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
When we last wrote about cannabis companies and ETFs in mid-2018, Canada was about to become the second country in the world to legalize recreational marijuana.
In the months to follow, investor enthusiasm propelled stock prices to very high valuations in relation to their market caps....
In the months to follow, investor enthusiasm propelled stock prices to very high valuations in relation to their market caps....
October turned out to be a great month for all kinds of riskier assets. Top performers were commodities, with oil and copper leading the way. Precious metal producers also made strong gains while the energy and commodity-heavy Canadian indexes were spurred by those gains....
This month we look at the first crypto ETF that steers clear of direct investment in cryptocurrencies, and a Canadian ETF focusing on emerging market equities.
Eight months after Canada saw the launch of the first cryptocurrency ETFs, ProShares managed to get approval from U.S....
Eight months after Canada saw the launch of the first cryptocurrency ETFs, ProShares managed to get approval from U.S....
Some of the most prominent luxury goods retailers in the world are held in the iShares MSCI France ETF’s portfolio.
LVMH, the largest luxury goods retailer, owns brands such as Louis Vuitton, Dior, Moet & Chandon, Krug, and Bulgari.
Kering (Gucci, Saint Laurent, and Bottega brands), Hermes, Essilorluxottica (Ray Ban), and L’Oreal are some of the other luxury goods retailers held in the portfolio.
Luxury goods retail sales dropped sharply in 2020 with some estimates indicating a 25% decline compared to 2019.
The closing of non-essential shopping in many important luxury retail locations as well as the disruption of leisure travel and accompanying duty free sales, contributed to the massive hit to luxury goods sales.
With consumers forced to stay at home, online retail sales of luxury goods also increased sharply with an estimated 209% increase compared to the previous year.
Still, between 2016-2019, the market for luxury good had been growing at a solid rate of 8% per year; and reached an estimated global annual value of around $300 billion in 2019, with the single largest market, the U.S.
The fastest-growing markets in the world are in Asia, with the Chinese market expected to make up more than 10% of global luxury sales by 2025.
Unsurprisingly, the top luxury firms continue to do well....
LVMH, the largest luxury goods retailer, owns brands such as Louis Vuitton, Dior, Moet & Chandon, Krug, and Bulgari.
Kering (Gucci, Saint Laurent, and Bottega brands), Hermes, Essilorluxottica (Ray Ban), and L’Oreal are some of the other luxury goods retailers held in the portfolio.
Luxury goods retail sales dropped sharply in 2020 with some estimates indicating a 25% decline compared to 2019.
The closing of non-essential shopping in many important luxury retail locations as well as the disruption of leisure travel and accompanying duty free sales, contributed to the massive hit to luxury goods sales.
With consumers forced to stay at home, online retail sales of luxury goods also increased sharply with an estimated 209% increase compared to the previous year.
Still, between 2016-2019, the market for luxury good had been growing at a solid rate of 8% per year; and reached an estimated global annual value of around $300 billion in 2019, with the single largest market, the U.S.
The fastest-growing markets in the world are in Asia, with the Chinese market expected to make up more than 10% of global luxury sales by 2025.
Unsurprisingly, the top luxury firms continue to do well....
The May 2017 election of Emmanuel Macron as France’s new president promised a turnaround for the French economy. Despite some early successes, the COVID-19 pandemic slowed progress on the economic front. But the long-term outlook for the economy is positive as it continues to recover in a post-pandemic world.
France is home to several of the top luxury goods companies in the world....
France is home to several of the top luxury goods companies in the world....
Large ETFs can generate additional income by lending (or “renting”) shares held in the portfolio to counterparties. These counterparties are usually large financial institutions or dealer-brokers that allow clients to sell shares of a particular company short. The counterparty will be required to deposit collateral (mostly cash) with the ETF and also pay “rent” for the term that the security is on loan.
The ETF generates income from the collateral by placing it in a money market fund as well as from the negotiated “rent” for the lending of the shares....
The ETF generates income from the collateral by placing it in a money market fund as well as from the negotiated “rent” for the lending of the shares....
Telecommunications form an integral part of economic infrastructure. But at the same time, strict licensing standards and high capital requirements result in considerable barriers to entry for new rivals. Meanwhile, top telecommunication companies offer strong cash flow, attractive p/e’s, rising dividends and growth prospects.
Below we take a closer look at three ETFs that hold companies involved in the telecommunications industry....
Below we take a closer look at three ETFs that hold companies involved in the telecommunications industry....
VANECK VECTORS SOCIAL SENTIMENT ETF $25.90 (New York symbol BUZZ) follows the BUZZ NextGen AI US Sentiment Leaders Index. This index tracks the 75 large-cap U.S. stocks showing what it sees as the highest degree of “positive investor sentiment.”
The ETF aims to analyze millions of investment-related messages and posts on sites like Reddit, Stocktwits, Twitter using what it believes is sophisticated computer software....
The ETF aims to analyze millions of investment-related messages and posts on sites like Reddit, Stocktwits, Twitter using what it believes is sophisticated computer software....
Companies involved in the marijuana business for the most part peaked in late 2018 when Canada legalized the recreational use of cannabis. Many spiked back up in February 2021, spurred by a frenzy centred around Canopy Growth—and expectations for broader U.S. legalization....
SHARES CHINA LARGE-CAP ETF, $40.28, is a hold for safety-conscious investors. The ETF (New York symbol FXI; buy or sell through brokers) tracks the 50 largest, most-liquid Chinese stocks. Investors pay a high 0.74% MER. The units yield 2.1%.
Top holdings for the $4.5 billion fund are Meituan Dianping (group buying/food delivery), 9.7%; Tencent (Internet), 9.0%; Alibaba (e-commerce), 8.9%; China Construction Bank, 5.4%; and Wuxi Biologics, 4.4%.
Chinese stocks are down lately as the government has introduced strict new regulations around fintech stocks, data sharing among tech firms and online platforms and, most recently, online learning firms.
These surprise regulations directed at private Chinese companies are aimed at promoting social policies and imposing more government control over various sectors....
Top holdings for the $4.5 billion fund are Meituan Dianping (group buying/food delivery), 9.7%; Tencent (Internet), 9.0%; Alibaba (e-commerce), 8.9%; China Construction Bank, 5.4%; and Wuxi Biologics, 4.4%.
Chinese stocks are down lately as the government has introduced strict new regulations around fintech stocks, data sharing among tech firms and online platforms and, most recently, online learning firms.
These surprise regulations directed at private Chinese companies are aimed at promoting social policies and imposing more government control over various sectors....