4. Looking at these numbers alone, XEQT seems like a better choice. They include; Depending on where you trade, the cost of trading an ETF can be more than the savings from management fees. All of the choices mentioned above offer something premium and robust annual returns. The question really everyone is looking for is – how diversified is your Investment Portfolio? The number of ETFs on the TSX and on all other world exchanges beyond Toronto, has soared in recent years. XAW – XAW is an index fund that tracks the world stock market (excluding Canada). Marriott International is a worldwide operator, franchisor, and licensor of hotel, residential and timeshare properties under various brand names at different price and service points. Sun, Dec 6, 10:30 AM, Zacks Commodity ETFs and industry ETFs are quite similar in that they target specific areas of the market. Now, that’s excellent returns over a decades time. In this case, let’s consider some of the best and well knows Canadian ETFs – VFV, XUS, VCN, VBAL, ZSP. Below Book Value, 10 Canadian Stocks VAB – Legacy here. Below List is the “Top Holding” in the SCHD ETFs Portfolio: As you can see from the below screenshot, this ETF is well diversified with not much concentration into one sector, but in fact, stretching itself to a couple of sectors and not many IT stocks weightage. Overall Portfolio Composition is 100% in Stocks and 0% in Bonds which is good for the growth investor in mind. To Analyst Targets, 25 S.A.F.E. You just can’t invest today and expect rock-solid returns in 6 months. Once you have a decent-sized portfolio then you can probably diversify. If you are keen on turning your portfolio into cash flow, the fund on large companies brings a stable dividend. Socially Responsible Dividend Stocks, 10 Dividend Bargains You Can Co.'s business consists of the following two business segments: MSS segment and energy segment. ZAG – ZAG is from the BMOs bond component, and is the currently recommended bond index by Canadian Couch Potato. These are all blue-chip companies as well, so the growth of your money is assured over time, but all you need is patience after investing your money. Annual Dividend Yield: N/A Host Hotels & Resorts is an S&P 500 company and is the largest lodging REIT, with 80 luxury and upper-upscale hotels (75 properties in the U.S. and 5 … 3-month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of different ETF issuers with ETFs that have exposure to Canada. Just these two. Again it all depends! The gold ETFs with the best 1-year trailing total return are DBP, GLDM, and SGOL. I’ve considered 5 years as it is a good placeholder to compare returns over time. 45 USD per share with a PE Ratio (TTM) of 56.85. Mutual funds tend to incur more capital gains taxes over ETFs due to their structural differences. The Management Expense Ratio (MER) is the combined total of the management fee, operating expenses and taxes charged to a fund during a given year expressed as a percentage of a fund’s average net assets for that year. And like the stock, an ETF has its own symbol with information on intraday price which is readily available during the trading day. The ETF also yields a dividend of 0.71% annually which is decent, but that all matters is the growth which is good. These are debt securities backed by the credit power of the bank handing it out. You can find the SCHD ETFs Market Returns in the below screenshot: As you can see from the screenshot above, the overall market returns of the SCHD ETF have been fairly consistent and excellent in fact with double-digit returns since inception. Also, look at the second screenshot above, the dividends are identical too, with ZSP having a slight edge over VFV by a margin of 0.02%. ETF issuers are ranked based on their aggregate 3-month fund flows of their ETFs with exposure to Canada. My actual ETF picks are ZLB + XIT (Canada), VGT + IJR (US), SCZ (foreign developed), XSOE (foreign emerging), ZAG + CPD (bonds and preferred shares). Do not enter the markets with FOMO (Fear of Missing out). Be consistent, track your goals and be focused is all I can say. But an ideal ETF Basket will contain good exposure in proportions to all of the above markets. Seeks to provide investment results that correspond to the total return of a broad range of publicly-traded companies in the US. No! In simple terms, ROI from the investment money you pool in. This makes perfect sense, as the reason for investing is to gain a specific type of exposure and for Canadian ETFs, this will be determined by the index it tracks. Style ETFs follow an investment procedure or market capitalization priority like the large-cap value or small-cap growth. VAB is an excellent pick for your RRSPs. Portfolio Diversification and Risk Management, Nonetheless, ETF operation costs are cheaper, Depending on where you trade, the cost of trading an ETF can be more than the, As you all might know by now, ETFs are a pool of stocks (usually hundreds). Consider kicking the tires of the below ETFs. Consider this, even if you start investing $500 or $1000 every month into Microsoft stock alone, you’ll reach a good healthy lump sum portfolio by the end of the next 5 years. Vanguard S&P 500 ETF seeks to track the performance of a benchmark index that measures the investment return of large-capitalization stocks. SCHD Equity Fund pays out very good dividends as you can see from the screenshot below. These are developed to grant a pathway to asset markets with the added advantage of creating little or short-term capital profits taxes. It was developed to follow foreign markets, like the Hang Seng index in Hong Kong or Japan’s Nikkei Index. Use our ETF Themes to find ETFs you are looking for. Do remember to always check out the Investor Relations Page of the company to understand the business and company fundamentals in detail before making that investment. Also, XIC’s dividend is a bit higher than VCN as well. Market Capitalization of Indexed Companies: small, mid, large, Issuer: BMO Asset Asset Management 11. S&P 500, Forgotten S&P 500 Giants: The title of this post is “Top Canadian ETFs” and #3 FZROX is not an ETF (it’s a mutual fund) and Canadians can’t buy US mutual funds. MER: 0.03 Furthermore, ETF makes it easy for you to transfer money between asset classes including stocks, commodities or bonds. You can see the market summary and the financial screenshot of Vanguard S&P 500 ETF since mid of 2015 below. Look at the above 5-year growth chart of SPY ETF, as you can clearly notice the growth of this ETF has been tremendous and today the stock is trading at $328 USD. But if you ask me, I will definitely recommend you going with the Individual blue-chip stocks. A good low expense MER ratio is generally considered to be around 0.5% to 0.75% for an actively managed portfolio, while an expense ratio greater than 1.5% is considered to be high. 7. Description: Replicates performance of the S&P/TSX 60 Index The tax on qualified dividends is between 5 and 15%, while the unqualified dividend is subject to the same tax rate as that of your income. The flexibility of ETFs affords you the benefit of making prompt investment decisions. You can read my complete review on VGRO by clicking here. HORIZONS ETFS ANNOUNCES FINAL VALUATIONS FOR CAN. Market Capitalization of Indexed Companies: small, mid, large. XEC – iShares Emerging Markets ETF. TSX SYMBOL: XUU I’ve compiled the below list by going through numerous Reddit forums and discussions with active investors and Canadians overtime over preference and selections. Make sure you don’t just leave the money in the bank account and make it work for you against inflation. Also, the P/E ratio of this ETF stands at 21.38 which is good and not expensive. 1. For example: Say you have $10K, why don’t you invest that systematically every month, making sure even if the market crashes your investments are averaged out. Investing in the US S&P 500 Stock Market Index ETFs will not only make your portfolio more robust and better yields but will also help your investments grow that much faster. Inverse ETFs are more suited to veteran investors. Vanguard ETFs ® are managed by Vanguard Investments Canada Inc., an indirect wholly-owned subsidiary of The Vanguard Group, Inc., and are available across Canada through registered dealers. That’s what my new “Understanding ETFs” video blog series is all about. Pros and Cons. Unlike conventional mutual funds, an, Again, quick correction, I am not saying you should have exposure to all the above, Now, a single ETF can give you this exposure or you might want to pick multiple ETFs to play the safe game. Invests in stocks selected for fundamental strength relative to their peers, based on financial ratios. Always take the investment decisions on your own and don’t rely on any TikTok videos or YouTubers to decide your fate and choices. After all, the billion-dollar man and Investing guru Warren Buffet is investing in Gold as well. This ETF carries a risk rating of medium. 1. HST has around 87.7M shares in the U.S. ETF market. The Fund and the Index are rebalanced quarterly and reconstituted annually. This means the ETF is passively managed to track the Dow Jones U.S dividend 100 indexes. Issuer: Invesco, 1-Year Trailing Total Return: 36.5% AUM (in billions CAD): 1.7 Another question you might probably have is: Aren’t these stocks expensive compared to the ETF prices? If you’re a self-directed investor you should know what you’re doing. Don’t mind I’m not considering Facebook or Google here coz the majority of their income is from online ads and I’m personally not a great fan of their products or service as I genuinely feel they are not as well diversified as the above two considered. Invests in stocks in the S&P 500 Index, representing 500 of the largest U.S. companies (a majority of them are blue-chip companies), The goal of this ETF is to closely track the S&P 500 index’s return, which is considered a gauge of overall U.S. stock returns, It offers high potential for investment growth, share value rises and falls more sharply than that of funds holding bonds, More appropriate for long-term goals where your money’s growth is essential. But, that alone should not be a deal-breaker. Another angle of investor confusion is the settlement periods. Invests in stocks selected for fundamental strength relative to their peers, based on financial, Description: Replicates performance of the S&P Total Market Index, Description: Replicates performance of the S&P/ TSX Capped Composite Index, Description: Replicates performance of the S&P/TSX 60 Index, Market Capitalization of Indexed Companies: large, Description: tracks the performance of the FTSE Canada All Cap Index. With that said, either one is a great pick for your portfolio! Overall a well-diversified, balanced ETF for your investment portfolios. Nonetheless, ETF operation costs are cheaper compared to mutual funds. Tesla Vs. NIO: Which Stock Should You Buy? Be it an index fund such as the S&P 500 or any other sectorial fund of your choice. Be it Apple or Microsft or any Canadian Blue chip such as TD, RBC, CIBC bank, Fortis compared to any ETFs or S&P 500 Index funds. 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