (2.81%)
- Bank of Montreal (2.77%)
- Constellation Software Inc. (2.60%)
As of June 30, 2024
