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…

Replies to this Post

  1. Landan W says:

    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 says:

    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 says:

    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 says:

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

  5. Kasey says:

    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. says:

    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 says:

    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 says:

    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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