More New ETFs on the Horizon
The ETF market just keeps on growing. A couple of new products from Horizons focus on US-dollar investments, and while neither is a core holding for index investors, they may have some niche appeal....
View ArticleTracking Errors on US and International ETFs
The table below shows the tracking error of U.S. and international equity ETFs in 2010. To make sure you understand these numbers in their proper context, see yesterday’s post about tracking errors on...
View ArticleWhy Do Index Funds Use Derivatives?
Earlier this week I described how several US and international equity index funds get their market exposure by using index futures rather than holding the stocks directly. This structure is partly a...
View ArticleReview: Scotia iTrade’s US-Friendly RRSP
The cost of investing has dropped dramatically since the advent of online discount brokerages, but there are a couple of transactions where Joe Retail stills get clobbered. One of these is currency...
View ArticleClik here to view.
Ask the Spud: iShares Gold Trust
Q: The iShares Gold Trust (IGT) trades on the Toronto Stock Exchange, but I can’t find it on the iShares Canada website. Can you tell me why? — Jim O. The iShares Comex Gold Trust is an exchange-traded...
View ArticleClik here to view.
Claymore’s CGL: When Buying Gold Isn’t Enough
In Monday’s post, I answered a reader’s question about the iShares Gold Trust, an ETF that is cross-listed on the Toronto and New York Stock Exchanges with the ticker symbols IGT and IAU, respectively....
View ArticleA New Way to Sidestep Currency Conversion Costs
One of my biggest frustrations as an ETF investor is that so few online brokerages allow you to hold US dollars in registered accounts. Last year BMO InvestorLine became just the fourth brokerage to...
View ArticleAsk the Spud: Should I Hold US Bonds?
Q: One of my coworkers and I recently started our own Couch Potato portfolios and we’re wondering if it would be better to have some American bonds in the mix. Wouldn’t that be another way to...
View ArticleHow Much Are You Paying For US Dollars?
Currency conversion remains one of the biggest rip-offs in banking and investing. It’s made worse by the lack of transparency: if you call your discount brokerage they’ll quote their current rates, but...
View ArticleCalculating Foreign Returns in Canadian Dollars
Global diversification was a huge benefit to investors in 2012, as Canadian equities lagged well behind the rest of the world. Two core funds in the Complete Couch Potato are the Vanguard Total Stock...
View ArticleAsk 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...
View ArticleNew 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...
View ArticleThe Wait is Over: New ETFs From Vanguard
“Ask and ye shall receive.” That should be the refrain of Couch Potato investors during the last 10 months or so as the industry has filled just about all the gaps in the ETF marketplace. First it was...
View ArticleNorbert’s Gambit at CIBC: A Case Study
Norbert’s gambit is an excellent way to reduce the cost of converting Canadian and US dollars, but not every brokerage makes it easy. Recently Justin Bender helped a client of our DIY Investor Service...
View ArticleInside the New Vanguard ETFs
Vanguard Canada launched some new ETFs this week, and I spoke with managing director Atul Tiwari about the funds. Let’s take a closer look. Cross-Canada coverage The Vanguard FTSE Canada All Cap (VCN)...
View ArticleNorbert’s Gambit: The Complete Guide
Norbert’s gambit remains the least expensive way to convert Canadian and US dollars at a discount brokerage. For investors looking to buy US-listed ETFs, learning this technique can save hundreds of...
View ArticleAsk the Spud: When Should I Use US-Listed ETFs?
Q: Under what specific circumstances would it be better to hold a US-listed ETF if there is a Canadian equivalent? For example, when it is preferable to use the Vanguard Total Stock Market (VTI) rather...
View ArticleClik here to view.
How a Falling Loonie Affects US Equity ETFs
Over the last year the loonie has declined significantly relative to the US dollar: the currencies were at par early last February, but the Canadian dollar closed under $0.92 US on January 10. That has...
View ArticleClik here to view.
Currency Exposure in International Equity ETFs
My last post explained that Canadian investors are exposed to currency risk any time they hold US equities, even if their holding is an ETF or mutual fund that trades in Canadian dollars. In my...
View ArticleWhy Currency Hedging Doesn’t Work in Canada
In the last two years, Canadian ETF providers have finally launched US and international equity ETFs that do away with currency hedging. Yet the strategy remains hugely popular: the hedged versions of...
View Article