etf

A: BMO Europe High Dividend Covered Call Hedged to CAD ETF, $21.18, symbol ZWE on Toronto (Units outstanding: 33.9 million; Market cap: $718.0 million; www.bmo.com/gam/ca/investor/products/etfs), holds mostly high-quality European stocks....

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The May 2017 election of Emmanuel Macron as France’s new president ushered in a turnaround for the French stock market....

Smaller companies can generate higher returns than their larger counterparts, but they are often riskier and less liquid, and may underperform for long periods.

Small stocks are also more volatile in times of unsettled or falling markets.

Still, if you focus on the best-quality small companies— or ETFs that hold those stocks—they can be a worthwhile addition to a well-balanced portfolio.

Do small companies have an edge?

Small companies trading on U.S....

First, we look at a three-year-old fund that focuses on companies with substantial insider ownership. Then, we review two funds recently launched by ETF promoters. They aim to capitalize on blockchain technologies—currently a hot investment trend. That alone prompts us to recommend investors stay clear....

If an ETF manager, like Blackrock, goes bankrupt, it would then be the responsibility of the ETF’s board of directors to appoint a replacement manager, self-manage its fund, or make the decision to wind up its ETF. However, the bankruptcy should have little or no impact on the safety of investors’ money since the fund’s custodian would continue to hold the ETF’s assets on behalf of those unitholders.

But what if a major custodian—such as State Street Bank, Bank of New York Mellon or JP Morgan Chase—goes bankrupt?

In the unlikely event that a custodian did go bankrupt, the regulated segregation of client assets from the custodian’s own funds should keep the assets for the ETF’s investors safe.

In addition, in the event of the bankruptcy of a custodian, the assets of the ETF will be returned to the fund, although there could be a time delay....

Traditionally, governments have built and maintained airports, highways, and ports. More and more, in both developed and emerging countries, they are selling those assets to public and private buyers in order to raise revenue.

Here are two ETFs that hold some of those publicly traded buyers....

The May 2017 election of Emmanuel Macron as France’s new president ushered in a turnaround for the French stock market. Even so, the young leader will have to work hard to implement the tough reforms needed to further lift the French economy out of stagnation....

Traditional “sin stocks” include gambling, tobacco and alcohol. Many of the major companies focused on these areas continue to deliver expanding sales and profits. Still, investors need to factor in the risks of everchanging government laws and regulations, taxes and fickle consumers....

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 process: First, an ETF promoter notifies investors around 30 days before a fund is to be liquidated....

ISHARES S&P/TSX SMALL CAP ETF $16 (Toronto symbol XCS; TSINetwork ETF Rating: Aggressive; Market cap: $121.1 million) invests in smaller listed Canadian companies.

The ETF holds 197 stocks, with the top 10 comprising only 13% of its assets....