ETFs

Great choices for commission-free1 online investing.

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

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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.

Analyst

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.

Arbitrage

Profiting from differences in the price of a single security that is traded on more than one market.

Bear

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.

Bull

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.

Buyout

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.

Confirmation

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.

Dividend

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.

Exchange

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.

Liquidity/dt>

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.

Prospectus

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.

Proxy

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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SEC

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
Canadian Specialty
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
Broad Market
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
Large-Cap
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
Custom
DVY iShares Dow Jones Select Dividend
PWC PowerShares Dynamic Market Portfolio
PWO PowerShares Dynamic OTC Portfolio
Mid-Cap
MDY Standard & Poors Mid-Cap 400 Depositary Receipts
IJH iShares S&P Mid-Cap 400
IWR iShares Russell Mid-Cap
VO Vanguard Mid-Cap
Small-Cap
IJR iShares S&P Small-Cap 600
IWM iShares Russell 2000
VB Vanguard Small-Cap
US Style ETFs
Broad Market Growth
IWZ iShares Russell 3000 Growth
Broad Market Value
IWW iShares Russell 3000 Value
Large-Cap Growth
IVW iShares S&P 500 Growth Index
IWF iShares Russell 1000 Growth
VUG Vanguard Growth
Large-Cap Value
IVE iShares S&P 500 Value Index
IWD iShares Russell 1000 Value
VTV Vanguard Value
Mid-Cap Growth
IJK iShares S&P Mid-Cap 400 Growth
IWP iShares Russell Mid-Cap Growth
Mid-Cap Value
IJJ iShares S&P Mid-Cap 400 Value Index
IWS iShares Russell Mid-Cap Value
Small-Cap Growth
IJT iShares S&P Small-Cap 600 Growth
IWO iShares Russell 2000 Growth
VBK Vanguard Small-Cap Growth
Small-Cap Value
IJS iShares S&P Small-Cap 600 Value Index
IWN iShares Russell 2000 Value
VBR Vanguard Small-Cap Value
US Sector ETFs
Consumer Discretionary
XLY Consumer Discretionary Select Sector SPDR
IYC iShares DJ US Consumer Services
RTH Retail HOLDRS
VCR Vanguard Consumer Discretionary
Consumer Staples
XLP Consumer Staples Select Sector SPDR
IYK iShares DJ US Consumer Goods
VDC Vanguard Consumer Staples
Energy
XLE Energy Select Sector SPDR
IYE iShares DJ US Energy Sector
OIH Oil Service HOLDRS
Financials
XLF Financial Select Sector SPDR
IYF iShares DJ US Financial Sector
VFH Vanguard Financials
IYG iShares DJ US Financial Services
RKH Regional Bank HOLDRS
Health Care
XLV Health Care Select Sector SPDR
IYH iShares DJ US Healthcare Sector
VHT Vanguard Health Care
IBB iShares NASDAQ Biotechnology Index
BBH Biotech HOLDRS
PPH Pharmaceutical HOLDRS
Industrials
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
HHH Internet HOLDRS
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
BDH Broadband HOLDRS
SMH Semiconductor HOLDRS
SWH Software HOLDRS
Materials
XLB Materials Select Sector SPDR
IYM iShares DJ US Basic Materials Sector
VAW Vanguard Materials
Natural Resources
IGE iShares S&P NA Natural Resources
Real Estate
IYR iShares DJ US Real Estate
ICF iShares Cohen & Steers Realty Majors
RWR SPDR DJ Wilshire REIT
Telecommunications
IYZ iShares DJ US Telecom Sector
TTH Telecom HOLDRS
WMH Wireless HOLDRS
Utilities
IDU iShares DJ US Utilities Sector
XLU Utilities Select Sector SPDR
UTH Utilities HOLDRS
VPU Vanguard Utilities
International ETFs
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
Asia/Pacific
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
Europe
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
Americas
EWZ iShares MSCI Brazil
EWC iShares MSCI Canada
EWW iShares MSCI Mexico
EMEA
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.

Learn more about this special offer.

  • 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.