This ETF Gives You an Easy Way to Invest in Top Canadian Growth Stocks
Do you want to invest in some of the best Canadian growth stocks but don't know how to decide? You may want to consider investing in the iShares Canadian Growth Index ETF (TSX:XCG). Through this exchange-traded fund (ETF), you'll get exposure to some of the best growth stocks in Canada, including Shopify (TSX:SHOP)(NASDAQ:SHOP), Dollarama (TSX:DOL), and Alimentation Couche-Tard (TSX:ATD). These are all among the ETF's top 10 holdings.
Unlike many other growth-focused ETFs, tech isn't the top sector in this fund. Instead, industrials make up the largest position at 31% of the ETF's total, followed by tech at 21%, and financials at 10%.
There are 35 holdings in this fund which means it isn't as diverse as other ETFs, but that's not necessarily a bad thing. In ETFs that contain thousands of stocks, that amounts to a very small position in the vast majority of stocks. With this ETF, however, most stocks account for at least 1% of the fund's total weight, which means you can benefit more from their growth and rising value more than you would in a larger and much broader ETF.
The fund charges an expense ratio of 0.55%, which is comparable to other funds. It also yields around 0.5%, which isn't a whole lot, but this is an ETF that's primarily going to appeal to growth rather than dividend investors anyway.
Since the start of year, the ETF has risen by more than 6% and over the past five years, it has increased by nearly 60% in value. If you're a growth investor, this is a fund you'll want to consider holding in your portfolio.
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