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
The units of ETFs trade on the public markets, just like normal stocks. Each of these units represents a share of all the assets (and liabilities) held by the ETF.
At the end of each trading day, the administrator of the ETF calculates the value of all the assets held in the ETF and deducts the liabilities. The net asset value (NAV) per share is then made available to the public.
Most of the trading in ETF units takes place on the stock market, such as the Toronto Stock Exchange, where investors buy and sell the units.
At the end of each trading day, the administrator of the ETF calculates the value of all the assets held in the ETF and deducts the liabilities. The net asset value (NAV) per share is then made available to the public.
Most of the trading in ETF units takes place on the stock market, such as the Toronto Stock Exchange, where investors buy and sell the units.
Artificial intelligence (AI) and AI-related software stocks soared from the start of 2024 to around the beginning of 2026. After that, many moved down on investor fears of an “AI bubble.” Some investors fear that the technology won’t live up to the hype and will fail to justify the big spending by these companies.
Meanwhile, AI has improved very rapidly in recent years, to the point that investors worry it will be able to replace current processes that require humans in tech and other industries. That has led to major selloffs for many Software as a Service (SaaS) companies—a decline that some insiders now call the “SaaS-pocolypse.”
However, we think the top software stocks overall are still in line for gains; they can profit all the more by integrating AI and its applications into the products they sell to their customers as well as applying AI to speed up and streamline their operations.
Meanwhile, AI has improved very rapidly in recent years, to the point that investors worry it will be able to replace current processes that require humans in tech and other industries. That has led to major selloffs for many Software as a Service (SaaS) companies—a decline that some insiders now call the “SaaS-pocolypse.”
However, we think the top software stocks overall are still in line for gains; they can profit all the more by integrating AI and its applications into the products they sell to their customers as well as applying AI to speed up and streamline their operations.
VANGUARD FTSE EMERGING MARKETS ETF $46.98 (Toronto symbol VEE; TSINetwork ETF Rating: Aggressive; Market Cap: $3.8 billion) tracks the FTSE Emerging Markets All Cap China A Inclusion Index, and includes large, medium, and small companies listed on the public markets of developing countries.
Technology companies form the largest part of the portfolio (29%), while Financials (21%), Consumer Goods (11%), Industrials (9%), Materials (8%), and Energy (5%) are other key segments.
Technology companies form the largest part of the portfolio (29%), while Financials (21%), Consumer Goods (11%), Industrials (9%), Materials (8%), and Energy (5%) are other key segments.
One of the key attractions of exchange-traded funds is lower fees compared to mutual funds. In addition, as more competitors enter 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 $56.64 (New York symbol EWC). This fund started in 1996 and invests in larger Canadian companies. It has an asset base of $4.7 billion U.S. and a high 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, $49.41 (Toronto symbol XIU). This ETF started up in 1990. It tracks the S&P/TSX 60 Index and has assets of $21.3 billion under management.
One of the older U.S.-based funds with a large asset base and higher fees is the iShares MSCI Canada ETF $56.64 (New York symbol EWC). This fund started in 1996 and invests in larger Canadian companies. It has an asset base of $4.7 billion U.S. and a high 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, $49.41 (Toronto symbol XIU). This ETF started up in 1990. It tracks the S&P/TSX 60 Index and has assets of $21.3 billion under management.
One of the elements of our three-part Successful Investor strategy is to spread your money across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities).
This has two main benefits: a) It keeps you from investing too heavily in any industry or sector that is headed into a period of big losses; and b) By spreading your investments out more widely, it also improves your chances of latching onto a market superstar—a stock that will wind up producing two or five or 10 times more profit than average.
Here, we discuss ETFs that represent two of the main economic sectors, while the section starting on page 53 represents the remaining three sectors with its look at three additional ETFs. The supplement starting on page 59 provides more information on our five-sectors approach, and the supplement on page 60 delves into big market upswings.
This has two main benefits: a) It keeps you from investing too heavily in any industry or sector that is headed into a period of big losses; and b) By spreading your investments out more widely, it also improves your chances of latching onto a market superstar—a stock that will wind up producing two or five or 10 times more profit than average.
Here, we discuss ETFs that represent two of the main economic sectors, while the section starting on page 53 represents the remaining three sectors with its look at three additional ETFs. The supplement starting on page 59 provides more information on our five-sectors approach, and the supplement on page 60 delves into big market upswings.
VANECK VIETNAM ETF, $17.31, is a buy for aggressive investors. This emerging-markets ETF (New York symbol VNM) taps the country’s leading firms as well as foreign firms that get a significant share of their revenue from this Southeast Asian nation. The fund started up in August 2009. Its MER is 0.68%.
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%.
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%.
ISHARES MSCI TAIWAN INDEX FUND, $70.92, 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 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 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%.
Major Canadian and U.S. stock markets remain volatile, but they still continue to offer attractive prospects 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. We see ETFs as one way for you to profit from the long-term stock market rise while at the same time cutting your risk.
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.
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.
You Can See Our Exchange-Traded Funds Portfolio For April 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.
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.
Companies involved in the production of energy have performed well in recent years, beating the global equity market index, although that performance came with a higher level of volatility (see table below).
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.
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.