etf

For parents or grandparents who wish to save for their children’s future, there are few better ways than to invest in a diversified portfolio of high-quality, growing companies. Here are two ETFs that can help investors achieve that goal. And even better, these same ETFs are great portfolio additions at any age! Meanwhile, please also see the Supplement on page 49 for more information.


BMO S&P/TSX CAPPED COMPOSITE ETF $25.79 (Toronto symbol ZCN; TSINetwork ETF Rating: Aggressive; Market cap: $5.4 billion) invests in publicly listed Canadian companies.


The ETF tracks the S&P/TSX Capped Composite Index....

The Dogs of the Dow strategy focuses on dividends, which we think is a good idea. But beyond that, high dividend yields can be a warning sign, not a harbinger of rising stock prices

A: Preferred shares behave more like long-term fixed-income instruments rather than short-term instruments. So, while short-term interest rates are still relatively low, the outlook for long-term interest rates is less certain.

The underlying credit quality of preferred share issuers can be a negative factor in some cases; for example, when the issuer’s share price is falling.

So unlike GICs, which don’t fall in value, the prices of preferreds can decline along with stock markets.

If you want to own a preferred share as part of the fixed-income segment of your portfolio, and you can accept some risk, then preferreds are okay to hold....

SPDR S&P CHINA ETF $130.46 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com) tracks the S&P China BMI Index. This includes all publicly traded Chinese stocks available to foreign investors.


Right now, the SPDR S&P China ETF holds 820 stocks....

ISHARES MSCI TAIWAN INDEX FUND, $60.35, is a buy for aggressive investors. The ETF (New York symbol EWT; buy or sell through brokers) gives you direct exposure to some of the top public companies of this East Asian powerhouse economy.


The fund’s largest holding is Taiwan Semiconductor at 20.3% of assets....

The major Canadian and U.S. stock markets have moved back up since their initial COVID-19 drop. Nonetheless, we think that if you can afford to stay in the market for several years or longer, now is still a good time to buy. We see ETFs as one way for you to profit from that rise, while cutting your risk.


The best of these funds offer a diversified group of stocks while charging you low management fees....

The Bank of Canada cut its benchmark interest rate to 0.25% in March 2020. That was meant to support economic activity after COVID-19 hit. Whether the bank continues to hold that rate steady, cuts it further or raises it depends on Canada’s economic growth and employment levels.


Meanwhile, today’s low interest rates make bonds unattractive....

A: The iShares S&P/TSX Composite High Dividend Index ETF, $22.23, symbol XEI on Toronto (Units outstanding: 44.7 million; Market cap: $993.7 million; www.blackrock.com/ca), aims to track the S&P/TSX Composite High Dividend Index....

When thinking about new places to put your money, you really should take an in-depth look at what they offer, what you get in return, and the built-in and related risks. That’s especially so in today’s innovative and fast-changing investment markets.

Before you decide on indulging in one of today’s novel investment opportunities, it’s a good idea to see where it falls in this traditional three-level financial hierarchy.

#1 – Investment....

A: BMO International Dividend ETF, $19.67, symbol ZDI on Toronto (Units outstanding: 22.2 million; Market cap: $440.6 million; www.bmo.com), offers exposure to a portfolio of high-yield dividend-paying companies in developed market....