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:
Maximize your profits by reading this FREE Special Report,
Best Canadian ETFs: Canadian ETFs vs Mutual Funds, Canadian Index Funds and More.
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
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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
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
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
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
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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
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
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
This ETF’s focus on top tech stocks and its 5.3% dividend yield have appeal, but they come at a cost.
In order to maintain its dividend, the fund must trade securities and place call options, both of which drain its capital. What’s more, the fund’s… Read More
High quality companies and traditional ETFs can serve as simple investment options with lower risk.
Here’s a general rule that forms a key element of the Successful Investor approach to buying stocks: A simple investment is better. The easier an investment is to explain and understand,… Read More
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An abundance of oil and natural gas resources has made Norway one of the wealthiest countries in the world. However, efforts are underway to diversify its economy beyond natural… Read More
The best performing ETFs have low management fees, diversification, and are more tax-efficient than many other investments
We still feel that investors will profit the most with a well-balanced portfolio of high-quality individual stocks, but ETFs can also play a role in a portfolio. Here are… Read More
These ETFs mostly hold high-quality stocks that are widely traded on Canadian exchanges. Each fund mirrors, or tracks, the performance of a major stock market index. That’s different from ETFs focused on narrower indexes or themes such as solar power and biotechnology.
Of course, you pay… Read More
These two blue chip ETFs hold mostly large-capitalization, widely traded stocks on the Canadian exchange. Both mirror, or track, the performance of major stock market indexes as opposed to narrower ones focused on resources or themes, such as solar power or biotech.
Blue chip ETFs… Read More
This ETF’s 6.8% dividend yield looks very appealing, but it conceals several risks for investors.
The fund’s currency hedging only favours investors under certain conditions, and the ETF’s need to buy covered call options can run up brokerage commissions and diminish overall returns.
Turn the key… Read More
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 dividend… Read More
Beware of investment concepts that add unnecessary features, and so increase fees and risk. These “bells & whistles” may seem like attractive enhancements, but they’re usually just thinly veiled marketing campaigns.
Even if they call them by some other name, most successful investors identify “bells… Read More
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The U.S. housing market has largely recovered from the 2008/2009 housing crisis. Still, rising interest rates may eventually slow the speed of future growth. In the near term, however,… Read More
The Bank of Canada raised its benchmark interest rate from 1.00% to 1.25% in January 2018. The Canadian economy is growing and unemployment is low, although annualized inflation eased to 1.7% in January, from 1.9% a year earlier.
We continue to caution against investing in bonds… Read More
Investors are drawn to the best performing ETFs because they have low management fees, adequate diversification, and are more tax-efficient than many other investments
ETFs are unlike other investment innovations because they aim to simplify your investing, rather than complicate it. While there are many to… Read More
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Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
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