Applying for-each loop to variable that contains result tree fragment

I want to use a variable as the context for a for-each
loop. 

i.e. <xsl:for-each select="$var">

However the content of this variable is dependent on
some conditions, and therefore the body of the
variable is used.

e.g. 
<xsl:variable name="var">
  <xsl:if test="$otherval = '1'">
1</xsl:if>
  <xsl:if test="$otherval = '2'">2</xsl:if>
</xsl:variable
    

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