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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ETFs Post Archives

Low-cost ETF for exposure to the top Canadian companies

BMO S&P/TSX CAPPED COMPOSITE INDEX ETF $33.69 (Toronto symbol ZCN; TSINetwork ETF Rating: Conservative; Market cap: $9.8 billion) tracks the S&P/TSX Capped Composite Index. The index includes over 200 top-ranked Canadian stocks that represent more than 90% of the Canadian equity market. Individual stock weights are capped… Read More

Fossil fuels are still a key part of energy supply

Global energy demand continues to increase as the world population grows and electricity demand for cooling, vehicles and data centers increases.
Meanwhile, sources of energy supply are changing: while oil and coal based energy will continue to form the backbone of energy supply for the next… Read More

European leaders come with a discount

Europe is home to many high-quality companies that are among the global leaders in their respective fields of operation. Still, as a group, these companies have underperformed their U.S. peers by a wide margin over the past two decades—lacklustre European economic growth and bureaucratic burdens… Read More

New ETFs for Canadian investors

This month, we highlight an actively managed ETF from RBC that invests globally in equities, and a new cryptocurrency ETF from CI Galaxy.
RBC Global Large-Cap Equity ETF $21.84 CBOE symbol RGLE) invests in equities listed on global markets. The ETF launched on April 9, 2025 and charges a.. Read More

Relationships with the U.S. are key for Mexico

Mexico’s ties with the U.S. are very important for the country—and here are two critical aspects of that relationship.
First, Mexico exports over $500 billion worth of goods every year to the U.S. That is more than 80% of the country’s total exports and the equivalent… Read More

Mexico: Much promise, significant challenges

Mexico’s relationship with the U.S. is extremely important for the country’s economy. More than 80% of Mexican exports, including manufactured goods and food, go to the U.S. In addition, 38 million Mexicans who live and work in the U.S. send large amounts of money back… Read More

The outlook for oil and gas remains strong

The long-term push to sharply cut oil and gas use—including through renewable power generation and electric vehicles (EVs)—will continue. But at the same time, it’s clear that there will be a continuingly prominent role for oil and gas for some time. That means top oil… Read More

Pass on this ETF

Tesla Yield Shares Purpose ETF $17.40 (CBOE symbol YTSL) invests in Tesla shares, sells call options against the investment, and employs debt to further boost returns. Foreign currency exposure is hedged back to the Canadian dollar.
The ETF launched in December 2022, holds $152.4 million of assets, and charges… Read More

Buy these ETFs for European exposure

Over the past decade, European companies have lagged well behind the top U.S. companies. Stagnating economies and a heavy regulatory burden on companies contributed to the weak stock market returns. But, Europe remains home to a number of global leaders in their respective fields—with many… Read More

Buy 4 of these global ETFs, hold 2

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 charge you very low management fees yet offer you well-diversified, tax-efficient portfolios of high-quality stocks.
Here’s… Read More

Japan sets you up for gains

ISHARES MSCI JAPAN INDEX FUND, $71.43, is a buy. The ETF (New York symbol EWJ; buy or sell through brokers; us.ishares.com) aims to mirror the return of the Morgan Stanley Capital International Japan Index.
Top holdings are Toyota, 4.8%; Sony Corp., 3.9%; Mitsubishi UFJ Financial, 3.7%; Hitachi (conglomerate), 3.1%; Nintendo… Read More

Profit from our five sectors approach

The key point about profiting from the five sectors is that investors should spread their investments out across most if not all of them.
Note that there are a number of difficulties with recommending a model portfolio for all investors. The main one is that each… Read More

Here are new ETFs for Canadian investors

This month we highlight a diversified ETF launched by the Toronto-based alternative asset manager, Arrow Capital Management—and managed by WaveFront Global Asset Management.
The second fund is a short-dated U.S. dollar money market ETF launched by TD Asset Management.
WaveFront All-Weather Alternative Fund $20.39 (Toronto symbol WAAV) invests in a.. Read More

Germany has a solid outlook despite challenges

Germany was the only country in the Group of Seven (G7) wealthy nations to suffer an economic contraction in both 2023 and 2024. One reason was the country’s “debt brake.” In place since 2009, it sharply limits the government’s ability to borrow and run economy-stimulating… Read More

Pass on this ETF

ARK Genomic Revolution ETF $20.56 (CBOE symbol ARKG) invests globally in companies it expects to benefit from the development of products and services meant to improve the quality of life. Those firms are involved in molecular diagnostics, gene therapy, targeted therapeutics, agricultural biology, and stem cells.
The ETF launched in… Read More

Five ETFs for the five main sectors

A key rule of our three-part Successful Investor strategy is to spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities).

This has two main benefits: a) It keeps you from… Read More