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Exchange-traded funds, also known as ETFs, are a basket of stocks or securities that track a specific market index or sector group. ETFs offer the diversification of mutual funds, but trade like individual stocks on the major stock exchanges and can be bought or sold throughout the trading day.
With a recent gain in popularity, there are many ETFs covering new sectors and with different types of features. Some new ETFs are designed to do more than track an index. And, many investors are taking advantage of ETFs in innovative ways.
Benefits of investing in ETFs include:
- Diversification
- Liquidity
- Low fees
- Reduced risk
- Flexibility
- Greater transparency
- Tax efficiency
ETF Centre -To help investors make educated decisions about their ETF purchases, RBC Direct Investing has created our ETF Centre – providing one location to access everything you need to know about find the right ETF for your portfolio.
ETF Model Portfolios – ETFs made easy. Designed by RBC Dominion Securities, you can use these models to generate investment ideas. Or, you can choose to match the model by purchasing the ETFs.
Learn about ETFs – If you are just getting started investing or would like to learn more about ETFs, the Exchange-Traded Funds section within our Investment Products should be your first stop. In the section you can explore the basics, the different types of ETFs, key benefits of investing in ETFS, and risk versus return. The section also includes answers to questions often asked about ETFs.
The Investment Products tab includes a wealth of information on a variety of other investment choices including mutual funds, stocks, options, fixed income, initial public offerings (IPOs) and more.
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