ETF 101: What Are ETFs?
About
The ETF 101 content series was developed to guide you on your ETF investment journey.
Introducing The Biggest Winner ETF Trading Simulator (May 16 - June 24)
TSX is a proud sponsor of Horizons ETFs The Biggest Winner, a simulated trading contest where investors of all experience levels are welcome to participate. It’s a great way to learn about ETF investing or to hone your trading skills.
You’ll start off with $100,000 of fantasy funds to trade from among hundreds of TSX ETFs. You’ll trade in real-time, and have a chance to win real cash prizes! The grand prize winner will receive $10,000 and $5,000 will go to the runner-up. You’ll also be eligible for weekly prizes of $1,000.
What are ETFs?
ETF = Exchange Traded Funds
ETFs are investment funds that hold:
bonds
stocks
gold bullion
cryptocurrencies
Canadian ETFs track a wide range of different asset classes via indexes
Most ETFs are tied to index products, including both equity or fixed income funds
Plus they include actively managed portfolios by top portfolio managers
Index tracking funds
Passively Managed: Seek to replicate the performance of their benchmarks
Non-indexed funds
Actively Managed: analysts and portfolio managers decide where the fund invests
How are ETF prices set?
Unlike mutual funds, ETF pricing is available through the trading day
It’s based on the underlying portfolio value
It’s not set by supply and demand as it is for stock
For these reasons, market makers help maintain ETF prices and provide liquidity to investors
Visit the TSX ETF Investor Centre