ETFs

Exchange traded funds trade on stock exchanges, just like stocks. Investors can buy them on margin, or sell them short. The best exchange-traded funds offer well-diversified, tax-efficient portfolios with exceptionally low management ETF fees. They are also very liquid.

Investors use ETFs in a variety of ways, and some investors work only with ETFs and no other type of investment in portfolio creation.

An amazing aspect of ETFs is their diversity. Some investors may create an entire portfolio solely from a few well-diversified ETFs.

ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading.

Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds.

As well, shares are only added or removed when the underlying index changes. As a result of this low turnover, you won’t incur the regular capital gains taxes generated by the yearly distributions most conventional mutual funds pay out to unitholders.

ETFs have a place in every investor’s portfolio, at TSI Network we also recommend using our three-part Successful Investor strategy:

  1. Invest mainly in well-established companies;
  2. Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
  3. Downplay or avoid stocks in the broker/media limelight.

[text_ad]

Read More Close
ETFs Library Archives
ISHARES S&P/TSX REIT INDEX ETF, $15.21, is a hold. The ETF (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) lets investors tap all 16 Canadian real estate investment trusts in the S&P/TSX REIT Index. Investors pay an MER of 0.60%, and the fund gives you a 5.1% yield.
Vanguard is one of the world’s largest investment management companies. In all, it administers over $10 trillion U.S., spread across 441 mutual funds and ETFs. Here are two of its ETFs that we see as buys for you right now.




VANGUARD GROWTH ETF, $491.81, is a buy. The fund (New York symbol VUG; buy or sell through brokers) lets investors track the Center for Research in Security Prices U.S. Large Cap Growth Index. That broadly diversified index focuses on big U.S. firms.

INVESCO SOLAR ETF, $47.38, is a buy for aggressive investors. The ETF (New York symbol TAN; buy or sell through brokers) tracks solar-related companies (including technology firms and utilities) listed on global exchanges.




Its top holdings are Nextpower (U.S. solar trackers), 11.8%; First Solar (China; solar panels), 11.7%; Sunrun (U.S.; panels), 6.5%; Enlight Renewable Energy (Israel; solar plants), 5.0; GCL Technology (China; polysilicon), 4.9%; ;and Enphase Energy (U.S.; home solar systems), 4.9%. The ETF’s MER is a relatively high 0.71%.
You Can See Our Exchange-Traded Funds Portfolio For January 2026 Here.


ETFs in brief


Exchange-traded funds are set up to mirror the performance of a stock-market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings of that index or sub-index and will allow the fund to “track” its performance.



The MER (Management Expense Ratio) is generally much lower on traditional ETFs than on conventional mutual funds. That’s because most traditional ETFs take a much simpler approach to investing. Instead of actively managing clients’ investments, ETF providers invest so as to mirror the holdings and performance of a particular stock-market index.



ETFs practice this “passive” fund management style, in contrast to the “active” management that conventional mutual funds traditionally provide at much higher costs.
New developments in the field of medical technology, including the use of artificial intelligence (AI), are contributing to the efficient supply of medical products and services to meet growing demand.


In this Supplement, we summarize some of the main developments in the field of AI and its usefulness for the healthcare sector.
ETF managers use different methods to construct their portfolios—and this can lead to different performance outcomes, even if they target the same universe of stocks. ETF managers who construct their portfolios by passively replicating target indexes will mostly use a market capitalization-weighted index. But there are also alternatives available, such as equal-weighted indexes.


Market-cap weighted indexes



The most popular method to construct passively managed ETFs is to aim to replicate a market capitalization-weighted index, such as the S&P 500 or the S&P/TSX 60. In the case of the S&P 500, the 500 largest U.S. companies by market value are included in the index. Individual stocks are weighted based on their market value.
his month, we highlight two new actively managed global equity funds—one from Manulife and one from smaller Canadian fund manager Rocklinc Investment Partners.
Toyota Motor has been recognized as the world’s biggest carmaker for the past 5 years, selling about 10.8 million units last year. The company operates in 170 countries, with 72 manufacturing facilities and a global workforce of 380,000. In the 2025 financial year, the company had sales of $320 billion and profits of $32 billion.


Over the past 10 years, Toyota’s sales increased on average by 7.6% per year while profits increased by 10.8% per year. In line with this profit growth, the stock returned 11.1% per year.



The success of the company is attributable to a range of factors, including the following:
The Japanese economy ranks third in the world and hosts some of the most-profitable global corporations.


Structural challenges such as an aging population and high levels of government debt remain challenges for the Japanese economy. Still, the top Japanese companies continue to do well; in fact, the country’s stock market is hitting new highs.



Here is one ETF that provides exposure to the top Japanese public companies.
The demand for healthcare has been growing at a rapid pace as the population in the developed world grows older and developing countries become wealthier. Meanwhile, new technologies and artificial intelligence (AI) can help to smooth out supply constraints by improving the management of patient diagnostics, administrative processes, and drug discoveries.


In the Supplement starting on page 10, we discuss this in more detail and also highlight some of the companies on the leading edge of new developments. Here are three ETFs that aim to benefit from the opportunities presented by healthcare.