iShares Core S&P 500 Index ETF (CAD- Hedged) (XSP:CA)
The investment objective of the ETF is to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P 500 Hedged to Canadian Dollars Index, net of expenses. The Index is a market capitalization-weighted index of securities of 500 of the largest U.S. public issuers provided by S&P Dow Jones Indices LLC, hedged to Canadian dollars.
The primary investment strategy of the ETF is to invest in securities of one or more exchange traded funds managed by BlackRock Canada or an affiliate, and/or securities of the constituent issuers included in the Index, such that the resulting portfolio will have characteristics that closely match the characteristics of the Index. The Fund will seek to hedge any resulting foreign currency exposure back to Canadian dollars.
IFM Investment Tip:
This ETF is a good option for those investors wanting to invest outside of Canada and minimize currency risks. This ETF invests to mimic the performance of the 500 largest American companies, which includes the largest multi-national companies in the world. The ETF managers also use currency hedges to help minimize the impact of Canada-U.S. exchange rate changes on the investment's market values. Why is the currency hedge helpful? Well, if the S&P500 index goes up by 10%, but the American dollar declines 10% (against the Cdn $) then you have effectively made 0.00% returns. But if the currency changes are hedged then the weaker American $ will not impact your investment and you would enjoy the 10% increase in the S&P500 index.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- S&P 500 Hedged to Canadian Dollars Index
- Asset Category
- Growth Investments
- Average Duration
- Average Maturity
- Date Established
- May 24, 2001
- Annual Management Fee
- 0.10% Plus 0.01% in Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.00% (2016)
- Management Expense Ratio (MER)
- 0.11% (2016)
- Additional Performance Fee(s)
- Yes - In 2016, the ETF had a yield equal to 1.83% net of Return of Capital (ROC) payments.
- Distribution Dates
- Semi-Annual - at the end of December and June
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes Visit ETF Website for details
- Rebalancing Frequency
- Portfolio Turnover Ratio
- Was 25.32% in 2016, 27.37% in 2015, 21.18% in 2014, 23.71%, 34.37% in 2012, 25.68% in 2011 & 19.64% in 2010.
- Simplified Prospectus
- Last Updated