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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Each of 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. That sets them apart from ETFs that focus on narrower indexes or themes such as social media or solar power.
Although… Read More
We feel that investors will profit the most from a well-balanced portfolio of high-quality individual stocks, but ETFs can also play a role in a portfolio—especially low-fee funds.
ETF providers are now cutting fees even lower to gain market share. That further boosts their appeal as… Read More
Pat McKeough recently responded to an Inner Circle Member interested in his opinion of an ETF that covers big U.S. tech stocks, uses covered call options to raise income and hedges against movements in the U.S. dollar. Pat explains the complexities of the ETF and… Read More
Here are three ETFs that mostly hold high-quality stocks widely traded on Canadian exchanges. Each fund mirrors the performance of a major stock index or sub-index. That’s different from ETFs focused on narrower indexes or themes such as biotechnology or solar power.
While you do pay… Read More
FIRST ASSET ACTIVE CANADIAN DIVIDEND ETF $9.40 (Toronto symbol FDV; TSINetwork ETF Rating: Aggressive; Market cap: $32.1 million) aims to invest in Canadian dividend payers with the potential for capital gains. Its own dividend yield is a high 4.0%.
The ETF takes an active management approach:… Read More
The ETF “graveyard” is full of well-intentioned funds that were liquidated by their promoters mostly because they failed to reach or maintain a profitable asset size.
During 2017, 104 Canadian ETFs were liquidated— about 16% of all exchange-traded funds in this country.
Liquidations normally follow an orderly… Read More
After a slow start in the early 1990s, the ETF industry gained traction around the turn of this century as more and more investors realized the benefits of making room for those funds in their portfolios.
The global ETF industry has now gathered assets valued at… Read More
This copper producer is well positioned for growth when prices rise thanks in part to its long-term contracts.
AMERIGO RESOURCES (Toronto symbol ARG; www.amerigoresources.com) produces copper concentrates through its 100% owned Minera Valle Central (MVC) operation in Chile.
It processes copper and molybdenum in its operation from… Read More
Pat McKeough gave this reply recently to a Member of the Inner Circle asking about a precious metal ETF with a different approach. U.S. Global GO Gold and Precious Metal Miners ETF uses what it describes as “smart factor methodology” to pick mining companies for its… Read More
The Bank of Canada increased interest rates in July 2017 for the first time since 2010. Its key interest rate rose from 0.50% to 0.75%. The bank’s next opportunity to raise rates is in September 2017. Whether it will do so is uncertain.
The Canadian economy… Read More
Learn everything you need to know in 'The ETF Investor's Handbook' FREE Special Report from The Successful Investor.
ETFs Guide for Canadian Investors: Find the best way to invest in ETFs with low fees, low risk & high satisfaction.
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We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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We do reserve the right, however, to collect and perform statistical analyses of the internet traffic to our website for our internal use. However, information collected does not allow us to identify any individual, and will not collect any personal information of the visitor. Furthermore, we do not sell, rent or loan to any outside parties the information collected and analyzed.
Although you may be able to access some of our websites without being required to register or provide personal information, certain websites and sections of our websites may require registration. In addition, if you choose to contact us to ask a question, we will collect your personal information so that we can respond to your question.
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Does TSI Network Use the Information It Receives?
"Contact Us" and Comment Features: TSI Network encourages visitors to its websites to contact us with questions and comments. Email addresses and other information of persons using these features may be collected in order to facilitate our responses to those inquiries.
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Agents: We employ other companies and individuals to perform functions on our behalf. Examples include fulfilling orders, delivering packages, sending postal mail and email, removing repetitive information from customer lists, analyzing data, providing marketing assistance, processing credit card payments and providing customer service. They have access to personal information needed to perform their functions, but may not use it for other purposes.
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TSI Network may provide personal and other information to a purchaser or successor entity in connection with the sale of TSI Network, a subsidiary or line of business associated with TSI Network, or substantially all of the assets of TSI Network or one of its subsidiaries, affiliates or lines of business.
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Except as provided herein, TSI Network will not sell or rent personal information about you to unaffiliated third parties.
We may disclose personal information you have provided through our websites, for the above purposes, to persons or companies that we retain to carry out and other activities for which you have registered or in which you have otherwise asked to participate. In particular, we may for these purposes transfer information to any country (including the USA and other countries which may not offer the same level of data protection as Canada). We also will disclose personal information if required by law, including compliance with warrants, subpoenas or other legal processes.
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TSI Network does everything possible to prevent unauthorized intrusion to its websites and the alteration, acquisition or misuse of personal information by unauthorized persons. Notably passwords submitted by users of our websites are encrypted using encryption mechanisms. However, TSI Network cautions visitors to its websites that no network, including the Internet, is entirely secure. Accordingly, we cannot be responsible for loss, corruption or unauthorized acquisition of personal information provided to our websites, or for any damages resulting from such loss, corruption or unauthorized acquisition.
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If you wish to request access to, or correction of, your personal information in our custody or control, or find out how we've used or disclosed that information, please make your request in writing to us. We may need to verify your identity before searching for or providing you with personal information. In some circumstances, we may not be able to provide access to your personal information, for example if it contains the personal information of other persons, if it constitutes confidential commercial information, or if it is protected by solicitor-client privilege. If we deny your request for access to, or refuse a request to correct, your personal information, we will advise you of the reasons for this refusal.
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How can you ask questions about our Privacy Policy and access your personal information?
The provision of information by you is entirely voluntary and you have the right not to provide information. Subject to applicable law, you may have the right to receive certain information as to whether or not personal information relating to you is held by TSI Network and to obtain a copy of such information that is sought. You may also have the right to require information, where appropriate, to be erased, blocked or made anonymous or to have data updated or corrected. If you do not wish TSI Network to hold information about you or if you wish to have access to information, modify information, or object to any processing of information or if you have questions please contact us.
What Choices Do I Have?
Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
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