Canadian ETFs (exchange traded funds) are set up to mirror the performance of a stock market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index.
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 Canadian 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 long-term 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.
Some leading Canadian ETFs include the iShares S&P/TSX 60 Index ETF (Toronto symbol XIU; ca.ishares.com). This ETF is a good low-fee way to buy the top stocks on the TSX. The units are made up of stocks that represent the S&P/TSX 60 Index, which consists of the 60 largest, most heavily traded stocks on the exchange. Expenses are just 0.17% of assets, and it yields 2.7%.
A second is the iShares Canadian Select Dividend Index ETF (Toronto symbol XDV; ca.ishares.com). This ETF holds 30 of the highest-yielding Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of the ETF’s assets. The fund’s MER is 0.55%, and it yields 4.9%.
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Exchange-traded funds (“ETFs”) have taken the investment world by storm.
In Canada, ETF assets under management have grown by 150% over the past five years, from $77 billion to $192 billion. At the same time, the number of ETFs has doubled. Robust growth was also evident… Read More
ETFs remain popular investment vehicles for investors. In the U.S., total net inflows into ETFs amounted to $197 billion (for the year to the end of September). This was about the same as 2018, which saw record inflows. Canadian ETFs attracted net new money of… Read More
Consider these criteria to make the top picks when you choose investments from a Canadian ETF list
In 1990, Toronto Index Participation Shares began trading on the Toronto exchange (then called the TSE). The fund, which tracked the TSE 35 blue chip index and later the… 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
Inflows into the ETF universe remain strong. So far this year, Canadian ETFs have attracted net inflows (that is inflows minus outflows) of $10.8 billion. That represents a 9% increase over the same period last year.
In the U.S., net inflows amounted to $68.1 billion through… Read More
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News on cannabis stocks and on developments in the industry haven’t let up in today’s volatile markets. Here are this week’s stories that we believe will mean most to you as a Canadian investor.
1. Lineups circling the block greeted the opening of… Read More
Canadian-listed exchange-traded funds continue to attract assets previously invested in mutual funds. By the end of 2018, Canadian ETFs had assets under management of $157 billion, or 6.6% more than a year earlier. The value of ETF assets has also doubled over the past 3.. Read More
In volatile markets, high-quality stocks typically hold up better than most, and are often first to recover when markets improve.
These three ETFs hold mostly high-quality stocks traded on Canadian exchanges. Each fund mirrors the performance of a major stock index or sub-index. Although you… Read More
When picking the top Canadian ETFs two of the keys are low management fees and following a “traditional” approach to tracking indexes
The top Canadian ETFs generally practice “passive” fund management, in contrast to the “active” management that conventional mutual funds provide at much higher costs… Read More
We recommend that Canadian investors have as much as 20% to 30% of their portfolios in U.S. stocks in order to improve the diversification and growth potential of their investments. One convenient way to achieve this is through low-fee ETFs.
The three ETFs below mainly hold… Read More
Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' FREE Special Report from The Successful Investor.
How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger.
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