When You Can Ignore Tracking Error
In Monday’s post, I reviewed the major factors that contribute to an index fund’s tracking error. Here are some other things to consider when you’re comparing your fund’s performance to that of its be [...]
What Causes an ETF’s Tracking Error?
Last week I explained the importance of monitoring an ETF’s tracking error, which is the difference between a fund’s actual performance and the returns of its index. The most significant reason index [...]
How Well Does Your ETF Track Its Index?
The ideal index fund would deliver the precise return of its benchmark, but we all know that’s not realistic. ETFs and index funds may be cheap but they're not free, and fees almost always cause them [...]
New iShares ETFs Give Canadians the World
In an era when ETFs are becoming increasingly narrow and specialized, the new iShares funds launched this week were a pleasant surprise. Granted, they were late to the game with the iShares S&P 50 [...]
Calculating Your Adjusted Cost Base With ETFs
Being a DIY investor is easy when all your accounts are tax-deferred. As the April 30 tax deadline approaches, pretty much all you need to do is gather your RRSP contribution slips. But if you have no [...]
How the 2013 Budget Will Affect ETFs
The federal budget on March 21 included a proposal to put an end to investment funds that “seek to reduce tax by converting, through the use of derivative contracts, the returns on an investment that [...]
New BMO Funds Come in Several Flavours
This week BMO announced more additions to its line of ETFs. What’s most interesting about these new funds is not so much the asset classes they track, but the fact that each comes in two or three flav [...]
Ask the Spud: The US-Dollar Couch Potato
We just sold our condo in Florida and now have some money to invest in non-registered accounts. The problem is, the money is all in American dollars. Is there a way to use the Couch Potato strategy us [...]
The ETF’s Price Is Right—Except When It’s Not
Last week I described how an ETF’s market price and net asset value (NAV) can diverge. Now it’s time to look at the three main reasons why this occurs. Our guides for this discussion—which I’ll warn y [...]
Two Ways to Measure an ETF’s Performance
When I update the performance of my model portfolios, the returns I use are based on the annual change in each fund’s net asset value (NAV). That’s the most appropriate way to measure an ETF’s perform [...]
