In high school, the popular kids aren’t always the one’s with the best qualities. More often they’re the ones with the good looks, charm, and nice cars. Meanwhile, the kids with the brains and the bad haircuts—and the best long-term prospects—eat lunch alone.
The world of ETFs is often the same way. According to the Canadian ETF Association’s latest stats, the most popular funds include those tracking gold mining stocks, preferred shares, high-yield bonds and covered calls, each with assets between $800 million and $1.3 billion. There’s nothing necessarily wrong with any of these ETFs, but none would be near the top of my list of recommendations for the average investor. Meanwhile, there are many excellent funds that can’t find anyone to ask them to dance.
Here are five unjustly small Canadian ETFs that are worth a closer look: none has more than $70 million in assets, and several have much less.