How to buy ETF in Canada?
What does it cost to invest in ETFs? At RBC Direct Investing, you'll pay just $9.95 flat per online and mobile trade2 with no minimum balance or trading activity required. When you make 150+ trades per quarter, you'll pay only $6.95 per online and mobile equity trade2.
- Open a brokerage account. You'll need a brokerage account to buy and sell securities like ETFs. ...
- Find and compare ETFs with screening tools. Now that you have your brokerage account, it's time to decide what ETFs to buy. ...
- Place the trade. ...
- Sit back and relax.
| Ticker | Fund name | Reasons |
|---|---|---|
| VEQT | Vanguard All-Equity ETF | 100% in stocks. Long term growth. |
| VGRO | Vanguard Growth ETF | For growth focused investors |
| XEQT | iShares All-Equity ETF | 100% in stocks. Long term growth. |
| XGRO | iShares Growth ETF | For growth focused investors |
What does it cost to invest in ETFs? At RBC Direct Investing, you'll pay just $9.95 flat per online and mobile trade2 with no minimum balance or trading activity required. When you make 150+ trades per quarter, you'll pay only $6.95 per online and mobile equity trade2.
Canadians own CAD $92 billion in Vanguard assets, including Canadian and U.S.-domiciled ETFs and Canadian mutual funds. Vanguard Investments Canada Inc. manages CAD $63 billion in assets (as of December 31, 2023) with 37 Canadian ETFs and six mutual funds currently available.
Because they trade like stocks, ETFs do not require a minimum initial investment and are purchased as whole shares.
Also, beyond an ETF share price, there is no minimum amount to invest, unlike for mutual funds. Any broker can turn an investor into a new ETF holder via a straightforward brokerage account. Investors can easily access the market or submarket they want to be in.
| Name | Ticker | Dividend Yield |
|---|---|---|
| FTSE Canadian High Dividend Yield Index ETF | VDY | 4.79% |
| BMO Canadian Dividend ETF | ZDV | 4.37% |
| Invesco Canadian Dividend ETF | PDC | 4.77% |
| IShares Core S&P/TSX Composite High Dividend Index ETF | XEI | 5.05% |
The Most Popular ETF in Canada is Rated Gold
The Vanguard S&P 500 ETF VFV tracks the S&P 500, which offers a representative portfolio of the U.S. large-cap market. S&P's eligibility criteria require that index constituents be profitable and highly liquid.
- The BMO option. My first pick among the S&P 500 ETFs available to Canadian investors is the BMO S&P 500 Index ETF (TSX:ZSP). ...
- The iShares option. My second pick addresses the concern of currency fluctuations that can impact returns for Canadian investors. ...
- The Vanguard option.
How can I grow my money in Canada?
- savings accounts.
- short-term deposits.
- short-term guaranteed investment certificates ( GIC s)
- cashable savings bonds.
| Funds | Minimum Balance | Minimum Transaction Amounts |
|---|---|---|
| RBC Premium Money Market Fund RBC $U.S. Premium Money Market Fund* | $100,000 | $100 |
| All other funds+ | $500 in a registered plan and $1,000 in a non-registered plan | $25 |
Similar to trading stocks, you may buy or sell ETFs through your Trading Representative or on our online and mobile platforms. Most ETFs listed on SGX are classified as Specified Investment Products ("SIPs") and you are required to pass the qualifications assessment before trading ETFs.
Canadian ETFs can be traded with a U.S. brokerage account similar to equities and is easier than trying to buy a foreign stock. Exchange-traded funds (ETFs) offer the diversity of an index with the simplicity of equity.
- Step 2: Choose your Registered Accounts. The most common types you can choose from are Registered Retirement Savings Plan (RRSP), Tax-Free Saving Account (TFSA), and a personal account. ...
- Step 3: Pick your ETFs by using an ETF Screener.
VFV is the Canadian equivalent of the popular Vanguard S&P 500 ETF (VOO), offered by Vanguard U.S., with both VFV and VOO tracking the S&P 500.
Under the Investment Company Act, private investment funds (e.g. hedge funds) are generally prohibited from acquiring more than 3% of an ETF's shares (the 3% Limit).
The mutual fund operator has since become the second-largest provider of ETFs (by market cap) behind Blackrock.3 Vanguard's unique cost structure, the economies of scale it has achieved, and the total number of assets under management (AUM) allow it to offer its ETFs at the lowest cost available in the market.
| Symbol | Name | 5-Year Return |
|---|---|---|
| IUS | Invesco RAFI Strategic US ETF | 14.75% |
| OEF | iShares S&P 100 ETF | 14.73% |
| SPHB | Invesco S&P 500® High Beta ETF | 14.58% |
| SPYG | SPDR Portfolio S&P 500 Growth ETF | 14.40% |
You can put $500 in a stock ETF and $500 in a bond ETF to achieve a diversified two-asset-class portfolio which, though simple, can be a great start toward building a portfolio appropriate for your goals. ETFs can be a simple way to build incrementally toward your long-term plan.
Why not invest in ETF?
Market risk
The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.
Exchange-traded funds (ETFs) are ideal for beginning investors due to their many benefits, which include low expense ratios, instant diversification, and a multitude of investment choices. Unlike some mutual funds, they also tend to have low investing thresholds, so you don't have to be ultra-rich to get started.
Here's where Canadian dividend exchange-traded funds (ETFs) enter the scene. They offer investors a diversified stock portfolio, which could include dividend-paying companies, that's easy to manage. For example, the Fidelity Canadian High Dividend ETF (FCCD) holds 65 dividend-paying stocks, as at Jan. 15, 2024.
Dividend ETFs can provide a regular source of income and help investors meet current spending needs. Canadian dividends may be eligible for preferential tax treatment.
ETFs are treated the same as conventional open-end mutual funds for tax purposes. Investors generally pay taxes on income and capital gains distributions during the life of the investment, as well as on any capital gains generated on the sale of their ETF units.
