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What makes a great Exchange Traded Fund (ETF)? <\/em><\/p>\n What are the top Canadian dividend ETFs to own?<\/em><\/p>\n You\u2019ve come to the right site and the right post for these answers and my thoughts.\u00a0Let\u2019s go in this updated post!<\/p>\n An ETF (Exchange Traded Fund) is a diverse collection of assets (like a mutual fund) that trades on an exchange (like a stock does). It is a single investment that holds a basket of many different assets, such as stocks, bonds, or commodities. ETFs trade on public stock exchanges just like regular company stocks do.<\/p>\n This makes an ETF a marketable security = it has trading capability. Since you buy and sell ETFs on an exchange during the day, ETF prices can change throughout the day as they are bought and sold.\u00a0<\/p>\n ETFs may have<\/em> lower fees than mutual funds (although not always), which can make them an attractive alternative to mutual funds.<\/p>\n Based on my personal experiences approaching 20 years as My Own Advisor <\/em>I find ETFs very easy to buy using a discount brokerage and ETFs can provide a low-cost way to diversify your portfolio.\u00a0<\/p>\n Although you don\u2019t need to buy equity ETFs, it is my personal belief that you\u2019re FAR better off owning more equities than bonds over long investing periods.<\/p>\n Related Reading:<\/strong><\/p>\n Then and Now \u2013 Revisiting the need for bonds<\/a><\/p>\n<\/blockquote>\nWhat is an ETF?<\/strong><\/h3>\n
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