Kevin Prins spoke in the opening remarks. His talk was called “Simple Rules to Make You a Better ETF Investor”. He is managing director, Head of Distributions, ETFs, and Managed Accounts at BMO Global Asset Management. His company’s site here.
BMO had 30% of the ETF business. The advantage of an ETF is the liquidity. They are easy to get into and out of. ETFs are diversified and cost efficient. They have Portfolio Transparency which helps you understand what you are holding.
ETFs are like a stock. They have buyers and sellers like a stock, so they have secondary liquidity. Their volumes are not on the TSX and spread is a better indictor of volume. When buying and selling ETFs avoid the first 15 minutes of trading and the last 15 minutes of trading. When the market is close in other countries, the ETFs for those countries are less liquid.
Make sure that the yields are all being earned by the ETF. Know about taxes for your ETF. Also, make sure that the ETF really is tracking what you want to invest in.
On my other blog I wrote yesterday about Trigon Metals Inc. (TSX-TM, OTC-PNTZF) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Wednesday, October 17, 2018 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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