investment

An investment is an asset or property acquired to generate income or gain appreciation. Appreciation is the increase in the value of an asset over time. It requires the outlay of a resource today, like time, effort, and money, for a greater payoff in the future or for generating a profit.

An investment involves using capital in the present to increase an asset’s value over time.

Investments may include bonds, stocks, real estate, or alternative investments.

Investments can be diversified to reduce risk, though this may reduce the amount of earning potential.

In business contexts, investments are financial; however, consider how some people spend time to make higher incomes in the future (i.e. invest in a college education).

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While TD (see page 1) is our favourite for new buying, we also like the outlook for Canada’s other big banks. We advise all Canadian investors to hold at least three of them.

Like TD, the remaining four banks trade at attractive multiples to their improved earnings; each should also continue to increase its dividend....
Thanks to a series of acquisitions, TD now has the broadest U.S. exposure of any Canadian big bank. In fact, it now has more branches south of the border than in its home market.

Unlike Canada, the U.S. has hundreds of smaller banks. TD’s strong earnings put it in a position to keep adding more of those firms to its American operations....
Beta is a commonly used, but sometimes misleading measure of volatility. To calculate a stock’s beta, an index like the S&P/TSX Composite or the S&P 500 is assigned a beta of 1.0. The historical volatility of different stocks relative to the index are then measured.

If a stock has a beta of 1.0, then it means that the market and the stock move up or down together at the same rate....
Here are three new ETF launches. Each uses “quanitative modelling.” That may make their investment approach sound scientific; however, in our view, it will likely detract from their long-term returns. Many ETFs that use a socalled “black box” to pick stocks find the approach works only for a while, or in retrospect....
The U.S. opens up a big market for Canadians looking to invest in commercial real estate. However, direct access to that real estate (multi-family, retail, offices or industrial properties) is difficult for most Canadian individual investors.

As with all commercial real estate, the large size of those transactions can block investment....
VANGUARD U.S. REIT ETF $84 (New York symbol VNQ; TSINetwork ETF Rating: Conservative; Market cap: $35.1 billion) provides exposure to a selection of U.S. real estate investment trusts (REITs). The fund does that by tracking the MSCI U.S. REIT Index....
The Thai economy is emerging from the slump caused by the political turmoil of 2013-15. During that period, a military coup ousted the country’s prime minister and installed a military-led government.

As a result, economic growth fell sharply as exports and tourism plummeted....
The ETF world is diverse, with a fund for every kind of investment strategy. That includes ETFs for those Canadians who want to invest in companies committed to protecting the environment and helping social causes. Here are two such funds:

ISHARES MSCI KLD 400 SOCIAL ETF $97 (NYSE symbol DSI; TSINetwork ETF Rating: Aggressive; Market cap: $932.5 million) avoids companies that derive a significant portion of their business from alcohol, tobacco, gambling, civilian firearms, nuclear power, military weapons, adult entertainment, and genetically modified organisms.

The fund invests in large U.S....
Investors are increasingly concerned about the high fees charged by many mutual fund managers, and rightly so: studies suggest that the average U.S. large-cap mutual fund underperformed the S&P 500 index by about 1.6% per year over the past 20 years. The Canadian market likely mirrors that.

A 1.6% underperformance per year may not sound like much, but fees wear away at investment outcomes....
The U.S. is the world’s largest ETF market, with a wide range of funds—from those focused on domestic or global equities to those focused on bonds, commodities or, even, hedge fund strategies. Canadians investing in U.S.-listed ETFs must keep several factors in mind:

• In the case of U.S.-listed ETFs that hold international assets, the foreign currency exposure may be hedged back to the U.S....