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:
- Invest mainly in well-established companies;
- Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; the Consumer sector; Finance; Utilities);
- Downplay or avoid stocks in the broker/media limelight.
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ETFs Library Archives
You Can See Our Exchange-Traded Funds Portfolio For May 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.
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.
All in all, we see the recent drop in software stocks as a chance to add the leaders (see page 43) to a well-balanced portfolio. Note, though, that given the uncertainty in the industry right now over AI disruption, even the top stocks (or the ETFs that hold them) are best suited for the more aggressive segment of your holdings.
The recent sharp declines in the stock prices of software giants like Salesforce, Microsoft, ServiceNow, Intuit, Booking Holdings, Palo Alto, Adobe and Thomson Reuters were partly driven by a re-evaluation of software business models due to fears of disruption by competing products driven by artificial intelligence (AI).
Investors fear that advanced AI tools can now recreate complex software solutions quickly and with far fewer resources. In addition, traditional seat-based subscription models are under threat; if one AI agent can do the work of several junior analysts, clients may require fewer software licenses. That would lead to lower seat-based demand for established software firms.
The recent sharp declines in the stock prices of software giants like Salesforce, Microsoft, ServiceNow, Intuit, Booking Holdings, Palo Alto, Adobe and Thomson Reuters were partly driven by a re-evaluation of software business models due to fears of disruption by competing products driven by artificial intelligence (AI).
Investors fear that advanced AI tools can now recreate complex software solutions quickly and with far fewer resources. In addition, traditional seat-based subscription models are under threat; if one AI agent can do the work of several junior analysts, clients may require fewer software licenses. That would lead to lower seat-based demand for established software firms.
This month, we highlight two new funds—the first is an actively managed cryptocurrency ETF from 1832 Asset Management. The second is a rules-based global equity ETF from BMO Asset Management.
Vietnam’s tourism industry has undergone a remarkable transformation, with international tourists increasing threefold over the past decade. This growth is driven by a blend of breathtaking natural landscapes, a deep and accessible history, and a reputation for exceptional hospitality.
Infrastructure development has played a critical role in this expansion. The government has prioritized the modernization of international airports, the expansion of high-speed rail links, and the simplification of e-visa processes.
Infrastructure development has played a critical role in this expansion. The government has prioritized the modernization of international airports, the expansion of high-speed rail links, and the simplification of e-visa processes.
The Vietnamese economy has been an outstanding performer among its global peers over the past three decades and continues to do well. The country has also benefited from strong growth in international tourist arrivals, as well as numerous major global companies establishing manufacturing facilities in Vietnam.
The units of ETFs trade on the public markets, just like normal stocks. Each of these units represents a share of all the assets (and liabilities) held by the ETF.
At the end of each trading day, the administrator of the ETF calculates the value of all the assets held in the ETF and deducts the liabilities. The net asset value (NAV) per share is then made available to the public.
Most of the trading in ETF units takes place on the stock market, such as the Toronto Stock Exchange, where investors buy and sell the units.
At the end of each trading day, the administrator of the ETF calculates the value of all the assets held in the ETF and deducts the liabilities. The net asset value (NAV) per share is then made available to the public.
Most of the trading in ETF units takes place on the stock market, such as the Toronto Stock Exchange, where investors buy and sell the units.
Artificial intelligence (AI) and AI-related software stocks soared from the start of 2024 to around the beginning of 2026. After that, many moved down on investor fears of an “AI bubble.” Some investors fear that the technology won’t live up to the hype and will fail to justify the big spending by these companies.
Meanwhile, AI has improved very rapidly in recent years, to the point that investors worry it will be able to replace current processes that require humans in tech and other industries. That has led to major selloffs for many Software as a Service (SaaS) companies—a decline that some insiders now call the “SaaS-pocolypse.”
However, we think the top software stocks overall are still in line for gains; they can profit all the more by integrating AI and its applications into the products they sell to their customers as well as applying AI to speed up and streamline their operations.
Meanwhile, AI has improved very rapidly in recent years, to the point that investors worry it will be able to replace current processes that require humans in tech and other industries. That has led to major selloffs for many Software as a Service (SaaS) companies—a decline that some insiders now call the “SaaS-pocolypse.”
However, we think the top software stocks overall are still in line for gains; they can profit all the more by integrating AI and its applications into the products they sell to their customers as well as applying AI to speed up and streamline their operations.
VANGUARD FTSE EMERGING MARKETS ETF $46.98 (Toronto symbol VEE; TSINetwork ETF Rating: Aggressive; Market Cap: $3.8 billion) tracks the FTSE Emerging Markets All Cap China A Inclusion Index, and includes large, medium, and small companies listed on the public markets of developing countries.
Technology companies form the largest part of the portfolio (29%), while Financials (21%), Consumer Goods (11%), Industrials (9%), Materials (8%), and Energy (5%) are other key segments.
Technology companies form the largest part of the portfolio (29%), while Financials (21%), Consumer Goods (11%), Industrials (9%), Materials (8%), and Energy (5%) are other key segments.
One of the key attractions of exchange-traded funds is lower fees compared to mutual funds. In addition, as more competitors enter the market, fees on many ETFs continue to drop.
One of the older U.S.-based funds with a large asset base and higher fees is the iShares MSCI Canada ETF $56.64 (New York symbol EWC). This fund started in 1996 and invests in larger Canadian companies. It has an asset base of $4.7 billion U.S. and a high MER of 0.50%. The units yield 1.4%.
Another similar fund with a large asset base is the iShares S&P/TSX 60 ETF, $49.41 (Toronto symbol XIU). This ETF started up in 1990. It tracks the S&P/TSX 60 Index and has assets of $21.3 billion under management.
One of the older U.S.-based funds with a large asset base and higher fees is the iShares MSCI Canada ETF $56.64 (New York symbol EWC). This fund started in 1996 and invests in larger Canadian companies. It has an asset base of $4.7 billion U.S. and a high MER of 0.50%. The units yield 1.4%.
Another similar fund with a large asset base is the iShares S&P/TSX 60 ETF, $49.41 (Toronto symbol XIU). This ETF started up in 1990. It tracks the S&P/TSX 60 Index and has assets of $21.3 billion under management.
Real estate investment trusts (REITs) in Canada and the U.S. faced severe economic disruption starting with the onset of the COVID-19 pandemic. REITs were further hit when interest rates spiked in 2022 as central banks sought to cool inflation caused by high consumer demand, severe supply chain bottlenecks, and massive pandemic-era government spending. However, rates have been falling since 2024. That’s a plus for real estate firms as it lowers their borrowing costs for acquisitions and refinancing; it has also boosted demand for high-yielding REITs over bonds and other fixed-income investments.
Rates are now expected to hold steady or even rise because of Mideast conflict. Still, the overall outlook for REITs remains attractive, especially for seniors housing, and industrial, logistics and retail spaces.
Rates are now expected to hold steady or even rise because of Mideast conflict. Still, the overall outlook for REITs remains attractive, especially for seniors housing, and industrial, logistics and retail spaces.