Small companies have appeal but also risk

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… Read More

Pass on this ETF

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. This gives it the appearance of a well-diversified… Read More

Small-cap ETFs aim for growth

Smaller firms can sometimes generate higher returns than their larger counterparts, but they are often riskier, less liquid, and may underperform for long periods. One way to offset some of the risk is to focus on ETFs that hold top-quality small-capitalization companies.

Here we look… Read More

Profit from China’s growth

GUGGENHEIM CHINA SMALL CAP ETF $30.63 (New York Exchange symbol HAO; buy or sell through brokers; www.guggenheimfunds. com) aims to track the AlphaShares China Small Cap Index. It’s made up of the 347 Chinese stocks that foreign investors are allowed to hold and that have… Read More

Gain from China’s trends

GUGGENHEIM CHINA SMALL CAP ETF $27.12 (New York Exchange symbol HAO; buy or sell through brokers; www.guggenheimfunds.com) aims to track the AlphaShares China Small Cap Index. It’s made up of the 347 Chinese stocks that foreign investors are allowed to hold and that have market… Read More

Pat: What is your view on buying the Canadian Vector Equity Fund? I believe it’s tilted towards value stocks and small cap stocks. Its MER is higher than an ETF, but maybe the value and small-company approach over long periods of time will add value. What are your thoughts on going with this mutual fund or a small-cap ETF such as the iShares S&P/TSX SmallCap Index ETF?

A: On a broad level, funds that specialize in small-cap stocks are always more volatile. However, some small caps do offer above-average potential—like those we recommend in Stock Pickers Digest.
Incidentally, we think it’s a mistake to generalize about small cap stocks. Some small caps are… Read More

Profit from China’s future

GUGGENHEIM CHINA SMALL CAP ETF $25.26 (New York Exchange symbol HAO; buy or sell through brokers; www.guggenheimfunds.com) aims to track the AlphaShares China Small Cap Index. It’s made up of the 335 Chinese stocks that foreign investors are allowed to hold and that have market… Read More

Hold off on buying these two China ETFs

Hold off on buying these two China ETFs

These two ETFs offer low-fee exposure to China’s top companies, but economic uncertainty in the near-term may challenge their growth.
Chinese stocks have rebounded around 33% from their February 2016 lows. But they are still well below their mid-2015 highs.
While the economy grew 6.7% in the… Read More

Hold off buying these two China ETFs

Chinese stocks have rebounded around 33% from their February 2016 lows. But they are still well below their mid-2015 highs.
While the economy grew 6.7% in the latest quarter, that was fuelled by goverment spending, record lending by the banks and a red-hot housing market. Those… Read More