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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:

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

ETFs

Pass on this ETF

Closed-end funds work with a fixed asset base invested in a portfolio of securities. The value of their assets rises and falls depending on how they invest. Their units trade like stocks, and most often on a stock exchange.

They may trade above the per-unit value of the investments they hold—or, as brokers say, “at a premium” to their net asset value....

1 min read

Pat McKeough

ETFs

Inflation fears add to their appeal

While inflation pressures appear to be rising, consumer prices have seen only modest increases so far. Still, factors leading to a sharper rise may be building. They include today’s very low interest rates and the massive spending and borrowing by governments around the world to inject money into the economy....

3 min read

Pat McKeough

ETFs

This solar ETF is a buy

INVESCO SOLAR ETF, $77.67, 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 Enphase Energy (U.S.: home solar systems) at 10.5%; SolarEdge Technologies (Israel: solar-power batteries), 10.2%; Xinyi Solar (China: solar panels), 6.8%; First Solar (China: solar panels), 6.4%; and Sunrun Inc....

1 min read

Pat McKeough

ETFs

Buy the best of Vietnam

VANECK VECTORS VIETNAM ETF, $19.81, is a buy for aggressive investors. This emerging-markets ETF (New York symbol VNM) lets you tap leading Vietnamese companies and foreign firms that get a significant share of their revenue from this Southeast Asian nation.

Your top holdings through this ETF are Vingroup (conglomerate), 9.1%; No Va Land Investment, 8.8%; Hoa Phat Group (iron and steel), 7.6%; Vietnam Dairy, 6.8%; Vinhomes (real estate), 6.4%; and the Bank for Foreign Trade of Vietnam, 5.3%....

1 min read

Pat McKeough

ETFs

These two ETFs offer top stocks, low fees

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, ETFs, listed on U.S....

2 min read

Pat McKeough

ETFs

The best ETFs will share these characteristics

Exchange-traded funds offer a simple and convenient way for investors to access a variety of investment strategies. From plain vanilla, index-tracking funds focused on stocks, to high-risk, highly leveraged ETFs focused on the most volatile commodities, all are available to investors....

3 min read

Pat McKeough

ETFs

Remember chasing high yields carries risk

Low interest rates have pushed income-seeking investors to search for high yield outside of traditional fixed-income investments. For many of these investors, stocks with high yields look increasingly attractive—and the best of those stocks (or ETFs that hold them) are buys for current income, as well as the potential for capital gains.

In some cases, however, a high yield may be a warning sign that all is not well with a company and that future dividend payments are at risk....

2 min read

Pat McKeough

ETFs

Equities continued to rise in April

Equity markets in the developed world, especially North America, continued their upward climb in April while developing markets, especially India, struggled. REITs had another strong month, while selected commodities and miners also gained ground.

At the broad market level, the Vanguard Total World Stocks ETF (VT) gained 4.3% for the month....

1 min read

Pat McKeough

ETFs

New ETFs for Canadian ‘crypto’ investors

This month we take a look at new cryptocurrency ETFs from CI First Asset.

CI Global Asset Management recently launched the third Canadian ETF that invests in the cryptocurrency Bitcoin, the CI Galaxy Bitcoin Fund $10.11 (Toronto symbol BTCX)....

1 min read

Pat McKeough

ETFs

This chipmaker is the gem in Taiwan’s high-tech crown

Taiwan Semiconductor Manufacturing (ADR symbol TSM on New York), is the world’s largest dedicated contract semiconductor (computer chip) manufacturer with a market capitalization of $552 billion. In 2020, it had 510 different clients, manufactured 11,617 different products using 281 distinct technologies....

1 min read

Pat McKeough

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Inner Circle Pro subscriber

Browse Premium Topics

Cannabis

Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

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.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Penny Stocks

A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Wealth Management

Wealth management is the practice of putting your savings to work so that it continues to grow over your lifetime and will also benefit your heirs. Wealth management encompasses many different areas of investing like long term investment planning and retirement planning.

Mining Stocks

Mining stocks are investments in companies that produce or explore for minerals. Some of these minerals include uranium, coal, molybdenum (which is used in steelmaking), copper, silver and gold. They are affected by fluctuating commodity prices in addition to their own business and operating risks.

How To Invest

Pat McKeough has been making investing for beginners simple—and profitable—by helping investors make big gains for more than 25 years. His advice to beginning investors is the same as it is for all investors: buy high-quality, mostly dividend paying stocks (or ETFs that hold these stocks) and evenly spread your investments over the five main economic sectors (Resources, Manufacturing, Finance, Utilities and Consumer). Pat also believes investors should avoid stocks in the broker/media limelight and focus on those with hidden or little-noticed assets.

Energy Stocks

What are energy stocks?

Businesses that work in the extraction, refining and delivery of energy sources such as natural gas, oil, uranium and coal, are considered energy stocks.