How did ETFs weather the pandemic?

I'm delighted to host again the BNN Bloomberg, Mackenzie Investments, Partners in Performance series.

Our first guest, Michael Cooke, Senior VP and Head of ETFs for Mackenzie Investments, gave his fascinating insights on how the ETF market persevered in pandemic volatility.

You may be surprised to learn how much the Canadian ETF market has matured. Many investors still look south of the border for options, but here in Canada, ETFs boast competitive fees and ample choice.

For the full interview, click here.

If you're new to investing in ETFs, here's a definition from Investopedia:

What Is an ETF?

An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same as a regular stock. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.

KEY TAKEAWAYS

  • An exchange traded fund (ETF) is a basket of securities that trade on an exchange, just like a stock.
  • ETF share prices fluctuate all day as the ETF is bought and sold; this is different from mutual funds that only trade once a day after the market closes.2
  • ETFs can contain all types of investments including stocks, commodities, or bonds; some offer U.S. only holdings, while others are international.
  • ETFs offer low expense ratios and fewer broker commissions than buying the stocks individually.

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