Exchange traded funds (ETFs) are widely available in Canada.
There are many funds that are managed by Canadian companies and by Canadian subsidiaries of US or English banking corporations. Alternatively, most Canadians can access the large and growing ETF marketplace on the US exchanges. ETFs are funds that are comprised of groups of some investment (most often exchange traded stocks, but also bonds, commodities, short sales of stocks and much more) that function somewhat like a traditional mutual fund. The main difference that makes ETFs arguably much better than a mutual fund is they carry far lower management fees (MER), they are more liquid, and you can buy them yourself, easily in any quantity.
The global market for Exchange traded funds has been burgeoning over the last decade and this is no different in Canada. Canadians have access to many different ETFs and on this page we will attempt to give you some insight and, with time, catalogue each of them individually.
Types of ETFs available in Canada on the TSX
There are many different types and flavors of ETFs available on the TSX and many more available on the American exchanges (which most Canadians have access to). Keep in mind the tax advantages associated with perhaps buying a Canadian ETF in lieu of an American one (talk to you accountant if you are unaware of the many tax advantages of buying Canadian equities). This section will be populated with many articles about the various ETFs available.
- US Government Bonds: Treasury ETNs, Municipal (Muni) Bonds ETFs, TIPS
- Canadian Government Bond ETFs: Canada Savings Bonds, Real Return Bonds, Provincial Bonds, Municipal Bond ETFs
- Foreign Government Bond ETFs: emerging markets, PIIGS, high yield
- Corporate Bond ETFs: Long Term, Middle Term, Short Term, Junk Corporate Debt Bonds ETNs
Market ETFs/ Index ETFs:
- Emerging Markets: BRIC ETFs, Africa, China, or India ETFs
- Established Markets: Canadian Market ETFs, Foreign/International Markets:
- North America: Canada (TSX) and American (S&P 500, DOW Jones ETFs)
- Europe: Britain, Spain, France, German, Norway, Sweden, Russia ETFs
- Asia: Japan, Korea tracking ETFs
- Australian ETFs
- By Market Capitalization: Small Cap, Large Cap, and Mega CAP ETFs
Stock Sector ETFs: Short ETFs, Long ETFs, Ultra Bull or Bear ETFs (2x or 3x), VIX, Sentiment, Preferred Share ETFs
Sector & Industry ETFs: Financial ETFs (Banking, Real Estate, Insurance, REITs). Transportation, Communications, Utilities, Oil & Gas, Mining, Natural Resources, Manufacturing, Technology, Health Care, Biotech, Home Building
Commodity ETFs: Metals, Agriculture ETFs, Crude, Gold & Silver ETFs, Rare Earth Elements, Oil & Natural Gas ETFs, Water
FOREX: foreign Currency ETFs, BRIC
As you can see, ETFs cover just about every arena of international finance. If you are interested in a particular sector or area of global trade, but you do not have the funds, time or inclination to research individual stocks of other investment instruments - then there is likely an ETF or multiple ETFs that suit your profile. There are a number of screeners available and other research resources out there to determine which ETF is best for you.
- ETNs vs. ETFs: the difference and how this applies to Canadians
- Complete list of ETFs on the TSX
- Complete list of ETFs in the USA Part 1 | Part 2
- Some of the ETF Issuers who operate in Canada and/or issue ETFs that are commonly owned by Canadians are as follows: Claymore, SPDR, Powershares, Barclays, Direxion, ishares, BMO, Market Vectors, Horizons, COMEX, Betapro
- How to trade ETFs
- The dangers of Leveraged ETFs - the power of decay. Don't buy, don't short
- Top 100 Canadian Mutual Funds
- The Best ETFs for Canadians
- Top canadian ETFS by yield
Valuation: 20 ETFs trading below book value | 12 ETFs with low PE Ratios | ETFs overvalued according to P/B ratio
Other Alternatives: Call Options ,
Leveraged ETFs usually come with some language attached like inverse, bull, bear, ultra long, ultra short, plus. You should read the prospectus and be wary of these products, because they can be very dangerous instruments to trade with.
