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
Consumer defensive companies such as Walmart, Mondelez, Procter & Gamble, and Nestle provide basic goods that consumers need—even during a recession. It is therefore not surprising that these companies have relatively stable revenue and profit profiles and are able to maintain their dividends during tough economic times.
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.
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.
This month, we highlight a new actively managed global equity fund from AGF—albeit part of a larger mutual fund. The second is an actively managed ETF from Fidelity that takes long and short positions in stocks.
Vale SA is a major Brazilian company and one of the largest mining outfits in the world, with a market value of $76 billion.
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 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.
Brazil is one of the top 10 global economies, and it is richly endowed with a range of basic commodities.
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.
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.
Canadian ETF industry assets under management reached $616 billion at the end of January 2026—up by 5.4% from the end of December 2025 and setting a new record high level. Net inflows in the month were $19.5 billion—also a new monthly record.
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.
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.
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%.