Don Cromar, CIM, FCSI

604 718 7511

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs)

In Canada today there are over 270 ETFs representing over $60 billion in assets under management.  The growth of ETF products since their introduction with the first index-linked product on the TSX in 1990 has been nothing short of remarkable.

ETFs offer investors the following benefits:

  • Intraday liquidity on the stock exchange
  • Low cost of ownership
  • Transparency of holdings
  • Tax efficiency
  • The ability to target specific sectors, countries, and asset classes

 

ETF’s can be effectively utilized as the core of an investment portfolio, as well as to make tactical investments.  For example, an investor might want exposure to Canadian blue-chip stocks, so a core investment in the index tracking TSX 60 Index ETF would achieve that.  That same investor may want to overweight exposure to metals and minerals, so using an ETF, they can own the metals index.  The ability to make core investments in specific markets and satellite investments in specific sectors is what makes ETFs so attractive to investors and portfolio managers.

There are a number of ETF providers in Canada now as well as a number of online resources available to investors.

iShares Canada www.ishares.ca
Invesco  www.powershares.ca/etf
First Asset ETFs www.firstasset.com
Bank of Montreal www.bmo.com/etfs
Vanguard Canada www.vanguardcanada.ca
Horizons ETFs www.HorizonsETFs.com
RBC Asset Mgmt http://funds.rbcgam.com/etfs/

For screening and research of ETFs, I recommend:

www.morningstar.ca

www.TMXmoney.com/etfscreener

 

For more information on investing in ETFs and/or the PI ETF Model Portfolios, please call or e-mail me today.

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