What is an ETF?
An exchange traded fund (ETF) is an investment fund that is traded on a stock exchange. The aim of an ETF is to track the performance of a specified index (like the S&P/TSX Composite Index) and to provide you with a similar return as that index, less fees. Like a fund, your ETF investment gives you access to a portfolio of companies (stocks), bonds or other asset types (such as commodities).
How do I learn more about ETFs?
Start with iShares University. Designed specifically for investors, this ETF Toolkit provides you with all the resources you need to better understand ETFs, the benefits they provide and how to use them in your investment portfolio.
What are the benefits of using ETFs?
- Diversification: ETFs give you access to a whole world of investment options, covering a broad range of asset classes, sectors and geographies. Diversifying a portfolio can help to spread risk and avoids putting all your eggs in one basket.
- Cost effectiveness: ETFs often have lower costs than other types of investment funds.
- Transparency: Know what you own. With ETFs you know exactly what you’re investing in with daily visibility into what securities the fund holds, how it’s performing and its costs.
- Liquidity: ETFs are traded on stock exchanges, so you can easily make or add to an investment, or sell your investment. It’s as easy to get out as it is to get in.
It’s a new world, and in times like these, many investors are re-thinking their investment portfolio. As we crawl out of the lost decade, one certainty remains: the future is coming. It’s no longer enough to simply preserve what you have today; you have to start building what you need for tomorrow, and you can’t wait until tomorrow to do so. It’s time to be an investor again. Where do you start? Start with the basics.
Introducing the iShares Building Blocks.
Every investor’s needs are different. For many investors, greater diversification is crucial to meeting their investment goals. Putting together the right mix of assets is arguably more important than ever. Mixing and matching iShares ETFs to build a personalized investment portfolio can be an efficient, cost-effective approach for your clients.
Get started with iShares Building Blocks in three easy steps:
- Consider the essentials. Access major asset classes and go global with just 3 iShares ETFs: Canadian stocks (XIU), U.S. stocks (XUS), and Canadian bonds (XBB).
- Customize your portfolio. iShares makes it easy to customize your exposure with these additional ETFs: developed (XEF) and emerging (XEC) market stocks, dividend income (XDV), global fixed income (XHY), corporate bonds (CBO), short-term bonds (XSB) or select a one-ticker balanced income solution (XTR).
- Capture opportunities. See what the world has to offer. Act on your ideas and adapt to changing markets. Looking for income? Consider XHY. Or less volatility? Try an iShares minimum volatility strategy. iShares offers you over 80 liquid, transparent, low-cost- and diversified ETFs to implement your ideas.
It is a new world. Today’s markets may be more volatile, more uncertain and more complex than ever before. Investing in today’s world is an active, dynamic process and many of the old ways of investing simply are not working any more.
In these markets, consider iShares ETFs – the same ETFs that 4 of 5 Canadian Investment Advisors make their first choice in ETFs1.
See what makes iShares different:
|4/5 Canadian Investment Advisors make iShares their first choice in ETFs; the most trusted brand1||With over 80 ETFs in Canada to help you uncover opportunities and implement your ideas||iShares is an industry leader in making investing clear, fair, and efficient for you|
|With over 80 ETFs in Canada (11 Canadian ETFs with more than a 10 year history, we can help you navigate today’s markets)||100 investment teams in 27 countries - we are on the ground where you want to be||iShares are the most liquid bond ETFs in Canada3 – $9.8 billion dollars has changed hands through iShares Bond ETFs YTD 2012, more than twice all other non-iShares bond ETFcombined4|
|iShares Canada has 12 funds with more than $1 billion in AUM and no other local provider has an ETF greater than $1B2||Website (including portfolio allocation tools; model portfolios) welcoming over 100k visits monthly, social media, apps||With the first emerging markets ETF, iShares unlocked access to distant equity markets typically only available to large institutions.|
|BlackRock advises many of the world's largest companies and governments on managing risks and understanding capital markets||BlackRock is a thought leader across markets, risk management technology and investment strategies and offers active and index mutual funds, separately managed accounts and iShares ETFs||BlackRock continuously brings the best of BlackRock to our clients, pioneering new ways to combine active and index strategies|
1 Source: Investment Economics, Q2, 2012
2 As of 9/30/12
3 Source: Bloomberg as of January 31, 2013 where liquidity is measured by a combination of daily trading volume and spread as compared to its competitive set
4 BlackRock Asset Management Canada Limited