Introducing Our New Lineup of ETFs

By Randy Cass on May 12, 2017

    Posted in: Inside Nest Wealth

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    We want the best for your money. That means making sure you keep as much of it as possible.

    How do we do that? By keeping your investment fees low. It’s why we charge a capped monthly fee instead of a percentage of the money you have invested, and why we build your portfolio from the best low-cost ETFs on the market. 

    What makes one ETF better than another?

    Saying one ETF is better than another has nothing to do with performance since they track the same underlying asset class, for example short term bonds. Better means lower fees, higher liquidity, or a lower tracking error to the underlying index. 

    A lower management expense ratio means you pay less in fees so your portfolio can grow larger. More money for future you! Higher liquidity means your portfolio is easier to rebalance and your money is readily accessible when you need it. And a lower tracking error simply means the ETF is more efficient at it’s job of mimicking an index.

    For you, only the best!

    Our team’s always reviewing the ETFs available to see if something better’s come on the market in any asset class. 

    If we find ETFs we think are better for any of those reasons mentioned above we’ll spend some time extensively testing and analyzing them in mock portfolios. We want to be completely confident everything works well together before making any changes. 

    We put a great deal of time and care into selecting the ETFs and asset classes we use. It’s your money and it deserves the best that’s out there.

    That said, we’re excited to introduce you to our new lineup of ETFs!

    Here are the new ETFs we’ll be using 

    Vanguard Canadian Short-Term Bond Index ETF (VSB)

    Asset Class: Short-Term Bonds
    MER: 0.11%
    Fund fact sheet

    Tracks Canadian government short term bonds. Bonds with shorter durations are less volatile and less sensitive to changes in interest rates, and therefore have a lower return. Their primary purpose is capital preservation. 

    BMO Aggregate Bond Index ETF (ZAG)

    Asset Class: Medium-Term Bonds
    MER: 0.09%
    Fund fact sheet

    Tracks Canadian government medium term bonds. Medium term bonds are more volatile than short term bonds and therefore tend to pay a higher interest rate. 

    iShares Canadian Real Return Bond Index ETF (XRB) 

    Asset Class: Real Return Bonds
    MER: 0.39%
    Fund fact sheet

    Tracks Canadian government real return bonds. They provide a hedge against inflation as their rate of return is adjusted for inflation. 

    iShares Core S&P/TSX Capped Composite Index ETF (XIC) 

    Asset Class: Canadian Equities
    MER: 0.05%
    Fund fact sheet

    Provides broad exposure to the Canadian equity market by covering large, mid, and small companies across all sectors. Equities are more volatile than bonds and can provide a higher rate of return. Their primary purpose is capital growth and income from dividends.

    iShares Core S&P 500 Index ETF (CAD-hedged) (XSP) 

    Asset Class: US Equities
    MER: 0.10%
    Fund fact sheet

    Tracks the 500 largest publicly listed companies in the United States. Diversifying outside of Canada can provide higher returns and reduce the portfolio's overall risk.

    iShares MSCI EAFE ETF (IEFA)

    Asset Class: Global Equity
    MER: 0.08%
    Fund fact sheet

    Provides broad exposure to developed equity markets in Europe, Australia, and the Far East by covering large, mid, and small companies across all sectors. International equities provide an opportunity for growth and greater diversification.

    Vanguard REIT ETF (VNQ) 

    Asset Class: Real Estate
    MER: 0.12%
    Fund fact sheet

    Real estate investment trusts (REITs) own a selection of office buildings, hotels, and apartment buildings. They are typically more volatile than bonds but less volatile than equities. They provide an opportunity for high income and moderate growth. 

    FAQs about the ETFs we use

    To learn more about the ETFs we use and how we build your portfolio read the top questions we’re asked about our ETFs.

     

    If you have any other questions please send us a note at [email protected].  

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