diversification

What is diversification?


Diversification involves the planned distribution of investments across various securities to minimize the risk exposure to a specific industry or geographic segment. However, the risk of over-diversification exists, in which an investor can at best expect to mirror the market returns, minus any brokerage fees or management expenses.

We believe that Canadian investor education begins with recognizing what you know and what you don’t know, as well as an awareness of the most important qualities to look for in stocks
Emera’s shares hit an all-time high just before the onset of the COVID-19 pandemic and the stock market downturn in March 2020. We feel the stock will regain that peak and move even higher.

That’s partly because the power generator is replacing its coal-fired plants with cleaner-burning natural gas, hydro power and solar....
We still feel that virtually all Canadians should have, say, 20% to 30% of their portfolio in U.S. stocks, or in ETFs holding those stocks. In fact, for some investors, that’s all the foreign exposure their portfolios really need. Still, international markets can add further diversification and provide exposure to some top global leaders.


Here we highlight two ETFs that hold high-quality international stocks—but without U.S....
All of the major global stock markets fell with the initial outbreak of COVID-19. But many top markets have since rebounded. We think the outlook remains positive for quality stocks, and one way to profit from that—while cutting your risk—is to invest in quality ETFs.


Here’s a look at four international funds that we believe are well-suited for your new buying....
Building the best ETF portfolio for retirement may differ in the details for individual investors, but the basic principles apply equally.
Vaccination plans in the U.S. and globally have spurred a more positive economic outlook for 2021. Still, there are risks on the horizon, like potential delays in the rollout of those vaccines as well as political and trade-war tensions.


Here’s a look at three popular ETFs and whether we think they are buys for investors in 2021.


VANGUARD U.S....
SPDR S&P 500 ETF $379.79 (New York symbol SPY) lets you hold the top stocks of the S&P 500 Index; they’re the major U.S. companies based on market cap, liquidity and industry.


The fund’s highest-weighted stocks offer a lot of appeal for investors: Apple, 6.5% of assets; Microsoft, 5.2%; Amazon.com, 4.2%; Alphabet, 3.3%; Tesla, 2.1%; Facebook, 2.0%; Berkshire Hathaway, 1.4%; Johnson & Johnson, 1.3%; and JP Morgan Chase, 1.3%.


The ETF’s distribution also offers you a solid 1.5% yield, while the fund charges you a very low 0.095% MER.


Going forward, investors should directly gain from U.S....
The best investments for retirement will include RRSPs, dollar-cost averaging, and diversified holdings
How to Get into Investing: ETFs can be a good starting point, especially for a smaller portfolio that’s just starting up. But watch out—there are both good and bad ETFs

Takeovers are a great way for companies to enter new markets and add value. We like Visa’s takeover of a small fintech company, but anti-trust regulators could kill the deal. Another deal to acquire railroad operator Kansas City Southern would also likely face regulatory hurdles.


VISA INC....