ETFs to Consider for Your RRSP

Wondering where to invest? Start your research here!

Ian Tam, CFA 23 February, 2021 | 2:51AM
Facebook Twitter LinkedIn

Coins

Yesterday, I wrote about some mutual funds choices for your RRSP. Today we turn our attention to exchange traded funds, or ETFs.

The world of ETFs in Canada has evolved quickly. What was once a handful of indexed products is now a universe of over 1000 vehicles from Canadian-domiciled fund manufacturers. Suffice to say, not all ETFs are created equal. Though the choices can seem overwhelming, there are 3 main types of ETFs in Canada:

1. Passive or Indexed ETFs: These are the most well-known school of ETFs, low cost and designed to track an index. These lower costs can impact your investment substantially over time when compounded, especially in an RRSP account which is designed to largely be left alone until you retire.

2. Strategic Beta ETFs: These straddle the line between active and passive. These products leverage quantitative investment techniques to remove much of the human element in investing, with the intent to gain exposure to a specific fundamental factor such as growth, value, quality, momentum, risk or dividends. Like passive investments, they typically charge lower fees than active managers but still provide an active tilt toward a specific investment style.

3. Actively Managed ETFs: These products are like mutual funds, where a manager (a human being) is making decisions either in picking individual securities, or in making broader asset allocation decisions.

Across these three types of ETFs, I used Morningstar Direct to screen for those in the largest categories in Canada by both the Morningstar Rating (a.k.a. “star rating”) or Morningstar Quantitative Rating or Morningstar Analyst Rating. Click here for a descriptor of both ratings mentioned in the prior article.

Passive or Indexed ETFs 

Name

Ticker

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Want More Actionable Content In Your Inbox?

Sign Up For Our Newsletter Here

Facebook Twitter LinkedIn

About Author

Ian Tam, CFA  is Director of Investment Research at Morningstar Canada. 

 

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies