Thursday, October 10, 2013

The overlooked TSX Industrials:

The problem with some of the TSX sub indices is they have no investable investment product (ETF) replicating the sector. Examples would be TSX Health Care, TSX Consumer Discretionary and the TSX Telecom sector. Of course the problem is the ETF manufactures are reluctant to build an ETF around a thin sector such as the TSX Health Care group.

Here is the problem – I believe the TSX Industrial Index just printed today a new 52-week high and an all-time high – and thanks to the TSX web site there is no data on this. Yahoo Finance has some info but you have to do some work to confirm an event that is basically ignored by the business media AND the TSX web site.

Now there is an obscure investment product that allows investors to participate in the TSX Industrials - which by the way is a deep sector with 23 components. That obscure investment product is the TSX listed BMO S&P/TSX Equal Weight Industrials Index ETF (ZIN) which yesterday traded 240 shares.

Wake up investors – this thing is the only thing out there for getting into the Industrials.

Please – no worries about liquidity – the ZIN is an open ended trust and so the market makers are deep on both sides of the net asset value.

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