The ETF Landscape in Canada Is Getting a Lot Harder to Traverse

etf navigatingExchange-traded funds (ETFs) in Canada recently broke through the $100 billion mark in assets under management. And with more than 400 ETFs trading on the Toronto Stock Exchange, it’s getting a lot harder for self-directed investors to build consistent, easy-to-maintain portfolios without a bit of outside help.

In the early days, it was simple enough: the classic “Couch Potato” ETF portfolio would have consisted of about four broad-based, low-cost ETFs. Typically, this would be comprised of 20% Canadian equities, 20% U.S. equities, 20% EAFE/emerging markets, and 40% in a domestic bond ETF. Those would probably come from one or two mainstream vendors, typically BlackRock Canada (iShares) or Vanguard Canada.  Read More…

This article has 8 Comments

  1. Landan W

    Couch is still what i use when trying to "traverse" this chaos and finding out what i should be including in my portfolio. I've been happy with the results over the years. Could be better but still descent.

  2. Koda Williams

    It's getting harder is an understatement. Just this year alone there have been 630 new funds introduced. And new terminologies and new categories. Huh? It's kind of overwhelming.

  3. Paul

    The article mentions TSX:VVO (Vanguard Global Minimum Volatility). My issue with it is that it is a bit too weighted on the financial sector and consumer goods. I just wish they put a bit more emphasis on telecom.

  4. Ewan D

    I'm using Questrade's Portfolio IQ. They manage my etfs for me. Cost is reasonable.

  5. Kasey

    Wait, so TD left for a while and returned? Didn't know that. Been with their e-series for a long time.

  6. Eric M.

    This is why i believe mutual funds are seeing a resurgence. Because ETFs are getting more complicated.

    This is why the new buzzword of robo-advisors are becoming a thing.

  7. Kelton Salmon

    Just finished reading the entire article. Yea Couch use to be a good place to go but i felt they were getting pressured to put in new offerings that weren't ideal. Or at the very least the best were in a minimum asset range outside the average investor.

  8. Courtenay Janes

    It's funny how so many acquisitions are being done. My concern is with limited options it could spell the rise of investment rates and less competitive offerings 🙁

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