Shopping for ETFs in Canada: MoneySense ETF Screener Instrument

Thematic ETFs

With thematic ETFs, you’ll be able to put money into transformational new applied sciences and different very particular themes or niches. There could be unbelievable alternatives, however thematic ETFs also can carry extra dangers. And, whereas the ETFs scale back single-stock threat, they nonetheless depart traders uncovered to the dangers of a sector.

Sector ETFs

You should purchase ETFs that solely maintain shares from a sure sector. For instance, you’ll be able to personal financial-, energy- or technology-focused ETFs, to call just a few. These ETFs can help you form your portfolio’s sector allocation to be extra aggressive, extra conservative or extra ready for sure financial circumstances, corresponding to utilizing client staples for a extra defensive tilt. 

Dividend and revenue ETFs

The sort of ETF permits traders to concentrate on revenue generated by means of beneficiant dividends and better bond yields. Enhanced yield will also be created by means of coated name or put writing ETFs. 

Lively and issue ETFs

Most ETFs observe an index and are passively managed. For energetic ETFs, portfolio managers take a unique strategy: As a substitute of following the market, they try and beat the market, they usually may search higher risk-adjusted returns. 

Issue ETFs are rules-based. They use a set of pointers and guidelines for fairness or bond choice. 

Cryptocurrency ETFs

Canada was the primary nation to supply true bitcoin ETFs—different bitcoin-sharing investments have been obtainable elsewhere, together with a belief from Greyscale. You’ll now discover bitcoin and ethereum ETFs obtainable from a number of suppliers. It’s an thrilling asset class that’s gaining extra widespread acceptance. However the dangers are nonetheless nice. Be ready for unbelievable volatility. Provided that, you would possibly contemplate a really modest allocation, like 1% to five%. 

Money ETFs

Many traders carry money balances as they add new cash to their accounts. Dividend and bond revenue can accumulate as properly. By way of money ETFs, you’ll be able to earn not less than somewhat one thing as you wait to place that cash to work. 

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MoneySense editors and journalists work carefully with main private finance specialists in Canada. Since 1999, our award-winning journal has helped Canadians navigate cash issues.