ETF (Exchange Traded Fund)

ETFs hold a basket (usually an index) and their units list on the Toronto Stock Exchange. You buy them through any brokerage account at intra-day prices, not at end-of-day NAV. The big Canadian all-in-one ETFs are XEQT (iShares), VEQT (Vanguard), and ZEQT (BMO), each holding a globally diversified equity portfolio at roughly 0.20% MER. For a single Canadian index, XIC tracks the S&P/TSX Capped Composite at 0.06%. Most major Canadian brokerages now offer commission-free ETF trades, which makes ETFs cheaper to own than mutual funds for nearly every Canadian investor.