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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The ETF launched in January 2008, holds $67.6 million of assets, and charges a high MER of 1.33%.
Since its inception, the fund has lost a startling 99.6% of its value....
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The best of these funds offer a diversifed group of stocks while charging you low management fees....
The ETF’s top holdings are Canadian Apartment REIT (15.4%), RioCan REIT (8.8%), Granite REIT (8.7%), Allied REIT (8.6%), Choice Props....
Meanwhile, even for our conservative investors, we caution against investing in bonds....
The major European economies struggled for many years, with slow growth and high debt levels. As a result, the euro lost a lot of value against the U.S. dollar, while European stocks lagged U.S. equities.
However, Europe’s prospects look to be improving....
The U.S. housing market is in the process of recovering from a sharp COVID-19-induced setback in February and March of this year. Low mortgage costs, limited housing supply, and only moderate job losses among middle and higher-income workers are the main reasons for the housing market’s strong rebound.
The U.S....
This month we look at two actively managed ETFs launched earlier this year by TD Asset Management. TD’s share of the the Canadian ETF market remains small, but the bank has increased its new offerings this year.
TD ACTIVE GLOBAL EQUITY GROWTH ETF $15.67 (Toronto symbol TGGR) aims to provide long-term capital growth for investors by focusing on companies with strong business models....
The month of August saw the strongest returns for U.S. technology, Internet, and growth stocks. The SPDR Tech Select ETF (XLK) gained 16.6%, and the Invesco Nasdaq 100 ETF (QQQ), 13.9%. U.S. Growth stocks as represented by the iShares Russell 1000 Growth ETF (IWF) also had a good month, with a 13.2% gain.
At the broad market level, the Vanguard Total World Stocks ETF (VT) gained 6.8% in the month, the Vanguard S&P 500 ETF (VOO), 9.2%, and the iShares MSCI Canada Equity ETF (EWC) ,6.2%.
The iShares Emerging Markets ETF (IEMG) lagged developed markets with a 5.1% gain....
The German economy is the largest in Europe and ranks among the top five globally. The country was an early adopter of COVID-19 containment efforts—and its healthy fiscal situation before the pandemic has let it unleash substantial economic supports and a recovery package....