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.

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Best Canadian ETFs: Canadian ETFs vs Mutual Funds, Canadian Index Funds and More.

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ETFs Post Archives

Invesco Cleantech ETF’s a buy for clean tech and sustainable investors

Invesco Cleantech ETF’s a buy for clean tech and sustainable investors

Sustainable investments continue to gain popularity with a fund that invests based on a company’s environmental impact, social behavior, and corporate governance.

This fund features firms engaged in renewable energy generation and infrastructure, low carbon emissions and other environmentally friendly businesses.

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Best Canadian ETFs: Canadian ETFs vs Mutual Funds, Canadian Index Funds and More.

INVESCO CLEANTECH ETF (New York symbol… Read More

ETF Stocks: Precious metal ETFs to hold

ETF Stocks: Precious metal ETFs to hold

Precious metal ETFs have largely centred on gold stocks. While we continue to see the outlook for that precious metal as uncertain, for aggressive investors who want to hold precious metal ETFs, we have two of them below.

 In 2011, precious metal ETFS shot up along… Read More

Global X MSCI Greece ETF hands investors a 44.4% gain

Global X MSCI Greece ETF hands investors a 44.4% gain

As this historic European economy continues to emerge from a deep crisis exacerbated by austerity measures.

Although high government debt, non-performing loans, and high unemployment remain challenges, this country’s stock market is now a global leader and this ETF’s gains this year make it a.. Read More

Corporate-Class Mutual Funds: What to Know Before Investing

Corporate-Class Mutual Funds: What to Know Before Investing

Corporate-class mutual funds let you switch between funds without having to pay capital gains taxes right away. But there are reasons why regular mutual funds, as well as ETFs, make better investments
Corporate class, or “tax-advantaged,” mutual funds are classes of funds that let you switch… Read More

A 4.2% yield makes iShares MSCI Italy ETF a buy

A 4.2% yield makes iShares MSCI Italy ETF a buy

The ETF holds 24 stocks and offers exposure to the financial, utility, energy, consumer cyclical, industrial, and telecommunications sectors.

The country’s political volatility and high debt are at least partially offset by the investment appeal of its top firms.
(more…) (more…)… Read More

iShares Edge MSCI Min Volatility USA ETF and Invesco S&P 500 Low Volatility ETFs offering market-like returns with lower risk

iShares Edge MSCI Min Volatility USA ETF and Invesco S&P 500 Low Volatility ETFs offering market-like returns with lower risk

ETF managers aim to produce portfolios with lower risk than the overall stock market while keeping up with overall gains.

These two ETFs are good examples of applying low-volatility stock-picking strategies without sacrificing return.

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Best Canadian ETFs: Canadian ETFs vs Mutual Funds, Canadian Index Funds and More.

ISHARES EDGE MSCI MIN VOL USA ETF (New York symbol USMV) provides investors… Read More

How to pick the best Canadian index mutual funds

How to pick the best Canadian index mutual funds

Canadian index mutual funds were among the better financial innovations to come along in the past few decades, but ETFs may well eclipse them in 2020
Canadian index mutual funds are specialized mutual funds that aim to equal the performance of a Canadian market index, such as… Read More