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.
Read More
Close
POWERSHARES QQQ ETF $105.63 (Nasdaq symbol QQQ; buy or sell throughbrokers ; www.invescopowershares.com), formerly called Nasdaq 100 Trust Shares, holds stocks representing the Nasdaq 100 Index, which consists of the 100 largest shares on the Nasdaq exchange by market cap.
The Nasdaq 100 Index contains shares of companies in a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial firms. The fund’s expenses are about 0.20% of its assets. It yields 1.0%.
The index’s highest-weighted stocks are Apple, Microsoft, Amgen, Google, Cisco Systems, Intel Corp., Amazon.com, Gilead Sciences, Comcast and Facebook.
...
The Nasdaq 100 Index contains shares of companies in a number of major industries, including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain financial firms. The fund’s expenses are about 0.20% of its assets. It yields 1.0%.
The index’s highest-weighted stocks are Apple, Microsoft, Amgen, Google, Cisco Systems, Intel Corp., Amazon.com, Gilead Sciences, Comcast and Facebook.
...
ISHARES CANADIAN SELECT DIVIDEND INDEX ETF $22.48 (Toronto symbol XDV; buy or sell through brokers; ca.ishares.com) holds 30 of the highestyielding 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 4.3%.
The fund’s top holdings are CIBC, 9.7%; Bank of Montreal, 6.8%; Royal Bank, 6.5%; BCE, 5.8%; Bank of Nova Scotia, 5.5%; Laurentian Bank of Canada, 5.0%; Rogers Communications, 4.5%; Manitoba Telecom, 4.4%; TD Bank, 4.4%; National Bank, 4.1%; IGM Financial, 4.0%; and Emera Inc., 3.8%.
The ETF holds 53.7% of its assets in financial stocks. The top Canadian finance stocks have sound prospects, but if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.
...
The fund’s top holdings are CIBC, 9.7%; Bank of Montreal, 6.8%; Royal Bank, 6.5%; BCE, 5.8%; Bank of Nova Scotia, 5.5%; Laurentian Bank of Canada, 5.0%; Rogers Communications, 4.5%; Manitoba Telecom, 4.4%; TD Bank, 4.4%; National Bank, 4.1%; IGM Financial, 4.0%; and Emera Inc., 3.8%.
The ETF holds 53.7% of its assets in financial stocks. The top Canadian finance stocks have sound prospects, but if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.
...
ISHARES S&P/TSX 60 INDEX ETF $20.47 (Toronto symbol XIU; buy or sell through brokers; ca.ishares.com) 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 0.18% of assets, and the units yield 3.1%.
The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include.
The index’s top holdings are Royal Bank, 8.3%; TD Bank, 7.7%; Valeant Pharmaceuticals, 6.0%; Bank of Nova Scotia, 5.6%; CN Railway, 4.7%; Suncor Energy, 4.0%; Bank of Montreal, 3.7%; BCE, 3.6%; Enbridge, 3.3%; Manulife Financial, 3.2%; CIBC, 3.0%; Brookfield Asset Management, 2.8%; and TransCanada Corp., 2.4%.
...
The index mostly consists of high-quality companies. However, it must ensure that all sectors are represented, so it holds a few we wouldn’t include.
The index’s top holdings are Royal Bank, 8.3%; TD Bank, 7.7%; Valeant Pharmaceuticals, 6.0%; Bank of Nova Scotia, 5.6%; CN Railway, 4.7%; Suncor Energy, 4.0%; Bank of Montreal, 3.7%; BCE, 3.6%; Enbridge, 3.3%; Manulife Financial, 3.2%; CIBC, 3.0%; Brookfield Asset Management, 2.8%; and TransCanada Corp., 2.4%.
...
Scotia Global Dividend Fund is a mutual fund that invests in dividend-paying stocks worldwide.
Its top holdings are Citigroup, UBS Group AG, Wells Fargo & Company, Nestlé SA, Procter & Gamble, Roche Holdings AG, Novartis AG, Mondelez International, Apple and Bayer AG.
Scotia Global Dividend Fund’s geographic breakdown includes the U.S., 48.7%; Switzerland, 11.2%; Canada, 9.7%; the U.K., 9.0%; and Germany, 3.3%.
The fund’s MER is 2.64%. It yields 2.2%.
The Scotia Global Dividend Fund holds mostly large-capitalization multinational companies. We don’t see any particular advantage in investing solely in the world’s biggest stocks, and we have no reason to believe the fund’s managers can create any such advantage. With that in mind, we see little appeal in exposing yourself to a 2.64% MER, so we don’t recommend the Scotia Global Dividend Fund.
...
Its top holdings are Citigroup, UBS Group AG, Wells Fargo & Company, Nestlé SA, Procter & Gamble, Roche Holdings AG, Novartis AG, Mondelez International, Apple and Bayer AG.
Scotia Global Dividend Fund’s geographic breakdown includes the U.S., 48.7%; Switzerland, 11.2%; Canada, 9.7%; the U.K., 9.0%; and Germany, 3.3%.
The fund’s MER is 2.64%. It yields 2.2%.
The Scotia Global Dividend Fund holds mostly large-capitalization multinational companies. We don’t see any particular advantage in investing solely in the world’s biggest stocks, and we have no reason to believe the fund’s managers can create any such advantage. With that in mind, we see little appeal in exposing yourself to a 2.64% MER, so we don’t recommend the Scotia Global Dividend Fund.
...
Investing in aggressive growth funds can be profitable for ETF investors who understand the risks
This week’s first question helps illustrate a common practice in today’s investment business, particularly in ETFs (Exchange Traded Funds). ETFs are a little like conventional mutual funds, but with two key differences. First, ETFs trade on a stock exchange throughout the day, much like ordinary stocks. So you can buy them through a broker whenever the stock market is open, and generally you pay the same commission rate that you pay to buy stocks. In contrast, you can only buy most conventional mutual funds at the end of the day. Commissions vary widely, depending on negotiation with your broker for fund dealer....
iShares Core S&P 500 Hedged ETF (CAD-Hedged), $23.17, symbol XSP on Toronto (Units outstanding: 125.4 million; Market cap: $2.9 billion; www.blackrock.com), holds the stocks in the S&P 500 Index, which is comprised of 500 major U.S. stocks chosen by market size, liquidity and industry group.
The index’s 10 highest-weighted stocks are Exxon Mobil, Apple, Berkshire Hathaway, Microsoft, Wells Fargo, General Electric, AT&T, Johnson & Johnson, JPMorgan Chase & Co. and Pfizer. It has a 1.6% dividend yield.
iShares Core S&P 500 Hedged ETF (CAD-Hedged) is hedged against movements of the U.S. dollar against the Canadian dollar. The fund’s Canadian-dollar value rises and falls solely with the movements of the stocks in its portfolio.
...
The index’s 10 highest-weighted stocks are Exxon Mobil, Apple, Berkshire Hathaway, Microsoft, Wells Fargo, General Electric, AT&T, Johnson & Johnson, JPMorgan Chase & Co. and Pfizer. It has a 1.6% dividend yield.
iShares Core S&P 500 Hedged ETF (CAD-Hedged) is hedged against movements of the U.S. dollar against the Canadian dollar. The fund’s Canadian-dollar value rises and falls solely with the movements of the stocks in its portfolio.
...
BMO U.S. High Dividend Covered Call ETF, $18.41, symbol ZWH on Toronto (Units outstanding: 14.7 million; Market cap: $270.6 million; www.etfs.bmo.com), uses covered calls to try to boost its cash flow so it can provide higher distributions to investors.
Covered call writing is where you sell a call option against a stock you own. You receive cash for selling the call but are obligated to sell the stock at a fixed price (the “strike price”) if the holder of the call exercises the option. In other words, in exchange for being paid the price of the option, you give up any increase in the stock above the strike price.
Selling call options generates an income stream. However, it also tends to shrink any capital gains the fund’s portfolio might generate. When the stocks the fund owns rise above the strike price, holders of the call options it has sold will exercise those options and buy the stock from the fund at the price fixed by the option’s terms. This introduces a filtering mechanism under which the fund has to sell its best picks to call holders at a fixed price, while holding on to stocks that go sideways or down.
...
Covered call writing is where you sell a call option against a stock you own. You receive cash for selling the call but are obligated to sell the stock at a fixed price (the “strike price”) if the holder of the call exercises the option. In other words, in exchange for being paid the price of the option, you give up any increase in the stock above the strike price.
Selling call options generates an income stream. However, it also tends to shrink any capital gains the fund’s portfolio might generate. When the stocks the fund owns rise above the strike price, holders of the call options it has sold will exercise those options and buy the stock from the fund at the price fixed by the option’s terms. This introduces a filtering mechanism under which the fund has to sell its best picks to call holders at a fixed price, while holding on to stocks that go sideways or down.
...
Investors can use special ETFs called bear funds to hedge their positions in a market downturn.
Trading ETFs can work just as well in facilitating dumb moves as it does with smart moves