Chapter 19: Exchange-Traded Funds

In this section

• The Regulation and Structure of Exchange-Traded Funds
  Discover the comprehensive regulatory framework governing ETFs in Canada, including CSA oversight, listing requirements, and the creation/redemption mechanism fundamental to ETF structure.
• Key Features of Exchange-Traded Funds (ETFs): Lower Costs, Intra-Day Trading, and Transparency
  Discover how ETFs offer investors lower management fees, intra-day price updates, and transparent holdings—all within a flexible trading framework governed by Canadian regulations.
• The Various Types of Exchange-Traded Funds
  Explore a comprehensive overview of different ETF categories—Index-Based, Sector, Thematic, Bond, Commodity, Currency-Hedged, Leveraged, and Active—within the Canadian market context.
• The Risks of Investing in Exchange-Traded Funds
  Delve into the key risks ETF investors face, including market risk, tracking error, liquidity challenges, concentration exposure, counterparty risk, and currency fluctuation. Learn practical strategies to mitigate these risks within the Canadian regulatory framework.
• Comparing Exchange-Traded Funds and Mutual Funds
  A detailed, practical guide comparing ETFs and mutual funds, covering pricing, trading, fees, transparency, tax efficiency, and more—all within the Canadian investment context.
• Taxation of Investors in Exchange-Traded Funds
  Learn how ETFs are taxed in Canada, including distributions, capital gains, foreign withholding taxes, registered account considerations, and best practices for effective tax planning.
• Investment Strategies Using Exchange-Traded Funds
  Learn how to use core and satellite ETFs, dollar-cost averaging, and tactical asset allocation strategies to enhance and diversify your Canadian investment portfolio.
• Other Related Products
  Explore ETNs, Closed-End Funds, and Alternative ETFs in the Canadian Market with Practical Examples