Outlook is bright for big exporter Germany
LISTEN:
Germany faces a number of challenges—its population is getting older and its workforce will start to shrink from 2020 onwards. In addition, its largest export markets, including the U.S…. Read More
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:
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
- 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.
Read More
ETFs Post Archives
How to Build a Balanced ETF Portfolio for Maximum Gains
To create a balanced ETF portfolio, focus on funds that hold the kind of stocks we recommend
The best exchange-traded funds offer well-diversified, tax-efficient portfolios with exceptionally low management fees.
ETFs, with their relatively low management fees (MERs), have in large part eclipsed interest in mutual funds… Read More
The Best ETF Selection Strategies For Long-Term Portfolio Gains
The best ETF selection strategies will focus on well-diversified funds holding top-quality stocks
In general, we like ETFs better than mutual funds. Their MERs (Management Expense Ratios) are typically much lower than those of mutual funds. That’s because most ETFs take a simpler approach to investing… Read More
Two of these three Canadian ETFs are buys
Here are three ETFs that mostly hold high-quality stocks widely traded on Canadian exchanges. Each fund mirrors the performance of a major stock index or sub-index. That’s different from ETFs focused on narrower indexes or themes such as biotechnology or solar power.
While you do pay… Read More
Two low-fee ETFs make it easy to diversify beyond Canada
Pennsylvania-based Vanguard Group administers overt $5 trillion U.S. in assets spread across 370 mutual funds and ETFs. Canadians are frequently blocked from buying mutual funds registered in the U.S., and some Canadian funds are available in a limited number of provinces. However, Canadians can buy… Read More
China’s potential rewards match its risks
LISTEN:
Massive growth in the export of cheap manufactured goods has driven China’s economic success over the past two decades. However, developed countries—and especially the U.S., given newly imposed tariffs—are… Read More
Mutual fund vs ETF: Which investment is most suitable for your portfolio?
Find out which investment wins the mutual fund vs ETF comparison
When considering a mutual fund vs ETF for your portfolio, it’s important to have a strong understanding of each.
Mutual funds are diversified portfolios of equities and investments in which small investors can take part. They… Read More
One of these Asian ETFs is a buy now
We think conservative investors can hold up to 10% of their portfolios in foreign stocks. One way to do that is by choosing exchange-traded funds (ETFs) with an overseas focus.
The best of those funds continue to offer low management fees and well-diversified, tax-efficient portfolios of… Read More
Six exchange-traded funds (ETFs) that track the major indexes
More and more, exchange-traded funds (ETFs) are finding their way into the portfolios of investors.
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… Read More
Two ETFs aim to rise with marijuana use
We continue to recommend investors be wary of marijuana stocks. But as Canada prepares to legalize recreational cannabis on October 17, 2018, we receive more requests for our analysis on cannabis-related stocks and ETFs.
It remains difficult to say which marijuana growers will prosper. More certain… Read More
The best Canadian dividend ETF investments offer a long-term track-record of paying dividends
Do you want the best Canadian dividend ETF investments to be part of your portfolio? We can teach you how to find them.
We still think investors will profit most—and with the least risk—by buying shares of well-established, dividend-paying stocks with strong business prospects. A Canadian… Read More
ETF zeroes in on “start-up” marijuana growers
Now that the Canadian Senate has passed the bill for the legalization of recreational marijuana, the way is open for a fully legal cannabis market, starting October 17, 2018. That heightens the already-fervent interest in marijuana stocks.
Overall demand for marijuana will continue to expand. But… Read More
Two ETFs offer high-quality bonds at low fees
The Bank of Canada increased its benchmark interest rate in January 2018 from 1.00% to 1.25%. That rate could rise further later this year on stronger economic growth and low unemployment. Inflation has also moved up, although it eased somewhat from 2.3% to 2.2% in… Read More
This Chile ETF goes beyond copper
LISTEN:
Higher copper prices continue to boost economic growth and prosperity for Chile, the largest global producer of the metal. Despite its dependence on copper, the country has a strong… Read More
Two ETFs help investors diversify beyond Canada
Pennsylvania-based Vanguard Group administers about $5 trillion U.S. in assets spread across 388 mutual funds and ETFs. Canadians can buy Vanguard exchange-traded funds listed on stock exchanges.
Generally speaking, Canadians are blocked from buying mutual funds that are registered in the U.S. unless those funds… Read More
TSX ETF investing: 5 tips for successfully picking the right ones
With all the TSX ETF investments available, it’s not too difficult to diversify your portfolio. Here’s how.
There are hundreds of ETF opportunities on the Toronto Stock Exchange (TSX) sponsored by investment managers like BlackRock Inc., BMO Asset Management and Horizons ETFs Management. The best TSX… Read More
These two ETFs hold the leading gold and silver stocks
Gold now trades at $1,313 U.S. an ounce and silver at $16.48. Those prices are well below the 2011 highs for both metals, but still above their 2015 lows.
Gold and silver have gained over the last couple years, helped by fears that growing government deficits… Read More
ETF profits from an emerging Poland
LISTEN:
Poland has a troubled history of foreign occupation and communist government. However, the country moved away from that political system in 1990, joined NATO in 1999 and was accepted… Read More
Two international ETFs offer strong opportunities for diversification
We believe all Canadian investors should have 20% to 30% of their portfolios in U.S. stocks. However, you can also diversify by adding foreign ETFs in reasonable quantities, as much as 10% of your holdings as a conservative investor.
The best ETFs continue to offer… Read More
Selecting the best Canadian funds for your portfolio
The best Canadian funds are ETFs or specialized mutual funds that aim to equal the performance of a Canadian market index.
Canadian funds, specifically, index funds, are among the better financial innovations to come along in the past few decades.
The best Canadian funds do show better long-run… Read More
