In principle, I see no reason why you couldn't use Horizon product for a four-fund strategy. A three-fund strategy would be problematic, however, in that no one of the Horizon products you list covers a universe comparable to XAW.BoomBoom99 wrote: ↑08 Dec 2017 12:45Ockham,
Your modified hot potato strategy looks interesting. Please keep posting your experience with your experiment.
I've pondered modifying the hot potato spice myself. I'd like to make it more TFSA friendly, ie; employ tax efficient ETFs so withholding taxes are eliminated. Horizons has four low cost ETFs suitable for this strategy. None of them pay distributions. They are listed below:
Horizons S&P/TSX 60 Index ETF (HXT)
Horizons S&P 500 Index ETF (HXS)
Horizons Intl Developed Markets Equity Index ETF (HXDM)
Horizons CDN Select Universe Bond ETF (HBB)
I'm interested in your thoughts on using these ETFs in the modified strategy.
I use BlackRock because (i) its funds have a reasonable daily trading volume (this limits bid-ask spread headache) and (ii) it's very good in updating its funds' performance numbers. The numbers are usually available by mid-morning on the first of the month for the year ended on the last of the immediately preceding month. I don't know how Horizon compares.
The other issue with Horizon, as I understand, is that it charges a swap fee in addition to its management fee. The swap fee may negate much of the hoped for tax advantage of the product. But I say this not really being familiar with Horizon and not having ever held any of its product.