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
Most precious-metal stocks dropped, along with stock markets, 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 uncertain times. In fact, in August 2020, gold jumped to over $2,000 U.S....
INVESCO SOLAR ETF, $70.35, is a buy for aggressive investors. The ETF (New York symbol TAN; buy or sell through brokers) tracks solar-related companies (including technology firms and utilities) listed on global exchanges.
The fund’s top holdings are SolarEdge Technologies (Israel; solar-power batteries), 11....
The fund’s top holdings are SolarEdge Technologies (Israel; solar-power batteries), 11....
Generally speaking, Canadians are blocked from buying mutual funds that are registered in the U.S. unless those funds are also registered with provincial securities commissions. (Moreover, some Canadian mutual funds are only available in a limited number of provinces.)
Investors in this country can, however, buy exchange-traded funds, or ETFs, listed on U.S....
Investors in this country can, however, buy exchange-traded funds, or ETFs, listed on U.S....
The profitability of banks is determined by a variety of factors including their business mix, lending profit-margins, loan and deposit growth, bad debts, and cost management. The top-performing banks consistently find the right balance between these factors, leading to strong results and stock market performance.
Lending margins drive profits
A key driver of bank profits is their net interest margins—that’s the difference between the interest rate that a bank charges on loans it issues and the interest rate that it pays to depositors and other providers of funds to the bank.
In a rising interest rates environment, banks normally manage to increase their net interest margins—as long as the increase in the cost of funding lags the higher pricing of their loans to customers.
Banks that derive a large portion of their revenues from their lending activities benefit relatively more from improving their lending margins....
Lending margins drive profits
A key driver of bank profits is their net interest margins—that’s the difference between the interest rate that a bank charges on loans it issues and the interest rate that it pays to depositors and other providers of funds to the bank.
In a rising interest rates environment, banks normally manage to increase their net interest margins—as long as the increase in the cost of funding lags the higher pricing of their loans to customers.
Banks that derive a large portion of their revenues from their lending activities benefit relatively more from improving their lending margins....
The performance of energy services companies is highly dependent on the willingness of their oil and gas production customers to spend money on exploration and new infrastructure. Note, energy producers spend more readily when they generate strong profits and cash flow.
Meantime, the higher oil and gas prices that prevailed for most of 2021 are now creating a return to pre-COVID-19 capital spending by many producers.
Energy producers are inclined to expand their operations and upgrade their facilities when they become more profitable....
Meantime, the higher oil and gas prices that prevailed for most of 2021 are now creating a return to pre-COVID-19 capital spending by many producers.
Energy producers are inclined to expand their operations and upgrade their facilities when they become more profitable....
This month we highlight an ETF that provides short exposure to the highly popular “disruptive growth” ARK Innovation ETF. We also look at a fund that aims to use a quantitative model to pick the top dividend-paying stocks.
TUTTLE CAPITAL SHORT INNOVATION ETF $43.66 (Nasdaq symbol SARK) provides an inverse (short) exposure to the stocks held by the popular ARK Innovation ETF (New York symbol ARKK).
This fund uses derivatives to let investors profit from a decline in the potentially overvalued and unprofitable “transformational” companies held by the ARK Innovation ETF in the electric vehicle, genomics, next-gen Internet and fintech segments.
This ETF effectively holds short positions in companies such as Tesla, Roku, Teladoc, Zoom, Coinbase and Spotify.
The fund launched on November 9, 2021; it charges a management fee of 0.75%....
Fortune magazine annually lists the top 500 global companies, based on various measures.
In 2021, seven Indian companies made the list, of which six are also held in the iShares India Index ETF. Top conglomerate Reliance Industries as well as several major Indian banks, were included on the list.
But India is also home to a number of highly ranked global information technology services companies—Infosys, Wipro, HCL Technologies, and Tata Consultancy—to name but a few of the largest firms included in the ETF portfolio.
These companies have been highly successful in reaching a global market.
Infosys, for example, now derives 60% of its revenue from North America, and Tata Consultancy, 50%.
The offshore outsourcing model (whereby well-qualified, but less expensive Indian workers deliver services to higher-priced developed markets) provides an attractive business model....
In 2021, seven Indian companies made the list, of which six are also held in the iShares India Index ETF. Top conglomerate Reliance Industries as well as several major Indian banks, were included on the list.
But India is also home to a number of highly ranked global information technology services companies—Infosys, Wipro, HCL Technologies, and Tata Consultancy—to name but a few of the largest firms included in the ETF portfolio.
These companies have been highly successful in reaching a global market.
Infosys, for example, now derives 60% of its revenue from North America, and Tata Consultancy, 50%.
The offshore outsourcing model (whereby well-qualified, but less expensive Indian workers deliver services to higher-priced developed markets) provides an attractive business model....
Apart from the immediate challenges caused by the COVID-19 pandemic, India faces a weak health-care system, poor infrastructure, and is only very slowly implementing much-needed economic and political reforms.
Still, the country is home to a number of top global companies with bright futures....
Still, the country is home to a number of top global companies with bright futures....
Banks and other financial services firms suffered in early 2020 as the pandemic took hold. But most have since bounced back—and many have hit new highs. Meanwhile, once economic activity returns to normal, the best of these should continue to be strong performers....
Canadian ETFs had another outstanding year in 2021. By the end of the year, there were 1,177 listed funds with a total asset base of $323 billion. On both counts, these were all-time highs.
The long-term growth in the industry continues to accelerate. Ten years ago there were only 236 ETFs listed in Canada, with a total asset base of $44 billion....
The long-term growth in the industry continues to accelerate. Ten years ago there were only 236 ETFs listed in Canada, with a total asset base of $44 billion....