ETF Madness Playoffs - Special Report

The amount of Exchange-Traded Fund (ETF) options sometimes can be overwhelming for investors. There are over 900 ETFs listed just in Canada. That is about three times the number of stocks on the TSX composite.

At the beginning of 2020, we decided to simulate a competition (ETF Madness) that ran through the year to identify the top ETF for 16 different categories/themes. This special report aims to decide which of the 16 ETFs will come out as “The Ultimate ETF” listed in Canada. The aim is to give readers an idea of our thought process behind how we select ETFs and what the different nuances are to consider when adding an ETF to a portfolio.

Throughout 2020, ETFMU readers had a chance to see us sift through what we consider to be the top ETFs for 16 different ETF categories. The categories can be seen in the tournament chart below, as well as the winners for each category. The candidates that did not quite make the cut in each category (many of which were quite strong) can be reviewed by ETFMU members in the archives of our 2020 ETF newsletters on the website.

Out of each category, we selected a winning ETF, which will compete in the ETF Madness Playoffs for a chance to win the title of “The Ultimate ETF”. The winning ETF will need to pass three elimination rounds.

Here are the key criteria we used to evaluate the ETFs as we go through Round 1 (quarter-finals), Round 2 (semi-finals) and Round 3 (finals):

• How appropriate is the ETF as a core position in the portfolio of an average Canadian investor?

• How well does the fund score on diversification, concentration, investment strategy?

• How reasonable are the fees?

• How the fund has performed?

• What is the size of Assets Under Management (AUM)?

The chart below shows the match-ups for the first round (quarter-finals).

To continue reading and find out which ETF takes home the gold, enter your email below to receive the full 14 page report.