When some investors view the trading volume of most ETFs, they may be shocked to see such low volume trading on exchanges. They may take this as a sign the ETF has low liquidity. However, an ETF’s low trading volume on exchange isn’t an indication of its total liquidity. In fact, liquidity of the portfolio underlying an ETF determines its...
Investing in bonds can be a lower-risk way for investors to diversify their portfolios and gain exposure to the fixed income market. Bond funds and bond ETFs offer a convenient way for investors to gain exposure to the bond market without purchasing individual bonds. However, choosing the right bond ETF can be challenging, as there are many options available in...
While several carbon credit funds exist in the US, this post will compare three Canadian carbon credit ETFs. We’ll help readers determine whether investing in carbon credits is a good strategy for your portfolio and if so, which ETF is the best. What are Carbon Credits? Carbon credits are a tradable permit that allows organizations, governments, or individuals to emit a specific...
Dividend ETFs are a popular investment option that focus on investing in stocks that pay dividends. These types of ETFs typically include established and profitable companies with a track record of consistent or growing dividends over time. Dividend ETFs can provide investors with a source of income, diversification, stability, and potential for capital appreciation. However, investors should be aware of...
Bond exchange-traded funds (ETFs) are investment vehicles that provide investors with exposure to a diversified portfolio of fixed-income securities. They offer a cost-effective way to access the bond market and are often used as a tool for income generation or to diversify a portfolio. In this blog post, we will compare three bond ETFs offered by Vanguard based on their...
Which is the best ESG ETF in Canada? This post describes how to create a low cost ESG index portfolio that aligns with your values. We will consider which Canadian ETF is the best to use and also highlight alternative ways to construct your own customized ESG portfolio. We will begin by describing what ESG investing means and what an index...
In today’s low rate environment, yield hungry investors are adding more covered call ETFs to their portfolios. ETF issuers now offer a variety of interesting products, and recently, Purpose Investments began offering two covered call ETFs based on cryptocurrencies. Because of the high volatility of cryptocurrencies, these ETFs offer huge yields compared to other covered call ETFs based on stocks. This...
Gold prices have been trending higher. And, after surging to new all-time highs, investors are scrambling for explanations behind gold's gravity-defying rally. But, is gold a good investment? And, is gold a suitable investment for the long-term, or just during certain circumstances? Is now a good time to invest in gold? Let's delve into the nature of this investment and...
The evolution from index to factor-based investing has become increasingly nuanced. Investors are recognizing a deeper understanding of market dynamics and investor behavior. Initially, the widespread adoption of index funds in the 1990s was largely attributed to the Efficient Market Hypothesis. This theory posits the stock market's efficiency made it rare for active managers to consistently outperform passive benchmarks. However, as...
Does investing in weapons sound like a socially responsible investment strategy? And, do weapons companies fit within an ESG investment portfolio? Many ESG investors would say, No! But, many ESG investors are also inadvertently investing in weapons companies through so-called ESG funds. So, this post will explain how weapons companies can find themselves in many ESG portfolios, and what investors...
