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

Two new ETFs for Canadian investors

This month we highlight two new Canadian-listed ETFs that focus on small and mid-sized U.S. companies. The first is managed by Global X, while the second is an actively managed fund from RBC.
Global X Russell 2000 Index ETF $26.96 (CBOE Canada symbol RSSX) invests in small-cap companies listed… Read More

Lower valuations add to telecoms’ appeal

Traditional telecommunications service providers, such as Telus and BCE, are trading at substantially lower valuations compared to other “infrastructure” type companies. This is not only true for Canadian companies, but also for U.S. and other similar companies in Europe.
Growth and profitability: Railways in the lead
In… Read More

E-commerce has lots of growth ahead

Commerce conducted online exploded in 2020 to 2021 as the COVID-19 pandemic limited consumers’ access to shopping malls and other traditional shopping outlets. When shoppers returned to the physical stores in 2022, the growth in e-commerce stalled, but the upward trend resumed in 2023.
The growth… Read More

Despite challenges, the U.K.’s future is bright

In recent years the country had to deal with their formal exit from the European Union, COVID-19, four different prime ministers, and a major financial market blowup. The latest change in government also delivered plans to increase government spending through borrowing and higher corporate taxes… Read More

Good time to add telecom exposure

Telecommunications form an integral part of the economic infrastructure. Strict licensing standards and high capital requirements result in considerable barriers to entry. Despite slow growth, many of the major telecommunication companies have steady cash flows, high levels of profitability, and rising dividends. Nevertheless, the main… Read More

Here’s a low-fee ETF that covers the globe

SPDR MSCI GLOBAL STOCK MARKET ETF $65.81 (New York symbol SPGM; TSINetwork ETF Rating: Aggressive; Market cap: $934.8 million) tracks the MSCI ACWI Index. Companies located in the U.S. are the largest component of the portfolio (66%), followed by Japan (5%), the U.K. (3%), Canada (3%), China… Read More

Pass on this ETF

One of the key attractions of exchange-traded funds is their lower fees compared to mutual funds. In addition, as more competitors entered the market, fees on many ETFs continue to drop.
One of the older U.S.-based funds with a large asset base and higher fees is… Read More

Online commerce keeps expanding

Online commerce grew steadily for a decade before the onset of COVID-19. It then took off in a major way. Still, as consumers returned to physical stores and workers returned to the office, that rapid growth slowed. Regardless, the long-term trend remains firmly positive, and… Read More

Hold off on this ETF

ISHARES S&P/TSX REIT INDEX ETF, $15.02, is a hold. The ETF (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) lets investors tap all 16 Canadian real estate investment trusts in the S&P/TSX REIT Index. Investors pay an MER of 0.61%, and the fund gives you a 5.5% yield.
The… Read More

Six low-fee global ETFs: 4 buys, 2 holds

Most top global markets have rebounded since their big drop at the outbreak of the pandemic. Going forward, we think the outlook remains positive for quality stocks. One way to profit from that—while cutting your risk—is to invest in top ETFs.
Here’s a look at four… Read More

More on the five investment ideas for 2025

Here’s a more in-depth look at the ETFs we looked at on pages 11 to 14—and how they can fit into your ETF portfolio.
Cutting the risk of high-flying stocks
Recommended: iShares S&P 500 3% Capped Index ETF (Toronto symbol XUSC)
The outstanding performance of large-cap U.S. companies over the… Read More

Two new ETFs for Canadian investors

Capital Group is a privately owned investment manager with global operations. The manager recently launched its first four ETFs in Canada. We highlight the global equity ETF, as well as the international equity ETF.
Capital Group Global Equity Select ETF $25.48 (Toronto symbol CAPG) invests globally in publicly listed… Read More

Canadian stocks are buys despite tariff risks

The Canadian economy ranks among the top 10 globally and is considered to be in the top 20 of the world’s most competitive economies. Notably, the prosperity of our country’s economy is highly dependent on exports to the U.S., its main trading partner. That means… Read More

More ETF investment ideas for 2025

Here are three more ETF investment ideas for 2025. See the Supplement on page 19 and 20 for more on these funds.
ISHARES GLOBAL INFRASTRUCTURE ETF $50.29 (Toronto symbol CIF; TSINetwork ETF Rating: Aggressive; Market cap: $572.1 million) invests globally in utilities and other companies that provide or… Read More

Your #1 ETF for 2025

VANGUARD INDUSTRIALS ETF $262.20 (New York symbol VIS; TSINetwork ETF Rating: Conservative; Market cap: $61.3 billion) invests in U.S. industrial companies. That includes stocks of companies that convert unfinished goods into finished durables used to manufacture other goods or to provide services. The ETF began trading on September… Read More

Two ETF ideas to bolster 2025 returns

Here we highlight just two investment ideas for 2025. The Supplement on page 19 provides more details on both and other ETF strategies.
ISHARES S&P 500 3% CAPPED INDEX ETF $45.52 (Toronto symbol XUSC; TSINetwork ETF Rating: Conservative; Market cap: $72.8 million) invests in large and medium-sized U.S…. Read More