Canadian Exchange Traded Funds (ETFs)



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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.

Bond ETFs:

Market ETFs/ Index ETFs:

Dividend ETFs: Income 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.

 

Valuation: 20 ETFs trading below book value | 12 ETFs with low PE Ratios | ETFs overvalued according to P/B ratio

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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.