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:

  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
ETFs
Utilities are attractive right now
High interest rates boost bond yields—and their appeal with investors. Conversely, those high or rising rates can hurt the appeal of high-yield utilities, and their shares, since utilities are then forced to pay higher interest on their debt. However, with interest rates falling in Canada, and poised to fall in the U.S., the outlook for high-quality utilities is attractive for investors seeking high dividend yields and growth prospects.


Below we discuss two utilities ETFs....
3 min read
Pat McKeough
ETFs
Buy the best of Taiwan

ISHARES MSCI TAIWAN INDEX FUND, $55.27, is a buy for aggressive investors. The ETF (New York symbol EWT; buy or sell through brokers) gives you direct exposure to some of the top public companies of this East Asian powerhouse economy.


The fund’s largest holding is Taiwan Semiconductor at 23.8% of assets....
1 min read
Pat McKeough
ETFs
Six North American ETFs: 5 buys, 1 hold
The major Canadian and U.S. stock markets, while still subject to volatility, continue to offer attractive returns for investors—especially if you buy the top stocks. All in all, we think that if you can afford to stay in the market for several years or longer, now is a good time for new buying....
4 min read
Pat McKeough
ETFs
EVs will spur copper
GLOBAL X COPPER MINERS ETF, $47.22, 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 38 global mining and exploration firms....
1 min read
Pat McKeough
ETFs
These ETFs tap into precious-metal gains
Most precious-metal stocks dropped, along with the market, in March 2020. They then quickly reversed that trend to soar for investors, in part because of gold’s appeal as a “safe harbour” in times of economic uncertainty. In fact, in August 2020, gold jumped to over $2,000 U.S....
2 min read
Pat McKeough
ETFs
IT stocks offer rewards—and risk
The technology industry can be extremely profitable—for those companies that get it right. However, the industry is dynamic and highly competitive, leaving a graveyard full of failed startups and once successful companies that were overtaken by competitors. Investors in this segment need to be extremely knowledgeable about the companies and industry, or perhaps follow a less risky approach by investing in a broadly diversified technology ETF.


An important market component


Technology-focused companies make up a large part of the publicly listed equity market universe....
3 min read
Pat McKeough
ETFs
Beware agriculture’s market volatility
Despite the significant long-term growth potential in food demand, the prices of agricultural commodities are volatile and as a group have performed poorly over the past 17 years. Still, many of the top companies involved in the industry have done well and outperformed the S&P 500 since 2007.


Certainly, investors should note the high level of volatility and risk involved with both agriculture commodities and the shares of the producers....
2 min read
Pat McKeough
ETFs
Two new ETFs for Canadian investors

This month we look at new ETFs that use derivative instruments to target specific investment outcomes. The BMO U.S. Equity Buffer ETF aims to offer upside market gains, combined with limited protection against market declines. The Harvest Industrial Leaders Income ETF aims to supplement the income and yield of a portfolio of U.S....
1 min read
Pat McKeough
ETFs
Tourists returning to Vietnam spur its economy
Tourism has become one of the major segments of Vietnam’s economy in recent years, but the industry was severely disrupted by the COVID-19 pandemic. Today, the country’s tourism sector continues to recover following the reopening of its border to international tourists in March 2022.


The growth in the Vietnamese tourism industry has been impressive....
1 min read
Pat McKeough
ETFs
Investors can share in Vietnam’s export gains
The Vietnamese economy continues to expand steadily in the wake of the pandemic—with tourism playing a key role. Longer-term, it should also continue to attract foreign manufacturers looking to steer clear of any China-U.S. trade issues. Meanwhile, the country’s free-trade pact with the European Union came into effect in August 2020....
5 min read
Pat McKeough
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