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Using ETFs
Benefits of Investing in ETFs
ETFs offer investors:
- Quick and cost-effective diversification
- Trading flexibility
- Performance
- Transparency
- Cost efficiency
- Tax efficiency
- Lower volatility and reduced risk
Understanding the Risks
When considering an ETF as an investment, as with any other investment vehicle, risk will be involved. As with all types of investing, it is wise to read the prospectus and information materials, and seek the advice of an investment professional prior to making investment decisions.
ETFs in your Investment Strategy
ETFs are versatile, flexible and cost-effective investments, and depending on your market outlook and your risk tolerance level, there is likely an ETF strategy for you. ETFs can be used to invest conservatively, for growth, or for a more aggressive position in a particular sector or asset class.
ETFs in your RRSP
Did you know that ETFs are RRSP-eligible? There could be an ETF for you to consider adding to your investment portfolio. There are many advantages to holding ETFs in your RRSP, including the benefits of transparency and diversification at lower cost than mutual funds, coupled with the intra-day liquidity offered by individual stocks.
Trading ETFs and ETF Options
Once you have chosen the Exchange Traded Funds (ETFs) that are right for your portfolio and market outlook, you are ready to purchase shares of the ETFs. To do so, you can use a full service or discount/online broker in the same way you would to purchase stock shares.
