Gain Broad Canadian Exposure With These 2 ETFs

The Exchange Traded Fund (ETF) space is an excellent one to be in for passive investors looking for a broad diversified exposure to a basket of companies and are looking to earn a reasonable 6% or 7% each and every year.

For Canadian investors who want exposure to the Toronto Stock Exchange (TSX), I've got two ETF options for you.

Perhaps the most commonly used index ETF tracking the TSX is the iShares TSX Composite Index ETF (TSX:XIC), a broad based ETF tracking all of the companies listed in Toronto. For those seeking exposure to solely large cap blue-chip Canadian companies, the iShares TSX 60 index ETF (TSX:XIU) may be a better fit. This ETF holds only the largest Canadian companies on the TSX Composite Index.

Either option provides excellent low-cost broad exposure to the Canadian economy. Investors who believe the Canadian economy can and will rebound from the global recession, which seems to creep closer each and every day, in better shape than other G20 countries, should indeed consider either option on the way down,

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Canadian investors ought to remember that home bias can be an issue and too much exposure to one market can lead to under diversification within a portfolio, so make sure to include some global exposure in addition to the XIC and/or XIU ETFs.

Invest wisely, my friends.