By Jaclyn Law on December 14, 2023 Estimated reading time: 5 minutes
If you’ve never invested in ETFs before, or you’re a Canadian investor who wants to know more about these diverse investments, then buckle up. There’s lots to know.
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As an investor in Canada, chances are you’ve invested in, or thought about investing in, exchange-traded funds (ETFs). These pooled investments offer a blend of convenience and built-in diversification. When you buy shares of an ETF, you gain exposure to several company stocks at once. ETF shares trade on stock exchanges, and investors can access them via online brokerages and through investment advisors.
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ETFs may have lower management fees than comparable mutual funds. And, with such a wide variety of ETFs with different asset allocations to choose from—including funds that combine equities with fixed income and even cryptocurrency—there are ETFs for a range of investors, from conservative to aggressive. You can choose ETFs that try to replicate an entire stock index, such as the S&P 500, or focus on a specific sector or geographical region. Most ETFs are passively managed, but a growing number of funds are actively managed.
In Canada, Fidelity Investments offers a variety of ETFs for investors with different investment objectives, time horizons and tolerance for risk. Investors can consider ETFs in the following categories:
Equity ETFs invest in stocks across a broad range of sectors, market capitalizations and geographies.
Fixed income ETFs invest in bonds and can be used to generate income, with the potential for capital preservation.
Balanced or multi-asset ETFs invest across asset classes, including stocks and bonds.
A sustainable ETF that invests in companies with favourable environmental, social and governance characteristics.
Digital asset ETFs have direct exposure to cryptocurrency, such as bitcoin and ether.
On this page, we’ll share articles to help you learn about and evaluate ETFs for your investment portfolio. Check back often for more insights.
How many ETFs can Canadian investors own? ETFs offer Canadian investors an appealing combination of convenience, diversification and low fees. But how many ETFs should you own, and which ones?
What investments can I put in my TFSA? The TFSA contribution limit for 2024 was recently announced. TFSAs can hold more than just cash. Get to know your TFSA investment options, including some Fidelity All-in-One ETFs that offer portfolio diversification.
Taking an active approach to ETF investing in Canada Active ETFs may offer investors a more flexible alternative to mutual funds—and the potential to outperform a benchmark index. Are they right for your RRSP?
This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers and approved by the client.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual funds or ETF’s prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.
The statements contained herein are based on information believed to be reliable and are provided for information purposes only. Where such information is based in whole or in part on information provided by third parties, we cannot guarantee that it is accurate, complete or current at all times. It does not provide investment, tax or legal advice, and is not an offer or solicitation to buy. Graphs and charts are used for illustrative purposes only and do not reflect future values or returns on investment of any fund or portfolio. Particular investment strategies should be evaluated according to an investor’s investment objectives and tolerance for risk. Fidelity Investments Canada ULC and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered.
Jaclyn Law is MoneySense’s managing editor. She has worked in Canadian media for over 20 years, including editor roles at Chatelaine and Abilities. Jaclyn completed the Canadian Securities Course in 2022.
