Wednesday, November 11, 2015

Money Show 2015 - ETFs

The next item at the Opening Ceremonies of the Money Show for 2015 was an ETF Panel. This panel was called "Building an Effective Global Portfolio Using ETFs". Pat Dunwoody, Executive Director of Canadian ETF Association was the Moderator. The Panel was Ted Bader , National Sales Manager, National Accounts, SIA Wealth; Pat Chiefaio, Managing Director, iShares and Alfred Lee Portfolio Manager, BMO Assets Management Inc.

The message is that it is a good time to use global EFTs.

Lee: BMO has 69 ETFs. If you pay a fee, they will tell you have to manage an ETF Global Portfolio.

Chiefaio: Most goods we use are not Canadian. The iShares site has 4 models for investing globally with their ETFs

Bader: There is less co-relations worldwide. It is best to do a top down approach to investing with Global ETFs. We all have a home country bias. There are tools on ETF sites to help you invest.

Chiefaio: ETFs are the most efficient way to access markets. There are different ETFs to access some markets.

Lee: There are tool kits for individuals because of ETFs in the same ways as there are tool kits for institutions. About 97% of the time active management underperforms indexes. Some ETFs have currency hedging.

Bader: You do have a tool kits and you can put them into practice without help. ETFs are how you protect yourself from the next bear market. Why you buy ETFs is to take the risk out of buying individual stocks. ETFs are a low cost way to buy a stock portfolio. You have liquidity, low cost and transparency.

Chiefaio: Takes depend on the underlining items on an ETF. You can day trade ETFs, but it depends on the ETF. ETFs trade at NAV and not necessarily the bid/ask price.

Bader: Buy US ETFs if you think the US is going to outperform other markets.

I believe that I only got part of this panel discussion. I am not really interested in EFTs, but I know a lot of people are. What surprised me what the comments that ETFs trade at NAV (i.e. Net Asset Value), not at buy/ask price.

On my other blog I am today writing about Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more...

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