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
VANGUARD FTSE GLOBAL ALL CAP EX CAN ETF $73.90 (Toronto symbol VXC; TSINetwork ETF Rating: Aggressive; Market cap: $3.09 billion) tracks the FTSE Global All Cap ex-Canada Index. Stocks are weighted according to their market capitalizations.
U.S. stocks account for 64% of the portfolio, followed by Japan (6%), the U.K. (4%), China (3%), Taiwan (2%), Switzerland (2%), France (2%), Germany (2%), and India (2%). Stocks from emerging markets make up about 10% of the portfolio.
Technology stocks (31%) have the biggest weight in the portfolio, while Financials (15%), Industrials (14%), Consumer Cyclical (13%), and Healthcare (9%), are other key segments.
U.S. stocks account for 64% of the portfolio, followed by Japan (6%), the U.K. (4%), China (3%), Taiwan (2%), Switzerland (2%), France (2%), Germany (2%), and India (2%). Stocks from emerging markets make up about 10% of the portfolio.
Technology stocks (31%) have the biggest weight in the portfolio, while Financials (15%), Industrials (14%), Consumer Cyclical (13%), and Healthcare (9%), are other key segments.
ProShares Short MidCap 400 ETF $17.04 (New York symbol MYY) provides daily inverse exposure to the S&P MidCap 400 Index—the ETF’s price will rise when the S&P 400 Index declines and vice versa.
We generally advise against short selling for many of the same reasons that we advise against options trading, leverage, currency speculation and bond trading. In all of these activities, it’s a rare investor who makes enough profit to offset the risk involved.
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. This reduces the percentage costs of this kind of trading. However, the trading costs still tend to eat up the invested capital.
We generally advise against short selling for many of the same reasons that we advise against options trading, leverage, currency speculation and bond trading. In all of these activities, it’s a rare investor who makes enough profit to offset the risk involved.
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. This reduces the percentage costs of this kind of trading. However, the trading costs still tend to eat up the invested capital.
Traditionally, the price of most stocks, and the ETFs that hold them, drop with broad market declines. However, certain segments generally perform better than the overall market in a correction.
Below, we highlight two ETFs focused on companies that produce and sell consumer staples. Those funds should, in theory, bounce back faster after a recession than investments focused on other economic sectors.
Meanwhile, the supplement starting on page 39 provides more information on the performance of the consumer staples sector relative to the broader stock market.
Below, we highlight two ETFs focused on companies that produce and sell consumer staples. Those funds should, in theory, bounce back faster after a recession than investments focused on other economic sectors.
Meanwhile, the supplement starting on page 39 provides more information on the performance of the consumer staples sector relative to the broader stock market.
GLOBAL X COPPER MINERS ETF, $88.16, 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 40 global mining and exploration firms. The fund launched in April 2010.
Canadian firms make up 36.0% of the ETF’s holdings. They also include companies based in the U.S. (10.0%), Japan (9.5%), China (9.2%), Australia (8.0%), Sweden (5.5%), Poland (5.4%), and the U.K. (5.3%). The fund charges an acceptable 0.65% MER.
The ETF’s top holdings include Lundin Mining, 6.1%; Sumitomo Metal, 6.1%; Boliden AB, 5.5%; KGHM Polska Miedz, 5.3%; Southern Copper, 5.2%; Freeport-McMoRan, 5.2%; Glencore, 4.9%; and Antofagasta, 4.9%.
Canadian firms make up 36.0% of the ETF’s holdings. They also include companies based in the U.S. (10.0%), Japan (9.5%), China (9.2%), Australia (8.0%), Sweden (5.5%), Poland (5.4%), and the U.K. (5.3%). The fund charges an acceptable 0.65% MER.
The ETF’s top holdings include Lundin Mining, 6.1%; Sumitomo Metal, 6.1%; Boliden AB, 5.5%; KGHM Polska Miedz, 5.3%; Southern Copper, 5.2%; Freeport-McMoRan, 5.2%; Glencore, 4.9%; and Antofagasta, 4.9%.
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. an ounce for the first time ever. The shares of gold miners also soared. Prices for the shiny metal then drifted down to about $1,800 as pandemic fears eased. Shortly after, they spiked to over $1,991 in March 2022 after Russia invaded Ukraine.
If you’re looking for ETFs with quality holdings and exceptionally low fees, then Pennsylvania-based Vanguard Group offers you strong options.
Vanguard is one of the world’s largest investment management companies. In all, it administers over $10 trillion U.S., spread across 441 mutual funds and ETFs. Here are two of its ETFs that we see as buys for you right now.
VANGUARD GROWTH ETF, $464.01, is a buy. The fund (New York symbol VUG; buy or sell through brokers) lets investors track the Center for Research in Security Prices U.S. Large Cap Growth Index. That broadly diversified index focuses on big U.S. firms.
Vanguard is one of the world’s largest investment management companies. In all, it administers over $10 trillion U.S., spread across 441 mutual funds and ETFs. Here are two of its ETFs that we see as buys for you right now.
VANGUARD GROWTH ETF, $464.01, is a buy. The fund (New York symbol VUG; buy or sell through brokers) lets investors track the Center for Research in Security Prices U.S. Large Cap Growth Index. That broadly diversified index focuses on big U.S. firms.
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.
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.
Here we highlight some of the key applications of robots in those commercial spaces.