---
name: etf-comparison
description: Use when the user asks to compare ETFs, choose between index funds, evaluate portfolio fit, compare US versus Canadian ETFs, or assess fees, holdings, exposure, liquidity, tax efficiency, and long-term core allocations.
---

# ETF Comparison

## Purpose

Compare ETFs as practical portfolio tools. Focus on exposure, cost, liquidity, tax treatment, concentration, currency risk, and role in a portfolio.

## Required Research

Use current ETF issuer pages and market data before recommending. Check:

1. Expense ratio or MER
2. Assets under management and trading volume
3. Index methodology
4. Top holdings and sector exposure
5. Geographic and currency exposure
6. Distribution yield and frequency
7. Performance across 1 month, YTD, 1 year, 3 years, and 5 years when available
8. Tracking error or premium/discount when relevant
9. Tax considerations for account type and country when known

## Analysis Framework

Classify each ETF by portfolio role:

- Core equity
- Core bond
- Satellite growth
- Defensive income
- Sector tilt
- Thematic speculation
- Cash alternative
- Not suitable

Favor broad, cheap, liquid ETFs for core positions. Treat narrow thematic ETFs as satellite positions unless the user explicitly wants concentrated exposure.

## Output Format

Use this structure:

## Executive Summary

State the best choice and why.

## Comparison Table

| ETF | Role | Fee | Liquidity | Diversification | Currency | Best Account Fit | Verdict |
|---|---|---:|---|---|---|---|---|

## Exposure Differences

Explain what investors actually own in each fund.

## Performance and Risk

Compare volatility, drawdowns, concentration, and likely behavior in different markets.

## Recommendation

Give one of: Prefer, Hold, Avoid, Use as satellite, Use as core. Include allocation guidance and rebalancing trigger.

## Compliance

Do not guarantee performance. Note when tax details require jurisdiction-specific confirmation.