The Lazy (And Smart) Way To Invest In Global Equities: XAW from iShares
Canadians are feeling more concerned about their retirement plans with each passing year. Are you hoping to save your way to financial freedom and security? Looking to make money from stock markets around the globe…even if you only have a modest income?
XAW from iShares is a state-of-the-art ETF that could be the perfect vehicle to get you there. You could start growing your wealth now with almost no effort….or money!
Let’s take a walk through this ETF from Blackrock’s iShares. How could it help ordinary Canadians enhance their net worth through savvy investing?
For detailed information visit iShares Core MSCI All Country World ex Canada Index ETF - XAW
Dollar Cost Averaging
How do you start growing a global stock portfolio if you don’t have any money?
With regular and consistent investments from your salary or income. You can start with a modest number - even $100 per month or paycheque is a great beginner step.
Some brokerages in Canada, such as Questrade, offer no-commission trading on ETFs. This means that you can make small purchases, even one share at a time, and not pay any fee for the trade.
For convenience, you can set your account up to buy shares automatically at regular intervals.
You don’t need to have much money in the bank to start making small, regular purchases on each future pay day. Over the years, this could grow and become a life-changing investment.
Global Diversification
XAW invests in major stock indexes all across the world, excluding Canada. The largest component is in the S&P 500 index, containing 500 of the most important publicly traded American companies. As Warren Buffet likes to say, when you buy the S&P 500 index “you’re buying America”.
XAW invests in major indexes across the globe, including Europe, Japan, and Australia. Emerging markets are part of the package as well, featuring South Africa, India, China, and Brazil.
Excludes Canada
As Canadians, we love to invest in our home country. Often, we’re comfortable with our Canadian portfolio, but less certain of how to invest abroad.
XAW allows you to manage your international stock portfolio separately from your domestic holdings. Simply buy or sell to adjust the foreign component of your investment strategy.
Low Fees
You may have heard about Management Expense Ratios, or MERs. This is the percentage of your money that the fund keeps each year as compensation. XAW has a low MER of only 0.22%, so you’re getting diverse global exposure at a bargain basement price. To put that number in context, some mutual funds in Canada charge an MER of 2.2% or higher. That’s a 10x increase in the cost of managing your money! This can add up over time, so low fees are a high priority for investors.
1.85 Billion In Assets
XAW is a major ETF that Canadian investors have chosen to trust. With net assets of over 1.85 billion, XAW is large and liquid. It trades throughout market hours on the Toronto Stock Exchange. There are always sellers and buyers available when you’re ready to trade this popular holding.
Automatic Rebalancing
Let XAW do the heavy lifting for you when it comes to rebalancing your investment portfolio. XAW will adjust the underlying holdings automatically. Let’s say the S&P 500 has a great year and outperforms emerging markets…. XAW will sell some of the S&P 500 and buy more of the emerging markets underlying fund. This will keep your portfolio balanced without requiring any thought or effort. Why do things the hard way when simplicity is so easy?
Is this a fit for the ordinary Canadian investor?
If you’re looking for easy diversification in one place, XAW is worth your consideration. XAW allows ordinary Canadians to prosper from global stock markets. It’s an ideal ETF to begin dollar cost averaging your way to wealth - at any age, and at almost any income level.
Want to learn more? Here’s a quick, easy to read fact sheet: iShares Core MSCI All Country World ex Canada Index ETF - XAW