ETFs - The Successful Investor Inc

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

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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You Can See Our Exchange-Traded Funds Portfolio For September 2024 Here.

ETFs in brief

Exchange-traded funds are set up to mirror the performance of a stock-market index or sub-index....

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Pat McKeough

ETFs

Falling rates spur July’s returns

Further indications that central banks around the world are now moving to ease interest rates prompted gains for several rate-driven market groups in July.

Top performers during the month came from various sectors that lagged the high-flying technology sector over the past few years....

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Pat McKeough

ETFs

New ETFs for Canadian investors

Despite the large number of ETFs already on the market, Canadian managers continue to launch new funds. This month we highlight an ETF from CI Investments that selects high-quality, dividend-paying U.S. companies. The second ETF comes from Hamilton Capital Partners....

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Pat McKeough

ETFs

ICON is Ireland’s global leader in medical research

ICON plc is a contract research organization (CRO) that provides support services to the medical manufacturing industry.

ICON provides drug development and clinical trial services to pharmaceutical, biotechnology, and medical device firms. It is one of a few CROs with the global infrastructure to carry out late-stage, multinational trials.

ICON ranks second in the world in the CRO category, among major competitors including IQVIA, Medspace, and Fortrea....

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Pat McKeough

ETFs

Ireland is home to top global corporations

Ireland was once known as “the Celtic Tiger” for the high economic growth rates it achieved between 1995 and 2007. However, the global financial crisis of 2008 to 2009 set the country back significantly. Growth only returned several years later. The economy suffered another big setback with the COVID-19 pandemic—Irish stocks have since soared to new highs.

All in all, the country’s low corporate tax rates, duty-free access to the valuable European marketplace, and a well-educated workforce remain attractive to large, multinational corporations.

Here’s an ETF that provides you with exposure to the top publicly listed Irish companies

ISHARES MSCI IRELAND ETF $67.36 (New York symbol EIRL; TSINetwork ETF Rating: Aggressive; Market cap: $117.8 million) tracks the performance of the largest companies listed in Ireland.

Consumer Discretionary stocks account for 31% of its assets, while Healthcare (24%), Consumer Staples (15%), and Financial Services (12%) are other key segments.

The ETF holds a portfolio of 24 stocks; the top 10 holdings make up a considerable 76% of the portfolio....

5 min read

Pat McKeough

ETFs

Growth ETFs add portfolio diversification

Most successful investors hold a mix of stocks (or ETFs that hold them) in their portfolios. Indeed, one key component of a well-diversified portfolio is growth stocks. Note, however, that it’s very easy to confuse growth stocks with momentum stocks. Like growth stocks, momentum stocks often move up faster than the market averages....

4 min read

Pat McKeough

ETFs

A record first half of the year for Canadian ETFs

The Canadian ETF market experienced significant growth in the first half of 2024, with an asset base valued at $442 billion at the end of June. New money invested into Canadian-listed ETFs amounted to $33.3 billion—a record for the first half of the year.

Most ETF money in the Canadian market is invested in stocks (62%), followed by fixed income (30%)....

1 min read

Pat McKeough

ETFs

A low-cost ETF to invest in the broad U.S. market

TD U.S. Equity Index ETF $42.24 (Toronto symbol TPU; TSINetwork ETF Rating: Conservative; Market cap: $2.6 billion) invests in large U.S. publicly listed companies. It tracks the Solactive U.S. Large Cap Index. That index includes the top U.S....

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Pat McKeough

ETFs

AI will drive your semiconductor gains

The multi-billion-dollar semiconductor (computer chip) industry has seen spectacular growth over the past two decades. Demand for high-end computers and gaming accelerated during the peak COVID-19 period. Although the industry has now returned to more normal levels of operation,, manufacturers of specialized semiconductors continue to experience strong growth....

3 min read

Pat McKeough

ETFs

Pass on this ETF

Direxion Daily Semiconductor Bull 3x ETF $35.05 (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) approximately 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....

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Pat McKeough

Testimonials

The cornerstones of Pat’s strategy–value, diversification and timelines–make his newsletter, The Successful Investor, highly profitable while minimizing risk. His advice is no-nonsense, down-to-earth and based on solid research. You’ll know what to invest in and what to avoid.

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Investors Association of Canada
The older I get the better dividends look. For retirees and would-be retirees who want to sleep at night, I can’t think of a better source of information on reliable growing dividend income than Pat McKeough’s newsletter, Dividend Advisor.

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Financial Post Columnist
As a manager of more than $500 million in mutual funds, I have access to the best brokerage research available in this country. But I still take time to read Pat McKeough’s premium newsletters

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I appreciate the 25 years of above market returns I received by following your advice. at least 95% of my investment decisions were based on TSI recommendations.

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Subscriber since 1996. Inner Circle Member Since 2006
The newsletters I receive in Inner Circle Pro are fantastic! I have been following Pat’s advice for years and everything he has said has been amazing. His commentaries are brilliant, insightful, educational, rational and balanced. My returns are almost double the TSE and I have referred many of my friends who have switched over to your services.

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Inner Circle Pro subscriber

Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

ETFs

What are ETFs?

ETF is an acronym for exchange traded fund. These exchange traded funds are used to track indexes as closely as possible, since investors cannot actually buy an index outright.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.