Indexes can track a specific sector to a country. Therefore, there are numerous ETFs to choose from. Furthermore, there are several providers in Canada that offer ETFs. I am using iShares ETFs since they have a ETF screener tool.
When I purchase ETFs, I look for both a low MER and high liquidity.
Main Index tracking ETFs
When it comes to purchasing ETFs, people who know recommend index tracking ETFs. Therefore, a list of index tracking ETFs are provided below. The MER, Management Expense Ratio, is very low. Therefore, lower fees = more of your money working for you.
|XIU||iShares S&P/TSX 60 Index ETF||0.15||0.18|
|XSP||iShares Core S&P 500 Index ETF (CAD- Hedged)||0.10||0.11|
|XIC||iShares Core S&P/TSX Capped Composite Index ETF||0.05||0.06|
|XUS||iShares Core S&P 500 Index ETF||0.10||0.10|
|XQQ||iShares NASDAQ 100 Index ETF (CAD-Hedged)||0.35||0.39|
Low Volatility ETFs
When it comes to low Beta ETFs, the returns and the spikes up and down are usually lower. This also means that when the main indexes goes up or down 50%, the low volatility ETFs go up or down about 25%. The fees are higher than the main index tracking ETFs.
|XML||iShares Edge MSCI Min Vol EAFE Index ETF (CAD-Hedged)||0.35||–|
|XMS||iShares Edge MSCI Min Vol USA Index ETF (CAD-Hedged)||0.30||0.34|
|XMY||iShares Edge MSCI Min Vol Global Index ETF (CAD-Hedged)||0.45||–|
|XMI||iShares Edge MSCI Min Vol EAFE Index ETF||0.35||0.37|
|XMU||iShares Edge MSCI Min Vol USA Index ETF||0.30||0.34|
|XMW||iShares Edge MSCI Min Vol Global Index ETF||0.45||0.48|
|XMV||iShares Edge MSCI Min Vol Canada Index ETF||0.30||0.35|
|XMM||iShares Edge MSCI Min Vol Emerging Markets Index ETF||0.79||0.43|
High dividend paying equity ETFs
For those who prefer high dividends, the following are options. Unfortunately, the MERs are higher when compared to the index tracking ETFs. Furthermore, there is no guarantees that the company will continue to pay the high dividends. Therefore, the company maybe removed from the high dividend paying ETF(s).
|XDV||iShares Canadian Select Dividend Index ETF||0.50||0.56|
|CPD||iShares S&P/TSX Canadian Preferred Share Index ETF||0.45||0.51|
|CDZ||iShares S&P/TSX Canadian Dividend Aristocrats Index ETF||0.60||0.67|
|XPF||iShares S&P/TSX North American Preferred Stock Index ETF (CAD-Hedged)||0.45||0.47|
|XHD||iShares U.S. High Dividend Equity Index ETF (CAD-Hedged)||0.30||0.34|
|CYH||iShares Global Monthly Dividend Index ETF (CAD-Hedged)||0.60||0.66|
|XHU||iShares U.S. High Dividend Equity Index ETF||0.30||0.34|
|CUD||iShares US Dividend Growers Index ETF (CAD-Hedged)||0.60||0.67|