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.

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ETFs Library Archives
You Can See Our Exchange-Traded Funds Portfolio For March 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.
The merits of investing in dividend-paying companies are well known—payouts that match or better returns, regular income, and lower risk. Still, investors looking for constant and regular dividends need to be aware that ETF dividend payouts are not necessarily as smooth as the best individual dividend-paying companies.
The robotics industry has transitioned from specialized factories to complex, dynamic settings such as hospitals, battlefields and retail spaces.

Here we highlight some of the key applications of robots in those commercial spaces.
Stock markets continued their upward march in January 2026, but the highlights came from international stocks, emerging markets, and commodities rather than from the major U.S. companies.

During January, there were notable advances by uranium miners (as demonstrated by Toronto symbol HURA), copper miners (New York symbol COPX), and semiconductor companies (New York symbol PSI). All of these ETFs gained more than 14% in the month, with the uranium ETF adding a stellar 24.6%.

On the other end of the spectrum, bitcoin (Toronto symbol BTCC) lost further ground during the month, along with U.S. technology and software companies (New York symbol IGV). Both these ETFs are down by more than 20% over the past three months.
This month, we highlight two new actively managed funds. The first is an ETF from CI Global Asset Management; it invests in other stock-market ETFs—with a sprinkling of gold and bitcoin mixed in. The second fund below is an actively managed international ETF from J.P. Morgan.
Chile’s copper production has stagnated over the past decade but is expected to rebound to output of 5.6 million metric tons in 2026. This growth is anchored by a pipeline of 13 major projects worth $15 billion U.S. Seven of them are slated to begin or ramp up operations by the end of 2026, adding 500,000 tonnes of annual capacity. Chile’s new pro-mining president (see above) should also provide a big boost.

The country is the world’s main miner of copper (25% of global production), followed by Peru and the Democratic Republic of Congo. Chile is also home to the largest single copper mine in the world—BHP/Escondida —and to 10 of the 20 largest copper mines.
Below, we highlight an ETF that’s soaring—the iShares MSCI Chile ETF has almost doubled since the start of 2025, and its units are now at all-time highs.

As the world’s major copper producer, Chile’s economy is a major beneficiary of the copper bull market that began in 2020. More positive news for the country is the significant drop in inflation and interest rates. A market-friendly president will also soon be inaugurated. It is, therefore, no surprise that the country’s stock market is booming.
Investors who are interested in receiving regular income streams from their portfolios have a wide range of ETFs to choose from.

However, the stock selection strategies followed by ETFs vary widely, and some have more consistent payout histories than others.

Below, we look at three ETFs that focus on dividend-paying companies. The Supplement on page 30 provides more information on the dividend growth and performance of a select group of dividend-focused ETFs.
BMO S&P US MID CAP 400 ETF $52.09 (Toronto symbol ZMID, TSINetwork ETF Rating: Aggressive; Market cap: $303.4 million) invests in medium-sized U.S. companies. It tracks the S&P 400 Mid-Cap Index.

The largest industry allocations are to Industrials (22% of assets), Technology (16%), Financials (16%), Consumer Discretionary (12%), Health Care (9%), Real Estate (7%), and Basic Materials (5%).

The ETF holds 400 companies with only 7.0% of the assets allocated to the top 10 stocks. Top holdings include Ciena Corp. (Technology, 1.0%), Coherent Corp. (Technology, 0.9%), United Therapeutics (Healthcare, 0.7%), Caseys General Store (Consumer, 0.6%), Illumina (Healthcare, 0.6%), Pure Storage (Technology, 0.6%), Curtis-Wright Group (Industrials, 0.6%), RB Global (Industrials, 0.6%), Royal Gold (Basic Materials, 0.6%), and Transunion (Financials, 0.5%).
One of the key attractions of exchange-traded funds is their generally lower fees compared to mutual funds. In addition, as more competitors entered 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 $56.62 (New York symbol EWC). This fund started in 1996 and invests in larger Canadian companies. It has an asset base of $4.1 billion U.S. and an 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, $48.68 (Toronto symbol XIU). This ETF started up in 1990. It tracks the S&P/TSX 60 Index and has assets of $21.1 billion under management.