What’s an exchange-traded fund (ETF)?
December 2022 – 15 min read
ETFs are a type of investment that people can use as part of their investment strategy.
Index ETFs are one example that people use if they believe markets are efficient and they’re comfortable investing in a portfolio that aims to deliver performance similar to market index, before fees.
Advisors are a great resource to learn about if these funds are the right fit for you.
Investing has many benefits. Some of the benefits of investing in an ETF may include:
You don’t have to wait until the market closes to buy or sell. You can move money throughout trading hours, giving you flexibility.
There are a lot of options for you to invest in based on your interests.
For index ETFs, you can easily monitor how the funds are doing by looking at the performance of the index. This allows you a line of sight to performance of your funds.
Fees and management expense ratios
Since index ETFs track an index, they generally have lower costs when compared to mutual funds or segregated funds because they are passively managed.
You can learn more about whether Canada Life Index ETF portfolios are right for you.
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.
Make your investment decisions wisely. A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.