VCN -Canadian Equity vs ZEB

Objective

My idea of keeping VCN in the portfolio is to have a broad sector of the Canadian Stock market, but I also have ZEB which is the Canadian banks.

One would think that there may be a risk exposure in that if I also invest in ZEB because they are major players in the Canadian stock market. To see if this is the case, let's compare them in Yahoo Finance...

Key dates to check for in VCN are in red above. If both charts move on the smae dates in the same direction...

It would show that there is a clear risk of not being diversified enough. When VCN dropped in price, so did ZEB.

This is a summary of ZEB

This is a summary of VCN'

Notice that ZEB is a much LARGER ETF Fund --over 3 times larger than VCN. The P/E is also lower (12 vs 18). The average volume traded is also 80 times more for ZEB, so it may be difficult to sell VCN.

If I had to choose between the two, I'd pick ZEB. I should therefor sell my stake in VCN when I can.


Vanguard FTSE Canada All Cap Index ETF seeks to track, to the extent reasonably possible and before fees and expenses, the performance of a broad Canadian equity index that measures the investment return of large-, mid- and small-capitalization, publicly traded securities in the Canadian market. 

Currently, this Vanguard ETF seeks to track the FTSE Canada All Cap Index (or any successor thereto). It invests primarily in large-, mid- and small-capitalization Canadian stocks.

Top 10 holdings
As of close 31-08-2014
Rank	Holdings
1	Royal Bank of Canada
2	Toronto-Dominion Bank
3	Bank of Nova Scotia
4	Suncor Energy Inc.
5	Canadian National Railway Co.
6	Bank of Montreal
7	Canadian Natural Resources Ltd.
8	Enbridge Inc.
9	Canadian Imperial Bank of Commerce/Canada
10	TransCanada Corp.
Top 10 approximately equals 36.8% of net assets