Working For You.


October 15, 2014


ETF’s or Exchange Traded Funds have grown significantly over the past decade to the point where they are now a mainstream product. We are often answering questions about ETF’s so we thought we would provide an update here:

First: What is an ETF?

In general, most ETFs are passively managed investments designed to track the performance of a particular index by investing in the same securities as the index. They’re similar to traditional mutual funds in that they hold a variety of securities in one investment. However, most traditional mutual funds are actively managed – meaning their managers actively select holdings that are different from those included in the index in an effort to achieve a higher return or exhibit lower risk than a benchmark. In addition, unlike other types of mutual funds, ETFs trade on an exchange, like a stock – and therefore experience price changes throughout the day.

Second: Should you invest in ETF’s?

As with any investment, you need to consider if it is the proper fit for you. ETF’s have grown so much in popularity and there are so many offered that they are now as complicated to understand and research as stocks, bonds and mutual funds. The key attraction to ETF’s is their low cost combined with instant diversification. Like individual securities or mutual funds, the challenge remains in putting together a portfolio that suits your individual preferences and meets your long-term goals. In this way an ETF should be looked at as a tool to help you build a portfolio to meet your goals.

Third: The bottom line

A number of the portfolios we recommend now include ETF’s. In fact, BMO now offers portfolios that hold only ETF’s. With more options than ever available, we feel that if a portfolio that includes ETF’s can give the investor the required diversification and still deliver strong long-term returns at a lower cost, then they should be used.

It is our strong belief that to be successful in reaching your goals it is necessary to have a plan in place and to follow a process. That is, to make your life and financial decisions not by accident but by design.

Remember, successful people ACT towards the future they want!

Recent Posts

“Those who understand it, earn it..”

With the NHL playoffs beginning a few weeks ago, no doubt many of you witnessed the continued obsession self-directed platforms put on “Retiring 30% Wealthier”. If you have seen these ads, it would...

read more

Our Clients

Their honesty and customer service is right up there, with the knowledge and recommendations on where investments should be made. When it’s time for a change Tim is always honest with us on where any changes should be made.

Janet McDonald

To me, it is their personalized service. When something happens, you can go in and discuss your options. The whole team knows your plans, listens to your needs, and can help you make adjustments.

Richard Dumoulin

They are very courteous, friendly and find them very professional. They are good at taking care of time sensitive matters and you get a general sense of being taken care of.

Ginny Blair

The fact they take time to discuss with you their knowledge base, they give you all the options then give you their opinion and let YOU make the final decision.


Their integrity and 1-on-1 communication skills, always personable. Tim and his team make you feel comfortable no matter how much you are investing.