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.

Maximize your profits by reading this FREE Special Report,
Best Canadian ETFs: Canadian ETFs vs Mutual Funds, Canadian Index Funds and More.

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ETFs Post Archives

Two Canadian ETFs hold most of Canada’s best stocks

Two Canadian ETFs hold most of Canada’s best stocks

Today, we look at two Canadian ETFs that hold many of the Canadian stocks we recommend for 2017. iShares S&P/TSX 60 Index ETF and iShares Canada Select Dividend Index ETF respectively mirror subindexes holding the 60 most-heavily trades stocks and 30 of the highest-yielding dividend… Read More

How to choose the best investments for children

How to choose the best investments for children

Traditionally, there have been several options for parents and grandparents looking to make investments for children. But here’s how to choose the best investments for children in 2019.
Taking the time to pick the right investments for children and grandchildren is a worthwhile endeavour. If the child is under… Read More

iShares MSCI Switzerland ETF taps global leaders

iShares MSCI Switzerland ETF taps global leaders

A Member of Pat McKeough’s Inner Circle recently asked for his advice on an ETF that tracks this European nation’s top big-cap and mid-cap stocks.

Switzerland has a stable, export-oriented economy, which regularly ranks among the most competitive in the world. Pat notes that the fund… Read More

Two overseas ETFs tap strong international leaders

Two overseas ETFs tap strong international leaders

We think foreign stocks can safely make up 10% of a conservative investor’s portfolio. One way is through exchange-traded funds (ETFs) with an overseas focus.

The best of those ETFs continue to offer very low management fees and well-diversified, tax-efficient portfolios of high-quality stocks. Here’s a.. Read More

How to find the best dividend ETF

How to find the best dividend ETF

The best dividend ETFs can lead to high yields and add stability to your portfolio
The best dividend ETFs will practice “passive” fund management, in contrast to the “active” management that conventional mutual funds or some new ETFs provide at much higher costs.

As a result of… Read More

Only one of these two Asian ETFs is a buy right now

Only one of these two Asian ETFs is a buy right now

We believe conservative investors can have as much as 10% of their portfolios in foreign stocks. Purchasing exchange-traded funds (ETFs) with an overseas focus is an effective way to do so.

The best of these funds offer low management fees and well-diversified, tax-efficient portfolios of high-quality… Read More