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

Profit from our five sectors approach

The key point about profiting from the five sectors is that investors should spread their investments out across most if not all of them.
Note that there are a number of difficulties with recommending a model portfolio for all investors. The main one is that each… Read More

Here are new ETFs for Canadian investors

This month we highlight a diversified ETF launched by the Toronto-based alternative asset manager, Arrow Capital Management—and managed by WaveFront Global Asset Management.
The second fund is a short-dated U.S. dollar money market ETF launched by TD Asset Management.
WaveFront All-Weather Alternative Fund $20.39 (Toronto symbol WAAV) invests in a.. Read More

Germany has a solid outlook despite challenges

Germany was the only country in the Group of Seven (G7) wealthy nations to suffer an economic contraction in both 2023 and 2024. One reason was the country’s “debt brake.” In place since 2009, it sharply limits the government’s ability to borrow and run economy-stimulating… Read More

Pass on this ETF

ARK Genomic Revolution ETF $20.56 (CBOE symbol ARKG) invests globally in companies it expects to benefit from the development of products and services meant to improve the quality of life. Those firms are involved in molecular diagnostics, gene therapy, targeted therapeutics, agricultural biology, and stem cells.
The ETF launched in… Read More

Five ETFs for the five main sectors

A key rule of our three-part Successful Investor strategy is to spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; and Utilities).

This has two main benefits: a) It keeps you from… Read More

Here’s our CWA ETF Portfolio for April 2025

You Can See Our CWA ETF Portfolio For April 2025 Here.
Index funds are mutual funds that invest so as to match market-index performance. Exchange-traded funds (ETFs) hold baskets of stocks that represent stock indexes. ETFs trade on stock exchanges, just like stocks. stocks… Read More

Vietnam on the upswing

VANECK VECTORS VIETNAM ETF, $12.70, is a buy for aggressive investors. This emerging-markets ETF (New York symbol VNM) taps the country’s leading firms as well as foreign firms that get a significant share of their revenue from this Southeast Asian nation. The fund started up in August 2009. Its… Read More

Buy Taiwan’s top firms

ISHARES MSCI TAIWAN INDEX FUND, $48.48 is a buy for aggressive investors. The ETF (New York symbol EWT; buy or sell through brokers) gives you direct exposure to some of the top public companies of this East Asian powerhouse economy.
The fund’s largest holding is Taiwan Semiconductor at 20.9%… Read More

These ETFs offer you top-quality stocks

The major Canadian and U.S. stock markets, while still subject to volatility, continue to offer attractive prospects for investors—especially if you buy the top stocks. All in all, we think that if you can afford to stay in the market for several years or longer,… Read More

Physical gold is strong—but miners still lag

Physical gold and silver have been stellar performers over the past two decades even beating the S&P 500. And in fact, gold hit a new all-time high in February 2025 of $2,974 U.S. an ounce. Gold has also been much less volatile than the stock markets.
Investors… Read More

Cybersecurity firms forecast outsized growth

Hackers, organized crime, and even state-sponsored actors are increasingly targeting Internet-linked networks and databases to gain access to confidential information and extract large ransom payments.
The lucrative nature of online crime, combined with a relatively low risk of being caught, and a massive and growing target… Read More

The “Magnificent Seven” in retreat

Global equity markets made modest further gains in February—although the magnificent seven U.S. companies (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla) dragged the U.S. market down. Bonds had a good month as interest rates moved lower. Interest rates sensitive equities, such as utilities and… Read More

New ETFs for Canadian investors

This month we highlight six new funds that trade in the form of Canadian Depository Receipts (CDRs).
BMO Asset Management recently launched a series of single stock CDRs. These new funds complement a long list of already existing single stock CDRs available from CIBC. All CDRs… Read More

Sweden: Nordic leader with investor appeal

The free market-orientated economy of Sweden is complemented by a comprehensive welfare system. Despite the high taxes, the country ranks among the most competitive in the world and is home to a range of successful multinationals. One of these is Spotify—the global leader in music… Read More

ETFs are rapidly gaining market share on mutual funds

By the end of 2024, Canadian mutual funds had assets under management of $2.24 trillion, compared to the $519 billion in Canadian ETFs. However, the overall distribution of investable assets is changing rapidly.
Just five years ago, Canadian ETFs had $257 billion of assets under management,… Read More