Exchange-Traded Funds For Canadians For Dummies

Chapter 15

Working Non-ETFs and Active ETFs into Your Investment Mix

In This Chapter

Incorporating ETFs into an existing portfolio of mutual funds or individual securities

Choosing investments that best complement your ETFs

Taking a chance with active ETFs

It wasn’t that long ago that building an entire, optimally diversified portfolio out of ETFs was just about impossible — sort of like trying to paint a landscape with no blues or yellows. There were holes, and many of them. You could not, for example, buy an ETF that gave you exposure to international bonds. Only one ETF at that time allowed you to tap into international small cap stocks. And none allowed for investing in international REITs.

In 2006, when there were but 300 ETFs around North America from which to choose, many of those tracked the same kinds of investments (such as large cap stocks). You had to look elsewhere if you wished to invest in certain asset classes. Today, the landscape is quite different. Among the more than 1,300 available ETFs, you have blues, yellows, greens . . . an entire palette from which to compose a very well-diversified portfolio. In fact, you have more than enough. Now, not only can you track ...