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
Chile offers promise for aggressive investors
After a strong 2021 fourth quarter, the Chilean economy has likely slowed this year, amid higher inflation and interest rates. Meanwhile, the country faces challenges: the possibility of new COVID-19 variants, higher energy prices pushed up further by the conflict in Ukraine, and uncertainties around the recent election of left-wing candidate Gabriel Boric as president....
4 min read
Pat McKeough
ETFs
Agriculture ETFs tap expanding demand
With yearly revenue of over $4 trillion, the global agriculture industry offers enormous opportunities for firms ready to satisfy growing food demand.


Crop and food prices will continue to fluctuate from year to year—as we’ve seen with wheat and fertilizer exports disrupted from major producers Russia, Belarus, and Ukraine. However, it’s a good bet that global food production and consumption will continue to increase....
4 min read
Pat McKeough
ETFs
Pass on this ETF
BMO U.S. PUT WRITE ETF $14.36 (Toronto symbol ZPW) sells put options on a range of U.S. large-cap stocks to generate income for the ETF. These options give the put buyers the right to sell specific stocks to the ETF at a pre-determined price....
1 min read
Pat McKeough
ETFs
These gold ETFs have more gains ahead
For many investors, gold represents a “safe harbour” in these turbulent times. That’s reflected in the sharp price jumps we continue to see—most notably in the wake of the Russian invasion of Ukraine.


Meanwhile, we expect gold-loving markets in Asia and other emerging economies to rebound after the coronavirus....
3 min read
Pat McKeough
ETFs
Buy the best of Taiwan

ISHARES MSCI TAIWAN INDEX FUND, $62.12, 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 21.1% 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 subject to volatility, have moved back up since their initial COVID-19 drop. Nonetheless, we think that if you can afford to stay in the market for several years or longer, now is still a good time for new buying....
4 min read
Pat McKeough
ETFs
Vietnam on the upswing
VANECK VECTORS VIETNAM ETF, $19.00, is a buy for aggressive investors. This emerging-markets ETF (New York symbol VNM) lets you tap leading Vietnamese companies as well as foreign firms that get a significant share of their revenue from this Southeast Asian nation....
1 min read
Pat McKeough
ETFs
Here are some ways to assess an ETF’s risk
Investors looking for ETF gains—but with the least amount of risk—should ask these three key questions:
Is the ETF well diversified?


ETF portfolios that are well-diversified typically are less volatile and have a lower risk of capital loss.


There are three common ways that equity ETFs can diversify their risks....
3 min read
Pat McKeough
ETFs
U.S. housing: strong demand, low supply
The U.S. housing market—and homebuilders—recovered strongly from early 2020 when fears of a major COVID-19-induced catastrophe hung over the U.S. economy.


Multi-decade low mortgage rates, limited housing supply, and a recovering job market helped the recovery along....
3 min read
Pat McKeough
ETFs
Two new ETFs for Canadian investors
This month we highlight an ETF that targets “technology innovators” at a challenging time. We also look at a Canadian-listed ETF that invests in the U.S. corporate preferred securities market.


TD GLOBAL TECHNOLOGY INNOVATORS INDEX ETF $6.77 (Toronto symbol TECI) aims to invest in “technology innovators” that it sees as having high growth rates and are more profitable than their peers....
1 min read
Pat McKeough
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