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.
[text_ad]
Your top holdings include Vinhomes (real estate), 8.8%; Vingroup (conglomerate), 7.2%; Masan Group (food), 6.6%; Hoa Phat Group (iron and steel), 5.9%; Vietnam Dairy, 4.8%; and SSI Securities, 4.7%. Other holdings include the Bank for Foreign Trade of Vietnam at 4.4%.
The fund’s largest holding is Taiwan Semiconductor at 21.2% of assets. That’s high for one stock, but the firm continues to be the world’s top maker of the most complex computer chips, with customers such as Apple. Other top stocks include Delta Electronics (industrial automation) at 5.0%; and Hon Hai (contract electronics maker) at 4.0%.
The best of these funds offer a diversified group of stocks and charge you low management fees. Here are five ETFs we like, and one we think you should pass on buying for now.
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 characteristics of the oil and gas producers are well known. Periods of high commodity prices historically lead to large-scale production expansion and invariably to oversupply, lower prices, and poor profitability. This, combined with variations in macro-economic conditions, geopolitical turmoil and other unexpected events, exacerbates price fluctuations. This is evident in the higher volatility of the prices of the listed energy companies and occasional significant price declines or drawdowns.
The medium to long-term prospects for the energy industry were detailed in an in-depth report from the International Energy Agency (“IEA”) published in late 2025. In summary, energy demand will likely continue to grow for the next few decades, but most of the growth will be satisfied by renewable energy, nuclear energy and natural gas.
In addition, the consumer defensive group also consistently performs relatively well during bear markets—a feat that is only matched by a few other segments such as healthcare and utilities.
The company has transitioned from a state-owned entity into a global mining powerhouse, focusing its core operations on iron ore, nickel and copper.
Vale reported revenue of $38.2 billion U.S. and net income of $2.1 billion U.S. for all of 2025. Earnings are dominated by its iron ore business and a much smaller base metals division consisting of nickel mines and smelters, along with copper mines producing copper in concentrate.
The country has great long-term growth potential, although in the near term, the country needs to get its economy back on track. Here is one ETF that provides exposure to the top Brazilian publicly listed companies for investors who want to tap the country’s long-term prospects.
Investors were allocating new money into consumer staples ETFs so far this year, with the iShares S&P/TSX Consumer Staples ETF (symbol XST), the BMO Global Consumer Staples ETF (STPL), and the BMO SPDR U.S. Consumer Staples ETF (ZXLP) receiving strong new inflows, measuring almost 10% of the new assets. Utilities, materials and financials also received strong positive net inflows. The energy sector had outflows in the first few weeks of the year, but inflows turned strongly positive in February.