Topic: How To Invest

What is Pat’s commentary for the week of August 18, 2020

Article Excerpt

ETFs (Exchange Traded Funds) have been around since 1993, with the launch of the S&P 500 Trust ETF. By 2002, 102 ETFs were trading; the number hit 1,000 by the end of 2009. As of the end of 2019, there were 7,000. When we started covering ETFs in our Canadian Wealth Advisor in the early 2000s, we singled them out as the most benign investment innovation ever offered to investors. After all, they provided a “plain vanilla” alternative to mutual-fund investing, at a deep discount to conventional mutual fund fees. Instead of making changes as they saw fit, ETF portfolio managers simply try to mirror the performance of a market index. By cutting out active management, the ETF’s investors could cut their management expenses from as much as 2.5% to a fraction of 1%. The ETF universe has changed a great deal since then. You can still get plain vanilla ETFs, and the MERs are cheaper than ever. One of the best is…

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