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How to choose ETFs for your investment portfolio

Published

2 years ago

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Canada’s ETF industry is still relatively small in comparison to its mutual fund arena: At the end of October 2022, ETF assets totalled $300 billion, a fraction of the $1.796 trillion in mutual fund assets. But the number of available ETFs has grown steadily over the past couple of decades, in Canada and around the world—and now investors have thousands to choose from.

Like mutual funds, ETFs are “baskets” of securities, assembled by investment professionals. A single ETF may hold shares in hundreds or even thousands of companies. ETFs can be very broad—tracking, or mimicking, an entire stock market—or very niche, focusing on a particular sector, asset type, commodity, geographical region or theme. ETFs can also hold other types of assets, including bonds, commodities, currencies and cryptocurrencies.

ETF investment strategies, asset mixes, risk levels and management fees can vary widely. How do investors pick from this veritable asset buffet? As with any kind of investment, it pays to do your research. Begin with a fund’s ETF Facts sheet—but don’t stop there.

Here’s your starter kit for ETF research.

  • How to evaluate ETFs based on financial reports
    ETF providers are required to issue several kinds of financial reports and documents, which investors can use to their advantage. We provide an overview of what’s available, how often reports are updated, where to find them, and what you can learn if you venture beyond an ETF’s fact sheet and prospectus.
  • Which type of ETF investor are you?
    No two investors are alike. In this article, we look at different needs, risks and attitudes—ranging from first-timers and newbies to more experienced balanced, conservative and aggressive investors—and the strategies, asset mixes and ETF types that may fit their goals and risk tolerances.
  • What seasoned investors look for in an ETF prospectus
    What is an ETF Facts sheet, and what’s inside an ETF’s long-form prospectus? We take a close look at these two documents, each one a treasure trove of details that can help you make an informed decision. We explain where to find ETF fact sheets and prospectuses, what they contain and what aspects to zero in on—plus other financial reports worth getting to know. We read the fine print, not so you don’t have to, but so you can know what to look for.

Explore ETFs even further

ETFs for different life stages

Now you can dig deeper into how ETFs might fit within your investment strategy. We have ideas for everyone from kids saving up for school (via their parents or guardians, of course) to retirees looking to build a resilient portfolio.

ETF investing strategies

How do you switch from mutual funds to ETFs—and should you? Can a single ETF serve as your entire portfolio? We’ve covered these questions and more.


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Investment

S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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1 day ago

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October 16, 2024

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX up more than 200 points, U.S. markets also higher

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6 days ago

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October 11, 2024

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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Economy

S&P/TSX composite little changed in late-morning trading, U.S. stock markets down

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1 week ago

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October 10, 2024

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TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.

The S&P/TSX composite index was up 0.05 of a point at 24,224.95.

In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.

The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.

The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.

The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.

This report by The Canadian Press was first published Oct. 10, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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