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The popularity of exchange-traded funds (ETFs) in Canada continues to surge and 31% of domestic investors now report they own ETFs, says BlackRock Canada’s first-ever ETF Pulse Survey, released Friday.
Furthermore, 93% of existing ETF owners and 38% of non-owners are interested in buying ETFs in the next 12 months. The survey suggests education plays a big role in the adoption of ETFs: more than half of Canadian investors plan to learn more about ETFs in 2017 and non ETF investors are more than twice as likely to seek out more ETF knowledge next year.
41% are replacing mutual funds with ETFs
Not surprisingly, the survey found that 41% of investors polled are choosing ETFs largely to replace mutual funds while 45% are doing so to replace individual stocks. Improved diversification was cited by 53% while 43% felt ETFs would help reduce their risk profile. BlackRock added that these findings are consistent with a Greenwich Survey of Canadian institutional ETF users, which pointed to a rise in ETF allocations among institutional investors in the coming year.
My latest MoneySense Retired Money column on TFSAs is now online. You can read the whole thing by clicking on this highlighted link: How retirees can use TFSAs to save on tax.
I’m a huge fan of The Tax-free Savings Account or TFSA both for young people and for seniors, and everyone between.
It’s the single most powerful investment tax shelter available to Canadian investors. (For any American readers, the TFSA is roughly the equivalent of Roth IRAs).
So if you’re a member of the much-touted “Millennial” generation, you should move heaven or earth to maximize the annual $5,500 contribution as soon as you turn 18 – even if you have to solicit a “matching” contribution from your parents.
If you’ve not yet opened up a TFSA, as of 2017 the cumulative TFSA room built up since the plan’s debut in 2009 will be $52,000. As I say in the column, for millennials the combination of the newly expanded Canada Pension Plan and a TFSA maximized from age 18 on means that by the time they are old enough to read the Retired Money column, they will be well positioned for retirement.
While late for Boomers, TFSAs can still be a boon in retirement
But as this particular MoneySense column has been dubbed “Retired Money,” the focus is on what the TFSA can do for near-retirees and seniors already retired. When it first came out in 2009, we aging baby boomers lamented the fact the TFSA hadn’t been available when we we were just starting out.
When it comes to choosing a credit card, it’s easy to feel overwhelmed by the number of different options available. Although it might seem simplest to choose one with your current bank or go with whatever your friends use, you could be leaving rewards such as cash back on the table by taking a one-size-fits-all approach.
Here are four common profiles and the best type of credit card for each.
Frequent flyer
Making the most of vacation days can be expensive, especially if you like to travel. However, you can often help offset these costs using a travel rewards credit card. There are some great travel rewards programs in Canada where you can start collecting points. But because each program is different, make sure you know how they work.
The BMO Rewards Program is a good example, because for every dollar you spend you can earn up to two points. You can then redeem 100 points for $1 back on a wide range of categories including flights, hotels, car rentals and even merchandise or gift cards. Your everyday spending can really start to add up – for example, if you spend $1,500 a month using the BMO World Elite MasterCard, after a year you would have enough points to redeem $360 in value.
Travel cards often also offer good value because most come with a range of insurance benefits such as lost or delayed baggage, trip delay or cancellation and medical coverage. You can then relax on your travels, knowing that if something does go wrong, you’ll be covered.
Big spender
If you like to use your credit card for most of your everyday purchases and bills, you should look to maximize your rewards with a premium rewards credit card. Many of these cards have an annual fee, but if you’re a big spender, the net reward from premium cards are often much higher because the earning potential is usually much higher than with no fee credit cards.
The best rewards cards typically fall into two categories – travel and cash back. If you’ve decided that you don’t fit into the frequent flyer category above, consider instead a cash back credit card. With this type of card, the amount you can redeem typically starts at around 1%, but can get as high as 4% or even more with special promotions.
Get the coffee brewing and put your game face on! Thanks to our American neighbours, Black Friday and Cyber Monday sales are about to kick off the busiest shopping season of the year, with deep discounts and exclusive online offers.
Canadians are feeling pretty generous this holiday season, with 84 per cent saying they plan on spending almost $200 more than last year, according to our recent Ebates.ca poll. Whether looking for deals in Canada or across the border, more Canadians are turning to online shopping to avoid the chaos, with 82 per cent saying they will make at least some holiday purchases online.
While you won’t need a helmet and elbow pads to score a deal for these two big shopping days, a little preparation and some savvy strategies will help make sure you stay ahead of the competition – and within your budget.
Don’t believe the hype
The best way to know whether a deal is really a deal is to do your research beforehand. Make a list of items that you’re interested in, then do some recon to compare prices, features, quality and special offers across various retailers. You may find a similar item to what you’re looking for that is a better deal, or at the very least, you’ll have a solid back-up choice that you can still be confident buying.
Limit your spend
It’s easy to get carried away in the chase for a deal, but it’s important to set yourself limits or you risk blowing your budget: game over! Stick to the items on your budgeted list and avoid impulse purchases. That ‘blowout’ price may seem cheap in the moment, but is it really worth it if your purchase sits in your closet or on a shelf, unused?
All over the world, trading markets are rapidly evolving. There are a lot of factors influencing the difference in the high and low of global currencies. In America, the influencing factors only get bigger: talk of oil prices, the outcome of the election, and many more factors. Currency pairs are moving with the market trends. What exactly does this mean for forex traders? The market can be lucrative, and it can be resilient.
In the past few weeks, a lot has happened in forex trading that the investors of this market should be aware of. Risky trends in the market have been amplified lately, but with the American Thanksgiving holiday coming up soon, forex traders in the U.S. are looking at some sort of break, but this time off from the market trends also means a period away from the optimism that some currencies were showing in the past week.
How commodities impact Forex
The market is still recovering from the somewhat aggressive election run by Trump and Clinton. Other trading commodities that influence the Forex Trading market, like oil and gold, also experience major changes. Thanksgiving, in the past, has rigged the market of its liquidity. The S&P 500, for instance, hits some of its highs during such holidays, leading many investors to believe that holiday cheer is an influential factor that can move the market from a low to a high.
Oil rigs moved from 452 to 471 in just a week, while gold is making a move towards $1,200. Last week, US stocks were trading at a low thanks to the loss of the bias previously owned by the GBP/USD currency trading pair. The Fed is looking to diversify some of its policies so as to help strengthen the current position of the dollar in the market. The position of the Euro, on the other hand, might just be about to get very interesting given the current market flux in Europe. Forex traders should consider the word of trading experts before placing their investments on any currency combinations in the current risky markets.Continue Reading…
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