Exchange-traded funds3 (ETFs) are among the fastest growing investment products in today's global marketplace. Built like mutual funds, ETFs consist of a portfolio of investment products, but they trade like individual stocks on major stock exchanges and can be bought or sold at any time throughout the trading day
Some of the potential benefits3
- Low cost way to invest in the market and access opportunities
- Remain liquid regardless of trading volume
- Provide a tax efficient structure with low turnover
- Transparent and accessible holdings can be reviewed at any time and are updated daily
- Provide increased diversification and reduced risk by holding a basket
- Efficiently access a broad range of asset classes and investing themes
To learn how to purchase ETFs, visit Trading Basics
- American depositary receipts
Certificates issued by a U.S. Depositary Bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are "sponsored" the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADR's. "Unsponsored" ADR's do not receive such assistance. ADR's carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the SDR/ordinary ratio, are kept essentially identical by arbitrage. American Depositary Shares (ADS) are a similar form of certification.
Employee of a brokerage or fund management house who studies companies and makes buy and sell recommendations on their stocks. Most specialize in a specific industry.
- Annual report
Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, its balance sheet and income statement. Regulators require that it be distributed to all shareholders. In the US, a more detailed version is called a 10-K.
Profiting from differences in the price of a single security that is traded on more than one market.
An investor who believes a stock or the overall market will decline. A bear market is a prolonged period of falling stock prices, usually by 20% or more.
- Beta (Stocks)
Measure of a stock's risk in relation to the market. 0.7 means a stock price is likely to move up or down 70 % of the market change; 1.3 means the stock is likely to move up or down 30 % more than the market.
- Bid price
The highest price a prospective buyer or dealer is willing to pay.
An investor who thinks the market will rise.
- Bulletin board stocks
Certain stocks not specifically authorized to trade within NASDAQ which were originally printed by the National Quotation Bureau in a daily publication called the pink sheets. Prices given for these stocks may not accurately reflect the most current market conditions for the stock.
Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buyout is done with borrowed money.
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- Capital gains
If your company's stock price increases, you will be presented with the opportunity for a "capital gain" which is the profit between what you originally paid for the stock and the higher price you sell it for.
- Cash dividends
Cash dividends represent the stockholders share of the company profits. Companies are not legally bound to pay dividends and many companies do not for various reasons. However, if a company does pay out dividends, they are usually paid out once each quarter. Dividends are frequently discussed in terms of "payout ratio" and "yield."
- Closing purchase
A transaction in which the purchaser's intention is to reduce or eliminate a short position in a stock, or in a given series of options.
The written statement that follows any "trade" in the securities markets. Confirmation is issued immediately after a trade is executed. It spells out settlement date, terms, commission, etc.
- CUSIP number
The Committee on Uniform Security Identification Procedures was established under the auspices of the American Bankers Association to develop a uniform method of identifying municipal, government and corporate securities.
- Day order
An order to buy or sell stock that automatically expires if it can't be executed on the day it is entered.
Distribution of a portion of a company's earnings, cash flow or capital to shareholders, in cash or additional stock.
- Dividend yield
Is calculated by dividing the annual dividend payment by the per share price you paid for the stock. Thus, if you paid $10 per share and received $0.20 in dividends, your dividend yield would be 2 percent.
The marketplace in which shares, options and futures on stocks, bonds, commodities and indices are traded. Principal Canadian stock exchanges are: Toronto Stock Exchange (TMX Group), and the TSX Venture Exchange (TSXV). Principal US stock exchanges are: New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASDAQ).
- Ex-dividend date
The first day of trading when the seller, rather than the buyer, of a stock will be entitled to the most recently announced dividend. A stock that has gone ex-dividend is marked with an x in newspaper listings on that date.
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- Good 'til cancelled
Sometimes simply called "GTC", it means an order to buy or sell stock that is good until you cancel it. Brokerages usually set a limit of 30-60 days, at which the GTC expires if not restated.
- Initial public offering (IPO)
A company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept very large risks for the possibility of large gains.
- Limit order
An order to buy a stock at or below a specified price or to sell a stock at or above a specified price. For instance, you could tell a broker "Buy me 100 shares of xyz Corp at $8 or less" or to "sell 100 shares of xyz at $10 or better."
- Limited liability
You cannot be held personally liable for the debts or for the actions of a company in which you invest, and generally cannot lose more than the amount of your investment even if the company goes bankrupt.
The degree to which a security can be bought or sold, without affecting the market price. Something which trades frequently and with high volume is more liquid than something which trades infrequently or with little volume.
- Market capitalization
The total dollar value of all outstanding shares. Computed as shares multiplied by current market price. It is a measure of corporate size.
- Market order
An order to buy or sell a stock at the current price.
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- Over-the-counter (OTC)
A security which is not traded on an exchange, usually due to an inability to meet listing requirements, is said to trade Over-The-Counter. For such securities, broker/dealers negotiate directly with one another over computer networks and by phone, and the NASD monitors their activities. See also OTC Bulletin Board, Pink Sheets and Bulletin Board Stocks.
- OTC bulletin board
A US electronic quotation system for unlisted, non-Nasdaq, over-the-counter securities
- Payment date
Date on which a declared stock dividend or a bond interest payment is scheduled to be made.
- Payout ratio
Is calculated by dividing the annual dividend payment by the annual earnings per share. For example, if ABC Company had earnings per share of $1.00 and paid out $0.05 per quarter or $0.20 annually in dividends, its payout ratio would be 20 percent.
- Pink sheets
A daily listing of bid and ask prices for over-the-counter stocks not included in the daily NASDAQ over-the-counter listings, published by the National Quotation Bureau and used by brokerages.
Formal written document to sell securities that describes the plan for a proposed business enterprise, or the facts concerning an existing one, that an investor needs to make an informed decision. Prospectuses are used by Mutual Funds to describe the fund objectives, risks and other essential information.
Document intended to provide shareholders with information necessary to vote in an informed manner on matters to be brought up at a stockholders' meeting. Includes information on closely held shares. Shareholders can and often do give management their pro xy, representing the right and responsibility to vote their shares as specified in the proxy statement.
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- Record date
Date by which a shareholder must officially own shares in order to be paid a dividend or other distribution. For example, a firm might declare a dividend on Nov 1, payable Dec 1 to holders of record Nov 15. Once a trade is executed an investor becomes the "owner of record" on settlement date, which currently occurs 3 business days after the trade date for securities.
- Reverse stcok split
A proportionate decrease in the number of shares, but not the value of shares of stock held by shareholders. Shareholders maintain the same percentage of equity as before the split. For example, a 1-for-3 split would result in stockholders owning 1 share for every 3 shares owned before the split. A firm generally institutes a reverse split to boost its stock's market price and attract investors.
- Rights offering
Issuance of "rights" to current shareholders allowing them to purchase additional shares, usually at a discount to market price. Shareholders who do not exercise these rights are usually diluted by the offering. Rights are often transferable, allowing the holder to sell them on the open market to others who may wish to exercise them. Rights offerings are particularly common to closed end funds, which cannot otherwise issue additional common stock.
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The Securities and Exchange Commission, the US primary federal regulatory agency of the securities industry.
- Selling short
If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy the stock back on the open market. For instance, the investor borrows 1000 shares of XYZ on July 1 and sells it for $8 per share. Then, on Aug 1, the investor purchases 1000 shares of XYZ at $7 per share. The investor has made $1000 (less commissions and other fees) by selling short.
- Settlement date
The month, day, and year the transaction will settle. As per industry standards, settlement occurs within 3 days after the transaction date for Equities.
- Share repurchase
Program by which a corporation buys back its own shares in the open market. It is usually done when the company thinks its shares are undervalued. Since it reduces the number of shares outstanding and thus increases earnings per share, it tends to elevate the market value of the remaining shares held by stockholders.
- Short sale
Selling a security that the seller does not own but is committed to repurchasing eventually. It is used to capitalize on an expected decline in the security's price.
- Stock dividends
Companies sometimes pay out dividends in stock. For example, if a company declares a 10% stock dividend that means that the number of shares you own will be increased by 10%. Although you are getting additional shares, you must remember that your total ownership of the company has not increased. The proportionate ownership of all shareholders has been increased equally by 10 percent. Another point to keep in mind is that unlike cash dividends, stock dividends are not necessarily taxed in the same way as cash dividends.
- Stock split
Companies frequently increase or decrease their number of shares outstanding by splitting the stock. An example explains the process best. Say you own 200 shares of ABC Inc., which has 100,000 shares outstanding, trades on the NYSE for $80 per share, and earns $4.00 per share. Then ABC declares a 2 for 1 split. You will now get one additional share of ABC for each share that you already own for a total of 400 shares. At the same time, ABC will now have 200,000 total shares outstanding and all of its applicable ratios will be divided by this higher number. For example, its earnings per share will be $2.00 and its price will be $40.00. In other words, the total pie is the same size, it's merely been divided into smaller pieces.
- Stop loss order
An order to sell a stock when the price falls to a specified level.
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- Trade date
The date on which a trade occurs. Trades generally settle (are paid for) 1-3 business days after the trade date. With stocks, settlement is generally 3 business days after the trade date.
- Voting rights
You can vote on company issues such as electing the board of directors and issuing new securities. In most cases, you will receive a ballot form, known as a "proxy" that you can mail back to the company.
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Below you will find a representative list of exchange traded funds available. This is not intended to be a complete list. For more information on additional ETF's, please contact the Scotia iTRADE Customer Service & Trading Desk.
|Ticker||Canadian Exchange Traded Fund4|
|Canadian Equity (Pure)|
|XIC||IUNITS COMPOSITE CDN EQUITY CAPPED INDEX FUND|
|XIU||iUNITS S&P®/TSX® 60 INDEX FUND|
|XMD||iUNITS S&P/TSX COMPLETION INDEX FUND|
|Canadian Sector Funds|
|XEG||iUNITS S&P/TSX CAPPED ENERGY INDEX FUND|
|XIT||iUNITS S&P/TSX CAPPED INFORMATION TECHNOLOGY INDEX FUND|
|XGD||iUNITS S&P/TSX CAPPED GOLD INDEX FUND|
|XFN||iUNITS S&P/TSX CAPPED FINANCIALS INDEX FUND|
|XMA||iUNITS MATERIALS SECTOR INDEX FUND|
|IGT||iSHARES GOLD TRUST|
|XRE||iUNITS S&P/TSX CAPPED REIT INDEX FUND|
|XTR||iUNITS DIVERSIFIED MONTHLY INCOME FUND|
|XDV||iUNITS DOW JONES CANADIAN SELECT DIVIDEND INDEX FUND|
|Canadian Fixed Income|
|XSB||iUNITS SHORT TERM BOND INDEX FUND|
|XBB||iUNITS DEX UNIVERSE BOND FUND|
|XRB||iUNITS DEX REAL RETURN BOND INDEX FUND|
|International Equity Funds|
|XSP||iUnits S&P 500 Index Fund C$ HEDGED|
|XIN||iUnits MCSI EAFE INDES FUND C$ HEDGED|
|Ticker||U.S. Exchange Traded Fund|
|US Major Market ETFs|
|VTI||Vanguard Total Stock Market|
|IWV||iShares Russell 3000|
|IYY||iShares DJ US Total Market|
|ISI||iShares S&P 1500|
|ONEQ||Fidelity Nasdaq Composite Index Tracking Stock|
|NYC||iShares NYSE Composite|
|VXF||Vanguard Extended Markets|
|DIA||SPDR Dow Jones Industrial Average|
|QQQ||Powershares QQQ Trust Series 1|
|NY||iShares NYSE 100|
|OEF||iShares S&P 100|
|IVV||iShares S&P 500|
|SPY||SPDR S&P 500|
|VV||Vanguard Large Cap|
|IWB||iShares Russell 1000|
|RSP||Rydex S&P Equal Weight|
|DVY||iShares Dow Jones Select Dividend|
|PWC||PowerShares Dynamic Market Portfolio|
|PWO||PowerShares Dynamic OTC Portfolio|
|MDY||Standard & Poors Mid-Cap 400 Depositary Receipts|
|IJH||iShares S&P Mid-Cap 400|
|IWR||iShares Russell Mid-Cap|
|IJR||iShares S&P Small-Cap 600|
|IWM||iShares Russell 2000|
|US Style ETFs|
|Broad Market Growth|
|IWZ||iShares Russell 3000 Growth|
|Broad Market Value|
|IWW||iShares Russell 3000 Value|
|IVW||iShares S&P 500 Growth Index|
|IWF||iShares Russell 1000 Growth|
|IVE||iShares S&P 500 Value Index|
|IWD||iShares Russell 1000 Value|
|IJK||iShares S&P Mid-Cap 400 Growth|
|IWP||iShares Russell Mid-Cap Growth|
|IJJ||iShares S&P Mid-Cap 400 Value Index|
|IWS||iShares Russell Mid-Cap Value|
|IJT||iShares S&P Small-Cap 600 Growth|
|IWO||iShares Russell 2000 Growth|
|VBK||Vanguard Small-Cap Growth|
|IJS||iShares S&P Small-Cap 600 Value Index|
|IWN||iShares Russell 2000 Value|
|VBR||Vanguard Small-Cap Value|
|US Sector ETFs|
|XLY||Consumer Discretionary Select Sector SPDR|
|IYC||iShares DJ US Consumer Services|
|VCR||Vanguard Consumer Discretionary|
|XLP||Consumer Staples Select Sector SPDR|
|IYK||iShares DJ US Consumer Goods|
|VDC||Vanguard Consumer Staples|
|XLE||Energy Select Sector SPDR|
|IYE||iShares DJ US Energy Sector|
|OIH||Oil Service HOLDRS|
|XLF||Financial Select Sector SPDR|
|IYF||iShares DJ US Financial Sector|
|IYG||iShares DJ US Financial Services|
|RKH||Regional Bank HOLDRS|
|XLV||Health Care Select Sector SPDR|
|IYH||iShares DJ US Healthcare Sector|
|VHT||Vanguard Health Care|
|IBB||iShares NASDAQ Biotechnology Index|
|XLI||Industrial Select Sector SPDR|
|IYT||iShares DJ Transportation Average|
|IYJ||iShares DJ US Industrial Sector|
|Information Technology- Broad Based|
|XLK||Technology Select Sector SPDR|
|IYW||iShares DJ US Technology Sector|
|IGM||iShares North American Tech. Sector Index|
|MTK||SPDR Morgan Stanley Technology|
|VGT||Vanguard Information Technology|
|Information Technology- Internet|
|BHH||B2B Internet HOLDRS|
|IAH||Internet Architecture HOLDRS|
|IIH||Internet Infrastructure HOLDRS|
|Information Technology- Other|
|IGN||iShares S&P NA Tech- Networking|
|IGW||iShares S&P NA Tech- Semiconductor|
|IGV||iShares S&P NA Tech- Software|
|XLB||Materials Select Sector SPDR|
|IYM||iShares DJ US Basic Materials Sector|
|IGE||iShares S&P NA Natural Resources|
|IYR||iShares DJ US Real Estate|
|ICF||iShares Cohen & Steers Realty Majors|
|RWR||SPDR DJ Wilshire REIT|
|IYZ||iShares DJ US Telecom Sector|
|IDU||iShares DJ US Utilities Sector|
|XLU||Utilities Select Sector SPDR|
|Broad Based - International|
|EFA||iShares MSCI EAFE|
|ADRD||BLDRS Developed Markets 100 ADR|
|EEM||iShares MSCI Emerging Markets|
|ADRE||BLDRS Emerging Markets 50 ADR|
|Regional - International|
|ADRU||BLDRS Europe 100 ADR|
|EKH||Europe 2001 HOLDRS|
|EU||SPDR STOXX Europe 50|
|IEV||iShares S&P Europe 350|
|FEZ||SPDR Euro STOXX 50|
|EZU||iShares MSCI EMU|
|ADRA||BLDRS Asia 50 ADR|
|EPP||iShares MSCI Pacific ex-Japan|
|ILF||iShares S&P Latin America 40|
|EWA||iShares MSCI Australia|
|EWH||iShares MSCI Hong Kong|
|EWJ||iShares MSCI Japan|
|ITF||iShares S&P/TOPIX 150|
|EWM||iShares MSCI Malaysia|
|EWS||iShares MSCI Singapore|
|EWY||iShares MSCI South Korea|
|EWT||iShares MSCI Taiwan|
|EWO||iShares MSCI Austria|
|EWK||iShares MSCI Belgium|
|EWQ||iShares MSCI France|
|EWG||iShares MSCI Germany|
|EWI||iShares MSCI Italy|
|EWN||iShares MSCI Netherlands|
|EWP||iShares MSCI Spain|
|EWD||iShares MSCI Sweden|
|EWL||iShares MSCI Switzerland|
|EWU||iShares MSCI United Kingdom|
|EWZ||iShares MSCI Brazil|
|EWC||iShares MSCI Canada|
|EWW||iShares MSCI Mexico|
|EZA||iShares MSCI South Africa|
|Broad Based - Global|
|DGT||SPDR DJ Global Titans|
|IOO||iShares S&P Global 100|
|MKH||Market 2000+ HOLDRS|
|Sectors - Global|
|IXC||iShares S&P Global Energy Sector|
|IXG||iShares S&P Global Financial Sector|
|IXJ||iShares S&P Global Healthcare Sector|
|IXN||iShares S&P Global Technology Sector|
|IXP||iShares S&P Global Telecommunications|
|US Fixed Income ETFs|
|SHY||iShares Lehman 1-3 Year Treasury|
|IEF||iShares Lehman 7-10 Year Treasury|
|TLT||iShares Lehman 20+ Year Treasury|
|LQD||iShares iBoxx $ Invest Grade Corporate|
|AGG||iShares Barclays Aggregate Bond|
|TIP||iShares Barclays TIPS Bond Fund|
Expenses for HOLDRs consist of a custody fee of $2 per round lot (100 shares) per quarter. However, according to the HOLDRs prospectus, the trustee will waive that portion of the fee which exceeds the total cash distributions
Commission-Free1 Online ETF Trading
Scotia iTRADE has partnered with iShares to bring you commission-free1 online trading on 50 ETFs, covering a vast array of sectors, from iShares®* and other leading Canadian ETF providers.
- 1 Refers to Scotia iTRADE's brokerage commission for online trade execution only. Does not take into account fees, charges, expenses or commissions imposed by the fund companies, all of which can be associated with ETF investments. You should carefully consider the fund's investment objectives, risks, fees, charges, expenses and commissions before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before investing. Funds are not guaranteed, their values change frequently and past performance may not be repeated. For a list of ETFs eligible for our "commission-free" offer ("Eligible ETFs"), click here. In order to qualify, trades of Eligible ETFs must be placed online or via Teletrader. You will be charged our regular equity commission (from $4.99, $6.99, $9.99, or $24.99 up to 1000 shares, $0.03 per share for orders over 1000 shares) depending on the pricing tier for which you qualify – see online fee schedule) on the sale of any Eligible ETFs held for less than 1 business day. Broker-assisted trades are subject to a fee of $45.00. List of Eligible ETFs is subject to change without notice. Scotia iTRADE reserves the right to modify or cancel this offer at any time without notice.
- 2 This advertisement has been paid for in part by BlackRock Investments Canada Inc. (BlackRock). Scotia iTRADE does not provide investment advice or recommendations and you are responsible for your own investment decisions and any losses that may result. This offer is not and should not be construed as investment advice or a recommendation to buy, sell or hold any particular security or to follow any particular investment strategy. No ETF product, or any information provided by or available through BlackRock or any other ETF provider, has been endorsed, validated or approved by Scotia Capital Inc. or its affiliates, and neither Scotia Capital Inc. nor any of its affiliates is responsible or liable therefore, or for any third party products, opinions, information or prospectus content.
- ®* iShares® is a registered trade-mark of BlackRock Institutional Trust Company, N.A. Used under license. BlackRock® is a registered trade-mark of BlackRock, Inc. Used with permission.
- 3 Please note that this list of eligible ETFs is subject to change without notice. These links are provided as a convenience only and are not to be construed as investment advice or as a recommendation to buy, sell or hold any particular security or to follow any particular investment strategy. No ETF product, or any information provided by or available through iShares1 or any other ETF provider', or through any of their respective websites, has been endorsed, validated or approved by Scotia Capital Inc. or its affiliates, and neither Scotia Capital Inc. nor any of its affiliates is responsible or liable therefore, or for any third party products, services, opinions, information or prospectus content, including that of BlackRock Investments Canada Inc. and/or any other ETF providers. Scotia iTRADE does not provide investment advice or recommendations, and you are responsible for your own investment decisions.
- 4 Information is provided to you for general information purposes only, and is not intended and should not be construed as investment advice, legal advice or tax advice of any kind. Scotia iTRADE does not provide investment advice or recommendations and investors are responsible for their own investment decisions.