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
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
ETFs
Taiwan is a global leader in a vital industry
Taiwan faces diplomatic isolation, an aging population, and ever-increasing export competition from China and other Asian countries. Meanwhile, though, it offers investors a highly developed free-market economy led by its globally recognized expertise in computer chip and electronics manufacturing....
5 min read
Pat McKeough
ETFs
ETFs remain popular with investors
New money continues to flow at a rapid pace into Canadian ETFs. In the first three months of 2021, those funds attracted $13.4 billion of new money. That brought total ETF assets up to $258.8 billion by March 31, 2021.


The bulk of the inflows this year moved into stock ETFs, with the funds that offer global exposure for investors attracting the most money....
1 min read
Pat McKeough
ETFs
Not all these ‘award-winning’ ETFs are buys
Each year, major industry associations such as Lipper and Fundata produce lists of award-winning mutual funds and ETFs. Here’s a close look at a few of their top winners.


As well, please check out the Supplement on page 60 That’s where we highlight factors contributing to top ETFs.


DYNAMIC ACTIVE GLOBAL DIVIDEND ETF $47.48 (Toronto symbol DXG; TSINetwork ETF Rating: Aggressive; Market cap: $1.2 billion) invests globally in firms that pay a dividend or are expected to pay a dividend....
4 min read
Pat McKeough
ETFs
Pass on this ETF
BMO Canadian High Dividend Covered Call ETF $17.80 (Toronto symbol ZWC) holds mostly high-quality Canadian stocks. The ETF, launched in February 2017, holds $985.2 million of assets, and has a MER of 0.72%. The fund has 75 stocks. Current top holdings include TD Bank, Royal Bank, BCE, CIBC, Manulife, and Enbridge....
1 min read
Pat McKeough
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