Do ETFs pay dividends?

Yes, ETFs collect dividends from their investment portfolios and then distribute those dividends to investors on a regular basis, usually quarterly or half-yearly.

Can I invest in ETFs through a robo adviser?

Yes, many robo advisers offer access to diversified ETF portfolios. You can find more info in our robo adviser guide.

Can I track TSX indices with an ETF?

Yes, there are ETFs available that track TSX indices and are traded on the TSX.

What is the minimum amount I can buy when investing in an ETF?

You can purchase as little as one share in an ETF. Some brokers will also let you buy fractional shares of ETFs, so check with your broker to find out if they offer this feature.

Do you pay tax on ETFs?

The tax implications of investing in ETFs vary depending on whether you hold them in a registered account such as a TFSA or in a non-registered account. If held in a non-registered account, you'll need to pay tax on any income and capital gains you earn from your investment. Seek advice from a tax professional for help understanding your tax obligations.

Are ETFs good for beginners?

As a general rule, ETFs offer an easy and convenient way for beginners to start investing. Index ETFs allow you to create a diversified portfolio and are suited to long-term hands-off investing, while you can also get started with a low initial investment.

Can I use a margin loan to buy an ETF?

Yes, you can use a margin loan to fund the purchase of ETF units.

High-interest savings account (HISA) ETFs invest in high-interest savings accounts from a range of financial institutions. They're generally seen as a low-risk investment with the potential to offer higher interest rate returns than you can get with a regular savings account.

What are the best Canadian ETFs?

The best Canadian ETFs for you depend on your investment goals. You need to have a clear idea of your investment timeframe and your risk tolerance before deciding where to invest your money.

Can I buy BMO ETFs in Canada?

Yes. BMO Global Asset Management offers dozens of ETFs to investors. You can buy BMO ETFs through an online brokerage platform.

How do I invest in a Canadian S&P 500 ETF?

You can invest in a Canadian S&P 500 ETF through an online stock trading platform. Simply log in to your account, search for the ETF you want to invest in and place a buy order.

What is an index fund?

Index funds track a selection of stocks that make up an index. For example, the S&P500 and Nasdaq are indices that feature some of the world's biggest companies. An index fund will try to match the returns of its underlying index.

Are ETFs safer than individual stocks?

ETFs can be less risky than individual stocks because they typically hold a diversified mix of investments, reducing the impact of any one company performing poorly. However, there's still a risk to investing in ETFs that depends on the assets they hold. Broad-market ETFs are often less volatile than individual stocks, while sector, leveraged or cryptocurrency ETFs can carry significantly more risk.