Thank you to Beimo ETFs for sponsoring this video. What is going on you guys and welcome back to the channel. We have an exciting new batch of ETFs to cover today. Beimo has officially brought Spider Select Sector Index ETFs to Canada. Now, for those not familiar, the underlying ETFs that the BIMO Spider Select Sector Index ETFs invest in are manufactured by SSGA, State Street Global Advisors, one of the largest ETF providers in the US. and some of their popular ETFs are tracking the 11 sectors as categorized by GIX. These will of course include things like consumer services, consumer discretionary, consumer staples, tech, etc., etc. Now, until now, there hasn't been a Canadian product to get you this exposure. Well, introducing the Beimo Spider select sector index ETFs. These are available for trading in Canadian dollars, meaning you eliminate the need to take your Canadian dollars, convert them into US dollars, minimizing your conversion costs. You can mitigate tax friction as these are Canadian listed ETFs that trade on a Canadian exchange. As you may have expected, you have both hedged and unhedged options available. But of course, regardless of what you choose, these various ETFs are getting you exposure via their underlyings to the S&P 500 sectors. Now, why is this fund launch so exciting and how could these be used? Let's talk about this because I want you to keep in mind. If you're an S&P 500 investor, your sector allocation and exposure is what I'm going to call static. Now, by static, I don't mean that your allocations won't change over time. They absolutely will, but static in the sense of you don't get that flexibility. When you're an S&P 500 investor, you are simply tracking or mirroring whatever the S&P 500 is currently exposed to. Now, of course, every investor needs to do their own research and their own due diligence to identify whether these funds are suitable for their own personal strategies, but a couple common ways that I could see the Beimo Spider select sector index ETF being used are as follows. Number one is basic, but it is worth mentioning. It's getting more granular yet diversified individual sector exposure. Picture you're an investor who is not quite comfortable investing in individual stocks. Very fair. But you do want some individual sector exposure without having to go in and pick individual stocks. Well, you could go ahead and select what sector you're after. Let's take healthcare as an example. Well, you'd be getting exposure to companies at the time of filming such as Eli Lillian Co., United Health Group, Johnson and Johnson, Abby, Merc, Abbott Labs, Thermo, Intuitive Surgical, Amgen, Fizer. You're of course getting that exposure while being diversified and essentially playing the field. Number two, you could consider skewing or overweing certain sectors as an S&P 500 investor. And again, when you purchase a broad S&P 500 index fund, well, you don't have any flexibility on that sector breakdown. They simply track the current breakdown of the S&P. And as of current, that means a high waiting to tech, financials, healthcare, etc. Well, as you come to understand the various characteristics of each sector, some tend to be higher growth potential also comes with higher volatility like a sector like tech. Some tend to be lower volatility. When you think of things like staples, consumer staples, utilities, let's say you're someone who deems you want to increase your utilities exposure beyond what the S&P 500 naturally has. Well, you could look into ticker ZXLU, the Beimo Spider utilities select sector index ETF to increase your overall waiting, giving you additional portfolio customization. Number three, you could also even consider using these ETFs to help place certain moves amongst the economic or business cycle in efforts to generate some alpha for your own portfolio. In fact, I'll share a veryformational graphic here from Beimo that shows what sectors typically tend to perform during certain phases of the economic cycle. For instance, let's take the scenario where you foresee a challenging economic period ahead, possible recession on the horizon. You may deem that you want to cycle your investments into some lower beta, more defensive sectors like consumer staples and utilities, and move a bit out of tech. Here's another example. If interest rates begin to climb, well, historically, the financial sector, like the banks and insurance companies, they're able to generate higher profit margins. You could possibly look to increase your waiting to the sector via an ETF like ZXLF. Now, these ETFs in of themselves, of course, they can't guarantee alpha, but another way of potentially boosting your total returns as an investor is expressing your views on the currency situation and choosing either the hedged or unhedged version of these various products. Of course, if you don't have a view or you want to take a more neutral stance on the dollar, you could go 50/50. You know, 50% hedge, 50% unhedged and essentially take the currency out of the equation altogether. Case in point being is that the flexibility that this suite of ETF provides. It just enables you to do so much more than if you were just simply an S&P 500 investor. Whether that be an easy way to allocate sector rotation in your strategy, play the currency conversion game, etc., etc. And if all of that isn't in compelling enough reasons for you guys, I will share one final chart that I thought has some valuable education to take from. This chart shows the dispersion and frankly the sporadic returns that various sectors have performed from year to year. And you'll note that in any given year, you will have the sectors that outperform and of course you'll have the sectors that lag. For instance, in 2020, we saw tech posting 40% gains while energy lost nearly that same amount. Fast forward to 2022 where we see energy bouncing back as one of the stronger returners with over 50% growth and communication services being the weaker. Keep in mind with the S&P, you're getting a big mix of all of this versus if you choose to take more of an active approach in terms of your sector allocation via these ETFs. Well, you can attempt to capitalize on the sectors that you are most interested in and of course avoiding the sectors that you don't want. Now, as always, let's take a moment and talk about the fees. An important element to understand. Well, what's great about these fees is that they're simple, competitive, and a fair fee structure with all fees being 0.21%. Now, in summary, I personally think this is one of the cooler and more exciting fund launches for Canadian investors that we've seen so far this year. Whether that's enabling you to have greater portfolio customization, there's so many creative ways that an investor could utilize these ETFs when crafting or building their portfolio. Of course, you get to own a Canadian listed and Canadian denominated product that gets you exposure to the S&P 500 sectors. This is a great way for Canadians to get the US exposure without having to convert their dollars. And as mentioned, you do have options available. Whether you want to go hedged or whether you want to go unhedged is totally up to you. As always, I'll include links below this video for you to explore and do your own research and due diligence. But thank you once again to Beimo ETFs for sponsoring this video. Let me know down in the comments section below what you guys think of this new fund launch.