ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Exchange traded funds trade on stock exchanges, just like stocks. Investors can buy them on margin, or sell them short. The best exchange-traded funds offer well-diversified, tax-efficient portfolios with exceptionally low management ETF fees. They are also very liquid.

Investors use ETFs in a variety of ways, and some investors work only with ETFs and no other type of investment in portfolio creation.

An amazing aspect of ETFs is their diversity. Some investors may create an entire portfolio solely from a few well-diversified ETFs.

ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading.

Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds.

As well, shares are only added or removed when the underlying index changes. As a result of this low turnover, you won’t incur the regular capital gains taxes generated by the yearly distributions most conventional mutual funds pay out to unitholders.

ETFs have a place in every investor’s portfolio, at TSI Network we also recommend using our three-part Successful Investor strategy:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

Maximize your profits by reading this FREE Special Report,
Best Canadian ETFs: Canadian ETFs vs Mutual Funds, Canadian Index Funds and More.

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ETFs Post Archives

The Vanguard FTSE Europe ETF limits political risk

The Vanguard FTSE Europe ETF limits political risk

The political risk associated with European investment appears to be increasing, but the focus of this low-fee ETF may help to reduce that risk.
THE VANGUARD FTSE EUROPE ETF (symbol VGK on New York; www.vanguard.com) holds stocks of companies located in Austria, Belgium, Denmark, Finland,… Read More

Two ETF buys for international exposure

Two ETF buys for international exposure

These two ETFs offer low-fee exposure to top stocks in both Germany and Korea.
ISHARES MSCI SOUTH KOREA INDEX FUND (New York symbol EWY; buy or sell through brokers) aims to track the MSCI Korea Index. The ETF’s top holdings are Samsung Electronics, 24.3%; SK Hynix… Read More

How to find the best dividend ETF

How to find the best dividend ETF

The best dividend ETFs can lead to high yields and add stability to your portfolio
The best dividend ETFs will practice “passive” fund management, in contrast to the “active” management that conventional mutual funds or some new ETFs provide at much higher costs.
As a result of… Read More

ETF focuses on large-cap stocks

ETF focuses on large-cap stocks

The Vanguard FTSE All-World Ex-Canada Index ETF tracks big-cap global companies in both the U.S. and emerging markets, but not Canada.
THE VANGUARD FTSE ALL-WORLD EX-CANADA INDEX ETF, (symbol VXC on Toronto; www.vanguardcanada.ca) aims to track the FTSE Global All Cap ex Canada China A Inclusion… Read More

The Ins and Outs of Investing in Exchange Traded Funds

The Ins and Outs of Investing in Exchange Traded Funds

Discover the best ways you can add ETFs to your portfolio
ETFs are one of the most popular and most benign investing innovations of our time—and the best ETF investments can be great low-fee ways to hold shares in multiple companies with a single investment… Read More

ETFs offer broad access to U.S. blue chips

ETFs offer broad access to U.S. blue chips

These ETFs, like mutual funds, track major stock market indexes, but their low management fees set them apart.

SPDR S&P 500 ETF (New York symbol SPY; buy or sell through brokers; www.spdrs.com) holds the stocks in the S&P 500 Index; they consist of 500… Read More

These Canadian ETFs track major indexes

These Canadian ETFs track major indexes

These ETFs focus on similar Canadian stocks but there is a difference between their fees.
These two Canadian ETFs hold mostly blue-chip stocks that are widely traded on Canadian exchanges. Each ETF mirrors, or tracks, the performance of a major stock market index. That’s different from… Read More

Here’s how to find the best high dividend yield ETFs

Here’s how to find the best high dividend yield ETFs

High dividend yield ETFs can be great additions to a portfolio: here are tips that will help you find the best ones
Here’s a look at high dividend yield ETFs and our advice on finding the best ones for your diversified portfolio.

4 ways to invest in… Read More

3 key ETF Definitions for Investors

3 key ETF Definitions for Investors

Our key ETF definitions will help you better understand ETF investing
The simplicity of investing in ETFs holds a lot of appeal for many investors. We’ve compiled a list of ETF definitions so you can determine if ETFs are right for your portfolio.

What does ETF mean?
ETF… Read More

Currency hedging comes at a cost

Currency hedging comes at a cost

Recent gains by the Canadian dollar have a number of investors looking at hedged ETFs. But the extra costs limit their appeal. 
If you want to buy U.S. stocks and hedge against currency movements, you could buy a hedged ETF.
Hedged ETFs are ETFs sold in Canada… Read More

What are ETFs? A guide to investing in exchange traded funds

What are ETFs? A guide to investing in exchange traded funds

Continue reading to find out answers to these questions: What are ETFs? Are ETFs good investments? Should I make ETFs part of my diversified portfolio?
Have you ever wondered, “what are ETFs?” and how can they impact my investment returns?
Exchange traded funds (ETFs) are set up… Read More

These bond funds offer top-quality holdings

These bond funds offer top-quality holdings

For investors who need stable income and want to hold bonds, these two bond funds offer exposure to quality holdings with low-fees.
The Bank of Canada is unlikely to raise interest rates any time soon. That’s because low prices for oil should continue to offset government… Read More

2 low-fee ways to access U.S. funds

2 low-fee ways to access U.S. funds

These two ETFs offer the same kind of access to U.S. and international companies as U.S. registered mutual funds—but without the high fees.
Pennsylvania-based Vanguard Group is one of the world’s largest investment management companies. In all, it administers almost $3 trillion U.S. across 175… Read More