etf

An ETF (Exchange-Traded Fund) is an investment fund that holds a collection of underlying assets, such as stocks or bonds, in a single pooled vehicle. ETFs allow investors to purchase a variety of different securities at once, providing greater diversification compared to owning individual assets. They are traded on stock exchanges like regular stocks, allowing for intraday trading at market prices. ETFs typically have lower fees than mutual funds and often passively track an index or sector, making them a popular choice for investors seeking a cost-effective way to invest in a diversified portfolio.

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When you buy a real-return bond, you are only protecting yourself against unanticipated rises in inflation.
You Can See Our Exchange-Traded Funds Portfolio For May 2026 Here.

ETFs in brief

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 of that index or sub-index and will allow the fund to “track” its performance.
This month, we highlight two new funds—the first is an actively managed cryptocurrency ETF from 1832 Asset Management. The second is a rules-based global equity ETF from BMO Asset Management.
The Vietnamese economy has been an outstanding performer among its global peers over the past three decades and continues to do well. The country has also benefited from strong growth in international tourist arrivals, as well as numerous major global companies establishing manufacturing facilities in Vietnam.
The units of ETFs trade on the public markets, just like normal stocks. Each of these units represents a share of all the assets (and liabilities) held by the ETF.

At the end of each trading day, the administrator of the ETF calculates the value of all the assets held in the ETF and deducts the liabilities. The net asset value (NAV) per share is then made available to the public.

Most of the trading in ETF units takes place on the stock market, such as the Toronto Stock Exchange, where investors buy and sell the units.
Artificial intelligence (AI) and AI-related software stocks soared from the start of 2024 to around the beginning of 2026. After that, many moved down on investor fears of an “AI bubble.” Some investors fear that the technology won’t live up to the hype and will fail to justify the big spending by these companies.

Meanwhile, AI has improved very rapidly in recent years, to the point that investors worry it will be able to replace current processes that require humans in tech and other industries. That has led to major selloffs for many Software as a Service (SaaS) companies—a decline that some insiders now call the “SaaS-pocolypse.”

However, we think the top software stocks overall are still in line for gains; they can profit all the more by integrating AI and its applications into the products they sell to their customers as well as applying AI to speed up and streamline their operations.
VANGUARD FTSE EMERGING MARKETS ETF $46.98 (Toronto symbol VEE; TSINetwork ETF Rating: Aggressive; Market Cap: $3.8 billion) tracks the FTSE Emerging Markets All Cap China A Inclusion Index, and includes large, medium, and small companies listed on the public markets of developing countries.

Technology companies form the largest part of the portfolio (29%), while Financials (21%), Consumer Goods (11%), Industrials (9%), Materials (8%), and Energy (5%) are other key segments.
One of the key attractions of exchange-traded funds is lower fees compared to mutual funds. In addition, as more competitors enter the market, fees on many ETFs continue to drop.

One of the older U.S.-based funds with a large asset base and higher fees is the iShares MSCI Canada ETF $56.64 (New York symbol EWC). This fund started in 1996 and invests in larger Canadian companies. It has an asset base of $4.7 billion U.S. and a high MER of 0.50%. The units yield 1.4%.

Another similar fund with a large asset base is the iShares S&P/TSX 60 ETF, $49.41 (Toronto symbol XIU). This ETF started up in 1990. It tracks the S&P/TSX 60 Index and has assets of $21.3 billion under management.
Real estate investment trusts (REITs) in Canada and the U.S. faced severe economic disruption starting with the onset of the COVID-19 pandemic. REITs were further hit when interest rates spiked in 2022 as central banks sought to cool inflation caused by high consumer demand, severe supply chain bottlenecks, and massive pandemic-era government spending. However, rates have been falling since 2024. That’s a plus for real estate firms as it lowers their borrowing costs for acquisitions and refinancing; it has also boosted demand for high-yielding REITs over bonds and other fixed-income investments.

Rates are now expected to hold steady or even rise because of Mideast conflict. Still, the overall outlook for REITs remains attractive, especially for seniors housing, and industrial, logistics and retail spaces.
ETF investing is one of the best financial innovations of our time but themed ETF investing—including the Dogs of the Dow — is a poor investing strategy