An ETF for every occasion

There are roughly 4,000 exchange traded funds on the market. I say ‘roughly’ because it seems a new one is being launched every few minutes…hey, there’s another one. You name an index and there’s a corresponding ETF. If an index doesn’t exist, ETF providers will create one. There are even complicated hedge-related ETFs - including some that can take double short and double long positions on commodities like gold.

There’s a running joke around the BNN newsroom: I wonder when they will launch an ETF, ETF? When I told that one to Pur Investing president and CEO Mark Yamada he laughed - stopped short - and said: “actually, I think there is one.”

It’s no joke. Retail investors have taken a shine to ETFs. Maybe it’s the low fees; maybe it comes from general disillusionment at active mutual fund managers in the wake of the 2008 market meltdown. Either way, many retail investors have opted to create entire ETF portfolios. If that’s the case, it’s important to remember the same rules of diversification apply.

That’s where Mark Yamada comes in. Pur Investing has a screener on its website that presents ETFs based on asset classes, geography, fees and other criteria that go into creating the right asset mix. It’s not the only ETF screener on the Internet but give it a try…right after you watch this interview.

Dale Jackson is a producer at BNN. He also dispenses personal finance advice on The Street three times a week. 

From personal finance tips to expert investing strategies, learn to sort through your options this RRSP season on The BNN Portfolio Builder. Weekdays @ 2:20p ET / 11:20a PT. Click here for more.

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