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On BlackRock's XIN page under Key Facts it says the number of holdings as 1. Looking at the top 10 holdings shows EFA as the number 1 holding with a 101% weighting. How is it possible to hold over 100%? And why is there only 1 holding?

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EFA must be bought and sold in US dollars.

XIN allows people to buy and sell EFA in Canadian dollars without exposing their investment to unpredictable swings in the USD/CAD ratio. This is what's known as a currency-hedged instrument.

Now, why the chart sums up to over 100% is anyone's guess. Presumably it's the result of a couple hundred rounding errors from all the components. If you view their most recent report, it also sums up to over 100%, but at least the EFA component is (sensibly) under 100%.

P.S. I'm not seeing where it says there's only one holding. There's the primary holding, plus over 100 other cash holdings to effect the currency-hedging.

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  • I guess the first part makes sense. FYI the only one holding is shown as the last line in the Key Facts area on their most recent report. – skube Sep 28 '16 at 22:37
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On BlackRock's XIN page under Key Facts it says the number of holdings as 1. Looking at the top 10 holdings shows EFA as the number 1 holding with a 101% weighting.

XIN is "iShares MSCI EAFE Index ETF (CAD-Hedged)", so it takes the underlying component and hedges it to CAD. The underlying component is an ETF itself, EFA, so they only need to hold that one component (since that is the MSCI EAFE Index ETF).

How is it possible to hold over 100%?

Take a look at the full list of holdings. While EFA is the only underlying security (e.g. ETF, Stock, Bond, et.c), the remaining holdings (looks to be 133 remaining holdings) are cash positions. Some of those positions are negative for hedge purposes. Because of this, the total value of the portfolio is less than the position of EFA itself (since total value is EFA plus a bunch of negative entries); because the total value is less than EFA itself, EFA has a > 100% weighting.

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