Barry Gordon on Building an Index
Back when dinosaurs roamed the earth, all ETFs tracked well-known third-party indexes like the S&P 500. But it wasn’t long before all of the major benchmarks were spoken for and ETF providers began...
View ArticleBarry Gordon on Building an Index: Part 2
In Monday’s post I shared part one of my interview with Barry Gordon, CEO of First Asset, who explained how his firm worked with Morningstar to create new ETF indexes. In part two the interview, Gordon...
View ArticleFour New ETFs and an Invitation
BMO has announced it’s launching four new ETFs, which will start trading on Tuesday, November 20: BMO S&P 500 (ZSP/ZSP.U) BMO S&P/TSX Laddered Preferred Share (ZPR) BMO S&P/TSX Equal Weight...
View ArticleVirtual Brokers Becomes the ETF Leader
The Globe and Mail announced its annual discount brokerage rankings yesterday and crowned a new winner. Virtual Brokers took top spot for 2012, ending a six-year run by Qtrade. In his article about the...
View ArticleInside the BMO and PowerShares Low-Vol ETFs
In the last 14 months or so, Canada’s ETF providers have launched several funds based on low-volatility strategies. As we saw in my last post, the research suggests it may be possible to build a...
View ArticleInside the iShares Minimum Volatility ETFs
Last week we looked at two low-volatility ETF strategies based on beta and the standard deviation of daily price movements. Now let’s complete our roundup by looking at a third methodology used by...
View ArticleAsk the Spud: Combining e-Series Funds and ETFs
I use the Global Couch Potato with e-Series funds in my TD Waterhouse account, but I eventually want to use the Complete Couch Potato. Once my portfolio gets to $50,000 and I qualify for $9.95 trading...
View ArticleUpdated Couch Potato Report Card
Last week I announced the 2012 returns for my model portfolios. Now it’s time to present the updated longer-term returns of the portfolios, with data provided by Justin Bender. This information covers...
View ArticleRevisiting the Couch Potato Model Portfolios
Before we get too deep into the new year, I’ve decided it’s time to review my model portfolios. Regular readers will know I’m reluctant to tinker with the portfolios, since new ETFs are launched all...
View ArticleWhat’s On Your ETF Wish List?
It seems like ETFs are appearing in Canada every month, but it’s been a while since I got genuinely excited about a new product. It was great to see both Vanguard and BMO create S&P 500 funds with...
View ArticleWhy Index Mutual Funds Still Have a Place
Responding to a recent article on mutual funds by Rob Carrick, a Globe and Mail reader rehashed a common refrain: “Perhaps mutual funds were once a great way for ‘average Canadians’ to invest, but they...
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Two Ways to Measure an ETF’s Performance
When I update the performance of my model portfolios, the returns I use are based on the annual change in each fund’s net asset value (NAV). That’s the most appropriate way to measure an ETF’s...
View ArticleThe ETF’s Price Is Right—Except When It’s Not
Last week I described how an ETF’s market price and net asset value (NAV) can diverge. Now it’s time to look at the three main reasons why this occurs. Our guides for this discussion—which I’ll warn...
View ArticleAsk the Spud: The US-Dollar Couch Potato
We just sold our condo in Florida and now have some money to invest in non-registered accounts. The problem is, the money is all in American dollars. Is there a way to use the Couch Potato strategy...
View ArticleNew BMO Funds Come in Several Flavours
This week BMO announced more additions to its line of ETFs. What’s most interesting about these new funds is not so much the asset classes they track, but the fact that each comes in two or three...
View ArticleHow the 2013 Budget Will Affect ETFs
The federal budget on March 21 included a proposal to put an end to investment funds that “seek to reduce tax by converting, through the use of derivative contracts, the returns on an investment that...
View ArticleCalculating Your Adjusted Cost Base With ETFs
Being a DIY investor is easy when all your accounts are tax-deferred. As the April 30 tax deadline approaches, pretty much all you need to do is gather your RRSP contribution slips. But if you have...
View ArticleNew iShares ETFs Give Canadians the World
In an era when ETFs are becoming increasingly narrow and specialized, the new iShares funds launched this week were a pleasant surprise. Granted, they were late to the game with the iShares S&P 500...
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How Well Does Your ETF Track Its Index?
The ideal index fund would deliver the precise return of its benchmark, but we all know that’s not realistic. ETFs and index funds may be cheap but they’re not free, and fees almost always cause them...
View ArticleWhat Causes an ETF’s Tracking Error?
Last week I explained the importance of monitoring an ETF’s tracking error, which is the difference between a fund’s actual performance and the returns of its index. The most significant reason index...
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