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
This month, we highlight two new funds—the first is a broad commodity producers ETF from Global X, while the second is an actively managed North American equity ETF from National Bank.
This month, we highlight two new funds—the first is a broad commodity producers ETF from Global X, while the second is an actively managed North American equity ETF from National Bank.
Sweden was traditionally known as a high-tax environment where the government provided state-run schools, hospitals, and care homes. Driven by economic stagnation and a severe banking crisis in the 1990s, the country implemented sweeping economic overhauls. These reforms successfully reduced state spending, revitalized the private sector, and positioned Sweden as a premier European hub for innovation.
Sweden has integrated private enterprise into core welfare sectors. Nearly half of primary healthcare clinics are now privately owned. Additionally, one-third of public high schools are run by private, often publicly traded companies funded through state vouchers.
Sweden has integrated private enterprise into core welfare sectors. Nearly half of primary healthcare clinics are now privately owned. Additionally, one-third of public high schools are run by private, often publicly traded companies funded through state vouchers.
Sweden used to be known for its comprehensive welfare system, considerable involvement of government in the economy and high taxes. But the country has drastically reduced the role of the government over the past two decades by cutting back on social welfare payments and partly privatizing education and healthcare.
As a result, business has flourished, providing a large number of newly listed companies and producing more billionaires per capita than the U.S. (see box on page 66 for more details).
Here’s an ETF that provides exposure to Sweden’s top publicly listed companies. It’s for investors who want to tap the country’s attractive long-term prospects.
As a result, business has flourished, providing a large number of newly listed companies and producing more billionaires per capita than the U.S. (see box on page 66 for more details).
Here’s an ETF that provides exposure to Sweden’s top publicly listed companies. It’s for investors who want to tap the country’s attractive long-term prospects.
Preferred shares are equities that pay fixed dividends without offering investors voting rights. Still, those payments are made before dividends to common shareholders.While investors are attracted to “preferreds” for income, those shares are sensitive to the movement of interest rates and their prices can be volatile.
Here are two ETFs that focus on preferred shares issued by Canadian companies, and one that invests in U.S. prefs.The supplement on page 70 describes in more detail the characteristics of preferred shares.
Here are two ETFs that focus on preferred shares issued by Canadian companies, and one that invests in U.S. prefs.The supplement on page 70 describes in more detail the characteristics of preferred shares.
Vanguard FTSE DEVELOPED All Cap Ex North America ETF $48.13 (Toronto symbol VIU; TSINetwork ETF Rating: Aggressive; Market cap: $10.7 billion) invests in publicly listed companies outside of North America. This fund can be used to complement the equity portfolios of Canadian investors that are normally concentrated on Canadian and U.S. stocks.
The ETF passively tracks the FTSE Developed All Cap Ex North America Index. The index includes large, medium, and small companies listed on the public markets in developed countries. Stocks are weighted based on their market values.
The ETF passively tracks the FTSE Developed All Cap Ex North America Index. The index includes large, medium, and small companies listed on the public markets in developed countries. Stocks are weighted based on their market values.
Direxion Daily Semiconductor Bull 3x ETF $180.65 (New York symbol SOXL) aims to use a combination of derivatives and debt to offer daily returns that correspond to three times the daily gains of the ICE Semiconductor Index. If SOXL is successful in meeting its investment objective, its price should gain (or lose) roughly three times that of the semiconductor index.
Institutional investors, particularly hedge funds, carry out around 60% of all trading in leveraged and inverse-leveraged investments. They generally use them as part of complicated multi-investment trading plays. They also trade frequently, and in large quantities.
Inevitably, investments like these will go down more readily than they will go up. That’s because investors have to absorb the costs of borrowing, entering into agreements with counterparties, etc., on top of the 0.72% MER.
Institutional investors, particularly hedge funds, carry out around 60% of all trading in leveraged and inverse-leveraged investments. They generally use them as part of complicated multi-investment trading plays. They also trade frequently, and in large quantities.
Inevitably, investments like these will go down more readily than they will go up. That’s because investors have to absorb the costs of borrowing, entering into agreements with counterparties, etc., on top of the 0.72% MER.
Global military spending reached an all-time high of $2.9 trillion U.S. in 2026, spurred by major regional wars and large-scale investments by China, Russia, Saudi Arabia, the U.K. and Ukraine. NATO members are also increasing their military target spending, and the U.S. administration has proposed a record military budget for 2027. That spending might slow in the coming years as governments are forced to re-examine their military budgets in the wake of massive debt burdens. Still, rising military tensions should keep spending at high levels.
Here are two ETFs that provide exposure to companies that benefit from military spending (see also the supplement on page 69).
Here are two ETFs that provide exposure to companies that benefit from military spending (see also the supplement on page 69).
GLOBAL X COPPER MINERS ETF, $90.25, is a buy. The ETF (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) lets you track the Solactive Global Copper Miners Index, with 41 global mining and exploration firms. The fund launched in April 2010.
Canadian firms make up 39.8% of the ETF’s holdings. The fund’s other holdings include companies based in Australia (9.7%), the U.S. (9.3%), China (8.4%), Japan (6.3%), the U.K. (5.1%), Poland (5.0%) and Sweden (4.9%). Investors face an acceptable 0.65% MER.
Canadian firms make up 39.8% of the ETF’s holdings. The fund’s other holdings include companies based in Australia (9.7%), the U.S. (9.3%), China (8.4%), Japan (6.3%), the U.K. (5.1%), Poland (5.0%) and Sweden (4.9%). Investors face an acceptable 0.65% MER.
INVESCO SOLAR ETF, $70.29, is a hold. 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 First Solar (China; solar panels), 12.0%; Nextpower (U.S. solar trackers), 9.4%; Enphase Energy (U.S.; home solar systems), 8.5%; Enlight Renewable Energy (Israel; solar plants), 7.6%; SolarEdge Technologies (Israel; DC inverters), 6.5%; and Sunrun (U.S.; panels), 4.7%. The ETF’s MER is a relatively high 0.70%.
Its top holdings are First Solar (China; solar panels), 12.0%; Nextpower (U.S. solar trackers), 9.4%; Enphase Energy (U.S.; home solar systems), 8.5%; Enlight Renewable Energy (Israel; solar plants), 7.6%; SolarEdge Technologies (Israel; DC inverters), 6.5%; and Sunrun (U.S.; panels), 4.7%. The ETF’s MER is a relatively high 0.70%.