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
HORIZONS ACTIVE A.I. GLOBAL EQUITY ETF $27.43 (Toronto symbol MIND) invests in major global equity indexes primarily available through North American-listed ETFs.
However, the fund’s portfolio manager is, in fact, a computer. It picks indexes through a process called “adaptive artificial intelligence.” Essentially, it aims to spot patterns in market indexes by continuously analyzing market data....
However, the fund’s portfolio manager is, in fact, a computer. It picks indexes through a process called “adaptive artificial intelligence.” Essentially, it aims to spot patterns in market indexes by continuously analyzing market data....
Cybercrime can have major consequences for individuals, corporations, and governments, alike; the recent, highly publicized cyberattacks on Colonial Pipeline and meat producer JBS provide good examples (see box on page 82). Meanwhile, more people working and gaming from home has also spurred a jump in cyberattacks....
ISHARES CHINA LARGE-CAP ETF, $41.36, is now 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 2.0%.
Top holdings for the $4.5 billion fund are Alibaba (e-commerce), 9.2%; Tencent (Internet), 9.2%; Meituan Dianping (group buying/food delivery), 8.6%; China Construction Bank, 5.4%; and Wuxi Biologics, 4.6%.
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 Alibaba (e-commerce), 9.2%; Tencent (Internet), 9.2%; Meituan Dianping (group buying/food delivery), 8.6%; China Construction Bank, 5.4%; and Wuxi Biologics, 4.6%.
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....
All of the major global stock markets fell at the initial outbreak of COVID-19. But many top markets have since rebounded. We think the outlook remains positive for quality stocks, and one way to profit from that—while cutting your risk—is to invest in quality ETFs....
Smaller companies can generate higher returns than their larger counterparts, but they are often riskier and less liquid, and may underperform for long periods.
Small stocks are also more volatile in times of unsettled or falling markets.
Still, if you focus on the best-quality small companies—or ETFs that hold those stocks—they can be a worthwhile addition to a well-balanced portfolio
Do small companies have an edge?
Small companies trading on U.S....
Small stocks are also more volatile in times of unsettled or falling markets.
Still, if you focus on the best-quality small companies—or ETFs that hold those stocks—they can be a worthwhile addition to a well-balanced portfolio
Do small companies have an edge?
Small companies trading on U.S....
Cryptocurrency is a form of digital, non-government-issued “money” that can be exchanged on the Internet without the intervention of a conventional bank or another intermediary.
In general, cryptocurrencies have underlying software code that enable their creation and allow users to verify and secure their transactions....
In general, cryptocurrencies have underlying software code that enable their creation and allow users to verify and secure their transactions....
This month we consider a unique ETF that buys carbon credits to offset the emissions of its holdings. Meanwhile, we look at a new Canadian energy ETF that has energy stock booster Eric Nuttall as a manager.
The Evolve S&P/TSX 60 CleanBeta FUND $21.09 (Toronto symbol SIXT) invests in the companies that are the constituents of the S&P/TSX 60 index.
What makes this fund different from other ETFs that track the same index is the objective to neutralize the carbon emissions of the fund holdings....
The Evolve S&P/TSX 60 CleanBeta FUND $21.09 (Toronto symbol SIXT) invests in the companies that are the constituents of the S&P/TSX 60 index.
What makes this fund different from other ETFs that track the same index is the objective to neutralize the carbon emissions of the fund holdings....
Tourism is an important economic industry in Mexico: pre-pandemic the segment directly accounted for 9% of GDP, and 6% of full-time paid employment.
The country is also a prominent global tourist destination, receiving 45 million international visitors in 2019, ranking 6th globally on the number of international visitors....
The country is also a prominent global tourist destination, receiving 45 million international visitors in 2019, ranking 6th globally on the number of international visitors....
The Mexican economy was hit by the pandemic, especially from a disastrous drop in international tourists as COVID-19 kept visitors at home. But the economy is now recovering as the U.S. rebounds. In fact, Mexican stocks have largely bounced back to pre-pandemic levels.
Here’s a look at an ETF that provides exposure to the top Mexican publicly listed companies.
ISHARES MSCI MEXICO ETF $47.88 (Nasdaq symbol EWW; TSINetwork ETF Rating: Aggressive; Market cap: $1.2 billion) tracks the performance of the largest publicly listed Mexican companies.
Consumer Defensive stocks account for 31% of its assets, while Telecommunication Services (22%), Financial Services (15%), Basic Materials (12%), and Industrials (10%) are other key segments.
The ETF holds a portfolio of 47 stocks; the top 10 holdings make up a large 64% of the portfolio.
They are America Movil SAB (Communications, 15.5%), Grupo Financiero Banorte (Financials, 9.7%), Fomento Economico Mexicano (Consumer Defensive, 9.5%), Walmart de Mexico (Consumer Defensive, 9.5%), Grupo Televisa (Consumer Cyclical, 4.2%), Cemex SAB (Basic Materials, 4.0%), Grupo Mexico (Basic Materials, 3.8%), Grupo Aeroportuario del Pacifico (Industrials, 2.8%), Grupo Aeroportuario del Sureste (Industrials, 2.5%), and Fibra Uno Administracion REIT (Real Estate, 2.3%).
The ETF’s assets have a heavy concentration in the top four holdings....
Here’s a look at an ETF that provides exposure to the top Mexican publicly listed companies.
ISHARES MSCI MEXICO ETF $47.88 (Nasdaq symbol EWW; TSINetwork ETF Rating: Aggressive; Market cap: $1.2 billion) tracks the performance of the largest publicly listed Mexican companies.
Consumer Defensive stocks account for 31% of its assets, while Telecommunication Services (22%), Financial Services (15%), Basic Materials (12%), and Industrials (10%) are other key segments.
The ETF holds a portfolio of 47 stocks; the top 10 holdings make up a large 64% of the portfolio.
They are America Movil SAB (Communications, 15.5%), Grupo Financiero Banorte (Financials, 9.7%), Fomento Economico Mexicano (Consumer Defensive, 9.5%), Walmart de Mexico (Consumer Defensive, 9.5%), Grupo Televisa (Consumer Cyclical, 4.2%), Cemex SAB (Basic Materials, 4.0%), Grupo Mexico (Basic Materials, 3.8%), Grupo Aeroportuario del Pacifico (Industrials, 2.8%), Grupo Aeroportuario del Sureste (Industrials, 2.5%), and Fibra Uno Administracion REIT (Real Estate, 2.3%).
The ETF’s assets have a heavy concentration in the top four holdings....
Smaller firms can sometimes generate higher returns than their larger counterparts, but they are often riskier, less liquid, and may underperform for long periods. One way to offset some of the risk is to focus on ETFs that hold top-quality small-capitalization companies....