Exchange Traded Funds
Exchange-traded funds (ETFs) are index funds that can be traded as a single equity. They sometimes aim to achieve the same return as a stock index.
Index funds are mutual funds that invest so as to equal the performance of a market index, such as the S&P/TSE 60 Index. Exchange-traded funds (ETFs) hold baskets of stocks that represent stock indexes. They are similar to open-ended index funds in that they trade at net asset value.
Owing to their lower fees, both types generally show better long-term performance than about two-thirds of actively managed mutual funds with long-term track records.
Like stocks, exchange-traded funds (ETFs) trade on stock exchanges, and their prices are quoted daily in newspaper stock tables. Although the investor pays brokerage commissions to buy and sell them, these are offset by lower management fees.
Most index funds add or remove shares only when the underlying index changes. This low turnover is more tax efficient for investors, who don't incur the regular capital gains taxes from annual distributions made by conventional mutual funds.
Chinese stocks are up over 30% since September 2011. That’s largely because investors believe that a global recovery will raise China’s exports and improve its domestic economy. As well, the country’s inflation rate is easing. That gives it more options to boost growth, including cutting interest rates.
Here are two Chinese exchange traded funds (ETFs) that we cover in Canadian Wealth …read more »
You may find that exchange-traded funds (ETFs) have a place in your portfolio. Unlike many other financial innovations, they don’t load you up with heavy management fees or tie you down with high redemption charges if you decide to withdraw. Instead, they give you a low-cost, flexible, convenient alternative to mutual funds.
They have another advantage. Since shares are only …read more »
Exchange traded funds (ETFs) may have a place in your portfolio. That’s because, unlike many other financial innovations, they don’t load you up with heavy management fees or tie you down with high redemption charges if you decide to get out of them. Instead, they give you a low-cost, flexible, convenient alternative to mutual funds.
ETFs trade on stock exchanges, just …read more »
Pennsylvania-based Vanguard Group is one of the world’s largest investment-management companies. The group manages over $1.6 trillion U.S. in 170 mutual funds.
Vanguard, which went into business in 1975, offers low-fee index mutual funds. Generally speaking, Canadians can’t buy units of mutual funds that are registered in the U.S., because they aren’t registered with provincial securities commissions. For that matter, some …read more »
Chinese stocks are down roughly 22% since April 2011. That’s largely because investors fear that weak growth and high debt levels in Europe and the U.S. will slow China’s export-driven economy.
However, the long-term outlook for China, and Chinese stocks, is bright. One of the best ways for investors to tap into that growth is through low-fee exchange-traded funds (ETFs).
Here are …read more »
In September, gold hit an all-time high of $1,900.30 U.S. an ounce. It now trades at around $1,750.30 U.S. Silver reached an all-time high in April, when it hit $49.76 U.S. an ounce. It has since pulled back to today’s price of $33.07 U.S.
Gold and silver could well regain their highs and move up even further over the longer term, …read more »
GLOBAL X COPPER MINERS ETF $14.14 (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) tracks the Solactive Global Copper Miners Index, which includes between 20 and 40 international companies that mine, refine or explore for copper. Germany-based Structured Solutions AG created this index.
Canadian-based companies make up 41.2% of the fund’s holdings. It also includes companies based in the …read more »
Exchange-traded funds (ETFs) offer very low management fees. As well, the best ETFs offer well-diversified, tax-efficient portfolios of high-quality stocks.
However, the quality of ETFs varies widely. All too many exist to tap into popular, but risky, themes and fads. So you need to be highly selective with your ETF holdings.
Here are six foreign ETFs we like:
ISHARES MSCI JAPAN INDEX FUND …read more »
POWERSHARES QQQ ETF $53.53 (Nasdaq symbol QQQQ; buy or sell through brokers; www.invescopowershares.com), formerly called Nasdaq 100 Trust Shares, holds the stocks that represent the Nasdaq 100 Index. That index is made up of the 100 largest shares on the Nasdaq exchange, based on market cap.
The Nasdaq 100 Index contains shares of companies in a number of major industries, including …read more »
SPDR DOW JONES INDUSTRIAL AVERAGE ETF $109.28 (New York symbol DIA; buy or sell through brokers; www.spdrs.com) holds the 30 stocks that make up the Dow Jones Industrial Average.
The fund’s top holdings are IBM, ExxonMobil, Chevron Corp., 3M, Johnson & Johnson, McDonald’s Corp., Coca-Cola Co., Caterpillar Inc., United Technologies and Procter & Gamble. The fund’s expenses are about 0.18% of …read more »
