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
There are ETF opportunities beyond Canada
Canadian investors, not unlike investors from most other countries, often have a bias for investing in their home markets. Familiarity with the domestic environment and companies—and a lack of familiarity with foreign markets—are big reasons.


And we agree with that bias—we still recommend that most Canadians hold the bulk of their portfolios in Canadian stocks, or ETFs that hold those stocks.


One good reason for that is Canadian taxpayers who hold Canadian dividend stocks get a special bonus....
2 min read
Pat McKeough
ETFs
New ETFs for Canadian investors
This month we look at two new ETFs. The first of those funds invests in companies involved in the management of private equity. The second is an actively managed ETF concentrating on companies that its managers believe will benefit from a rise in inflation.


NBI GLOBAL PRIVATE EQUITY ETF $32.79 (Toronto symbol NGPE) lets Canadians invest globally in publicly listed companies involved in private equity....
1 min read
Pat McKeough
ETFs
Brexit reduces uncertainty for investors in the U.K.
Investors don’t typically like uncertainty, and the prolonged negotiations about the future business relationship between the U.K. and the EU was a main contributor to weakness in both the country’s stock market and its currency over the last few years.


Between June 23, 2016—the day of the referendum—and December 24, 2020, when agreement on the future business relationship was reached, the main British stock market index declined by 11%....
1 min read
Pat McKeough
ETFs
The U.K. is looking beyond Brexit and COVID
Last year was a difficult one for the U.K. and its economy due the coronavirus pandemic. But the outlook for 2021 is much more positive.


The rebound will come from the easing of COVID-19 restrictions as the pandemic slows and from the government’s extensive stimulus spending....
4 min read
Pat McKeough
ETFs
Three financial ETFs—but just one is a buy
Banks and other financial services firms suffered in early 2020 as the pandemic took hold. But most have since bounced back. Meanwhile, once COVID-19 eventually subsides and economic activity strengthens, the best of these stocks should be strong performers. That’s all the more so because the pandemic has accelerated their shift to online services as a way of servicing clients while cutting costs.


Here are three ETFs—among them two Canadian-listed funds—that provide investors with exposure to U.S....
5 min read
Pat McKeough
ETFs
Don’t sell your best picks too soon
We generally advise against selling your best picks too soon. The same advice applies not only to your individual stock or ETF holdings, but also to your ETF portfolio, in general.


By holding on to your best ETFs or stock picks, you improve your chances of latching on to a market superstar—a stock or ETF that will wind up producing two or five or 10 times more profit than average....
1 min read
Pat McKeough
ETFs
Market outlook remains bright despite these risks
The overall outlook for stocks looks positive, powered by profit growth. Free-spending governments will initially drive that growth, with stronger consumer spending and business investment eventually taking over as drivers. Also, central banks are expected to keep interest rates low for some time to come.


Meanwhile, though, stock markets still face several risks.


First, COVID-19 could remain a problem for longer than expected....
1 min read
Pat McKeough
ETFs
Pass on this ETF: NVESCO CEF INCOME COMPOSITE ETF
A closed-end funds has a fixed asset base invested in a portfolio of securities. The value of the fund’s assets rises and falls depending on how it invests its funds. The units of the closed-end fund trade like stocks, and most often on a stock exchange.


Those units may trade above the per-unit value of the investments the fund holds....
1 min read
Pat McKeough
ETFs
They offer top stocks outside the U.S.
We still feel that virtually all Canadians should have, say, 20% to 30% of their portfolio in U.S. stocks, or in ETFs holding those stocks. In fact, for some investors, that’s all the foreign exposure their portfolios really need. Still, international markets can add further diversification and provide exposure to some top global leaders.


Here we highlight two ETFs that hold high-quality international stocks—but without U.S....
3 min read
Pat McKeough
ETFs
Six ETFs to widen your global exposure
All of the major global stock markets fell with 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.


Here’s a look at four international funds that we believe are well-suited for your new buying....
7 min read
Pat McKeough
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