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

ETFs to invest in: 5 top tips for better ETF investing

ETFs to invest in: 5 top tips for better ETF investing

If you’re looking for ETFs to invest in for the best portfolio returns, then let these five tips guide your search.

Here are five tips to use when considering ETFs to invest in.

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

The best ETFs to invest in practice “passive management”

Traditional ETFs are “passive”… Read More

When to buy an ETF for maximum return

When to buy an ETF for maximum return

To determine when to buy an ETF, some investors use technical analysis and other tools. But you need to dig deeper.
Investors often wonder: what is a good entry point when purchasing a stock or an ETF?

The first question before asking when to buy an ETF… Read More

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.

Maximize your profits by reading this FREE Special Report,
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