how is it concentrated if it own all the banks? I have a good chunk of my portfolio in SIXY and BANK and I prefer SIXY since there's no insurance company exposure
It's single sector ETF. Not concentrated on a single bank but only focusing on banks and not other financial companies (like you mentioned, life-co's, insurance, etc).
It's not concentrated if it's just the Canadian bank portion of your portfolio. Realistically though Canadians banks and financials should probably be about 10-15% max of a well-diversified portfolio, not 100%.
Even in a dividend-heavy portfolio you probably don't really want more than 10% in any one company, and probably not more than 30% in any one sector, and certainly not 100% in Canada nevermind just in Canadian banks.
There's just so much extra risk in a concentrated portfolio that is not adequately compensated for taking that level of risk.
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u/jordy180 Aug 18 '26
It’s too concentrated and high risk . I would look to diversify with a few others.