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

Discover the best Canadian ETFs with these 5 tips

Discover the best Canadian ETFs with these 5 tips

The best Canadian ETFs can be a really good addition to your portfolio—if you choose carefully
With the best Canadian ETFs you won’t incur the regular capital gains taxes generated by the yearly distributions most conventional mutual funds pay out to unitholders.

Canadian exchange traded funds are… Read More

ETFs give access to U.S. blue chips

ETFs give access to U.S. blue chips

These ETFs, like mutual funds, track major stock market indexes, but their low management fees set them apart.
These ETFs hold mostly blue-chip stocks that are widely traded on U.S. exchanges. Each ETF mirrors, or tracks, the performance of a major stock market index. That’s different… Read More

Buy these bond ETFs for stable income

Buy these bond ETFs for stable income

These two bond ETFs offer exposure to quality holdings with low-fees, but they’re best left to investors who need stable income and really want to hold bonds.
The Bank of Canada will likely hold interest rates steady for all of 2017. That’s because low prices for… Read More

The best ETF to buy have these key characteristics

The best ETF to buy have these key characteristics

5 ways to know you’re picking the best ETF to buy
One way to profit from rising markets is to buy exchange traded funds (ETFs) that track major stock indexes. ETFs trade on stock exchanges, just like stocks. Prices are quoted in newspaper stock tables and… Read More

5 great tips for ETF investing

5 great tips for ETF investing

You will have better opportunities for success with ETF investing when you follow our tips

In 1990, ETF investing was introduced in Canada. The fund was called Toronto Index Participation Shares, and started trading on the Toronto Stock Exchange (TSX). The shares, which… Read More

These top ETFs offer gold and silver exposure

These top ETFs offer gold and silver exposure

These funds provide access to leading miners without the costs of directly holding gold and silver as investments. 
In 2011, gold shot up to a high of $1,950 U.S. an ounce, and silver reached a peak of $48.58.
Gold prices then fell steadily, dropping to $1,050 an… Read More

How to choose the best investments for children

How to choose the best investments for children

Traditionally, there have been several options for parents and grandparents looking to make investments for children. But here’s how to choose the best investments for children in 2017?
Taking the time to pick the right investments for children and grandchildren is a worthwhile endeavour. If the child is under… Read More

Buying ETFs: Investing in a popular and low-fee innovation

Buying ETFs: Investing in a popular and low-fee innovation

Did you know that buying ETFs with a passive investing strategy can lead to much lower expense ratios?
Traditional ETFs follow the lead of the index sponsor. This passive style keeps turnover very low, and that in turn keeps trading costs for your ETF investment down.
We… Read More

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