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Glossary

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A

As Of

"As of" indicates the most recent update for the market price (ETF) or NAV (mutual fund).

AUM or Net Assets (M$)

AUM stands for "Assets Under Management." It represents the total market value of all the assets that an investment company or financial institution manages on behalf of its clients. In the context of an ETF, AUM refers to the total value of all the assets held by the ETF, including stocks, bonds, or other securities, based on their current market prices. AUM is a key metric used to gauge the size and popularity of an ETF, as well as its potential liquidity and stability.

Asset Class

"Asset class" refers to the category of underlying securities or assets that the ETF or mutual fund invests in. For example, an ETF may be focused on equities (stocks), fixed income (bonds), commodities, real estate, or a combination of these asset classes. The ETF's investment objective and portfolio composition determine its asset class, and investors often choose ETFs based on their desired exposure to specific asset classes within their investment portfolios.

Active / Passive

Passive ETFs track specific indexes, while active ETFs are managed by professionals aiming to outperform the market. Passive ETFs have lower fees and aim to replicate index performance, while active ETFs have higher fees and involve active management. Investors can choose between the two based on their goals, risk tolerance, and preferences.

Asset Allocation

Asset allocation refers to the strategic distribution of an investor's portfolio across various asset classes, such as stocks, bonds, cash, and Other investments, based on their financial goals, risk tolerance, and time horizon. It aims to optimize returns while managing risk by diversifying investments among different asset categories that may react differently to market conditions. Asset allocation is a fundamental principle of portfolio management, with studies showing it often plays a more significant role in long-term investment success than individual security selection.

Alpha (1y/3y/5y/10y)

Alpha represents the excess return generated by the mutual fund compared to its benchmark index or a risk-free rate of return, after adjusting for the fund's level of risk as measured by its beta. A positive alpha indicates that the fund has outperformed its benchmark index, suggesting that the fund's manager has added value through superior stock selection, timing, or other active management strategies. Conversely, a negative alpha suggests underperformance relative to the benchmark.

B

Benchmark

A "benchmark" is a standard against which the performance of the fund is measured. It's typically an index or a set of indices that represent a specific market or asset class. ETFs often aim to replicate the performance of their benchmark index by holding similar securities in similar proportions. Investors use the benchmark to assess how well the ETF is performing relative to its intended market or investment strategy. Benchmarks for ETFs are determined by Inovestor while mutual funds use the category as a reference point

Bid / Ask

Bid / Ask refers to the prices at which investors can buy (ask price) or sell (bid price) shares of the ETF on the market. The bid price is the highest price a buyer is willing to pay, while the ask price is the lowest price a seller is willing to accept. The difference between these two prices is known as the bid-ask spread, representing the cost of executing a trade in the ETF.

Buyer

In ETF trading, a "buyer" is someone acquiring shares of an ETF on the market. They place buy orders through brokerages to purchase ETF shares at specified prices. Buyers include individuals, traders, or institutions seeking exposure to specific assets or investment strategies offered by ETFs.

Biography

A biography for a portfolio manager should highlight their professional background, expertise, and key accomplishments in the field of investment management.

Best Month

The "best month" refers to the month in which an investment experienced the highest percentage return within a specific time frame.

Best return(%)

The best 1-month return in the last 5 years is the single highest percentage return that occurred within a single month over the past 5 years.

Beta (1y/3y/5y/10y)

Beta is a measure of the ETF's volatility relative to a benchmark index (e.g. S&P/TSX Composite), typically calculated using historical monthly returns over a given time period (e.g. 1Y, 5Y). A beta of 1 indicates that the ETF's price tends to move in line with the index, while a beta greater than 1 suggests higher volatility compared to the index, and a beta less than 1 indicates lower volatility.

C

Currency or Base currency

Base currency refers to the currency in which the fund is primarily denominated or traded. It's the currency against which the ETF's performance and value are typically measured. For example, if an ETF is traded in US dollars (USD), then USD would be its base currency.

Curreny Hedging

Currency hedging in the context of an ETF refers to a strategy used to mitigate the impact of currency fluctuations on the fund's returns. ETFs that employ currency hedging typically use financial instruments such as forward contracts or options to offset the effects of currency movements between the fund's base currency and the currencies of the underlying assets. This strategy aims to stabilize the ETF's returns in the investor's base currency, reducing the risk associated with currency fluctuations. Investors may choose currency-hedged ETFs to manage currency risk when investing in foreign markets or assets denominated in different currencies.

Country

Country refers to the geographical location where the underlying assets of the fund are located or where the companies it invests in are headquartered. ETFs may focus on specific countries or regions, providing investors with exposure to the economies and markets of those countries. Country-specific ETFs allow investors to target opportunities or diversify their portfolios according to their views on specific regions or countries' economic prospects.

Custodian

A "custodian" is a financial institution responsible for safeguarding the assets held within the ETF's portfolio. The custodian holds the securities, cash, and other assets owned by the ETF in custody and ensures their safekeeping. Additionally, the custodian may handle tasks such as settling trades, collecting dividends and interest payments, and providing reports on the ETF's holdings. The custodian plays a critical role in maintaining the integrity and security of the ETF's assets, helping to protect investors' interests.

Category

The CIFSC (Canadian Investment Funds Standards Committee) category is a classification system used in Canada to categorize mutual funds and other investment products based on their investment objectives, asset allocation, and risk profile. It helps investors compare similar funds more easily. There are several CIFSC categories, including Equity, Balanced, Fixed Income, Money Market, and Specialty. Each category represents a specific type of investment strategy or asset class.

Constituents

The top 10 constituents of an Exchange-Traded Fund (ETF) or represent the ten largest holdings within the portfolio by market value. Cash can also be one of the top 10 holding. These holdings typically have a significant influence on the overall performance due to their size and weightage. Investors often pay close attention to the top 10 constituents to understand the exposure to specific companies, sectors, or asset classes. Analyzing these constituents can provide insights into the diversification, concentration risk, and alignment with investment objectives.

Credit Quality

Credit quality refers to the assessment of the creditworthiness of an individual, company, or financial instrument, indicating the likelihood of timely repayment of debt obligations. It's often evaluated, by credit rating agencies, based on factors such as financial stability, repayment history, and economic conditions. These ratings typically range from high quality (e.g., AAA) to quality or (e.g., CCC), providing investors and lenders with an indication of the risk associated with investing in or lending to a particular entity or instrument.

D

Distribution Frequency

Distribution frequency refers to how often an ETF or a mutual fund distribute dividends, interest income or capital to its unitholder. It indicates the frequency at which investors can expect to receive income payments from the ETF or mutual fund. Distribution frequencies can vary and may be monthly, quarterly, semi-annually, or annually, depending on the fund's investment strategy and the types of assets it holds.

Day Range

Day range in the context of an ETF refers to the difference between the highest and lowest prices at which the ETF's shares have traded during a single trading day. It provides insight into the price volatility and trading activity of the ETF within a specific time frame. The day range is often used by investors to assess the intraday movement and potential trading opportunities in the ETF.

Distribution Yield (TTM)

TTM Distribution Yield refers to trailing twelve months distribution divided by the previous day close.

Date

Date refers to the timestamp indicating when the most recent transaction for a security, such as an ETF, occurred. This timestamp typically includes the date and time of the trade, providing information on the latest activity in the market for that particular security. The trade date might not show the latest transaction for the TSX, as the timestamp is sometimes updated only for round lots, which are trades divisible by 100 shares.

Duration

Duration is a measure of the sensitivity of the price of a fixed-income investment, such as a bond or bond fund, to changes in interest rates. It represents the weighted average time it takes for the bond's cash flows to be received, factoring in both coupon payments and the bond's maturity. Duration helps investors understand how much the price of a bond or bond portfolio is likely to change in response to changes in interest rates: higher durations indicate greater sensitivity to interest rate changes, while lower durations imply less sensitivity.

E

Equity Fund Style

Equity fund style refers to the investment strategy employed by funds primarily investing in stocks. Common styles include growth, value, and blend. Growth funds focus on companies with high growth potential, while value funds seek stocks trading at low multiples. Blend funds combine growth and value elements, catering to diverse investor preferences and market conditions. It may depend on various market capitalizations. Large-cap funds target established companies with significant market capitalization, offering stability. Medium-cap funds focus on mid-sized firms, often seeking growth potential with moderate risk. Small-cap funds concentrate on smaller companies, which may offer higher growth potential but typically come with increased volatility and risk.

Economic Region

Economic region refers to a geographic area or group of countries sharing economic characteristics or trade agreements. ETFs focused on economic regions provide investors exposure to the collective economic performance and market dynamics of those areas.

Economic Development

Developed Markets ETF: Invests in companies from advanced economies with established financial markets and robust regulatory frameworks. Emerging Markets ETF: Invests in companies from developing economies with high growth potential and evolving financial markets. Global Markets ETF: Invests in a mix of companies from both developed and emerging economies, combining stability with growth potential.

Eligibility

Canadian ETFs, "eligibility" refers to whether the ETF is eligible to be held within certain registered accounts, such as Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), or Registered Education Savings Plans (RESPs). ETF eligibility for these accounts depends on factors such as the ETF's investment objectives, holdings, and whether it meets the criteria set by the Canada Revenue Agency (CRA) for registered account holdings. ETF providers often specify the eligibility of their funds for registered accounts, allowing investors to make informed decisions when selecting investments for their tax-advantaged accounts.

Exchange

An "exchange" refers to a platform or marketplace where various financial instruments, such as stocks, bonds, commodities, and derivatives, are bought and sold. Exchanges provide a regulated environment for trading, ensuring transparency, liquidity, and fair pricing. Examples in Canada include the Toronto Stock Exchange (TSX), Cboe Canada (CBOECA).

Exch/Mkt

"Exch/Mkt" refers to sub-exchanges or smaller markets within a larger exchange. It can also refer to trading firms executing transactions for their clients These sub-exchanges or trading firms may specialize in specific types of securities, industries, or trading activities.

Ex Date

"Ex Date" refers to the ex-distribution date, which is the date on or after which a security, such as an ETF, trades without its upcoming dividend payment. Investors who purchase the ETF shares on or after the ex-dividend date are not entitled to receive the next dividend payment.The ex-dividend date is crucial for investors as it determines their eligibility to receive dividends and can influence the price of the ETF shares leading up to and following this date.

F

Fiscal Year End

"Fiscal Year End" refers to the completion of the accounting period for the ETF. This period, which may differ from the calendar year, marks the end of the ETF's financial reporting cycle. At the fiscal year end, the ETF's management assesses its financial performance, prepares audited financial statements, and reports to investors. This reporting helps investors understand the ETF's net asset value (NAV), expenses, and distributions, aiding in investment decision-making.

FundGrade

Fundgrade refers to the rating or evaluation assigned to a mutual fund or ETF based on various criteria such as performance, risk, and other qualitative factors. These grades are often provided to help investors assess the quality and suitability of a fund for their investment objectives. Grades may range from letters (such as A, B, C) or numerical scores, indicating the relative strength or weakness of the fund compared to its peers or benchmarks.

G

Geographic Allocation

Geographic allocation refers to the distribution of an ETF's investments across different regions or countries around the world. It indicates the geographical areas where the ETF holds assets, such as stocks or bonds, and reflects the fund's exposure to various economies and markets. Geographic allocation can be an important consideration for investors seeking diversification across different regions or targeting specific geographic regions for investment opportunities or risk management.

H

How to Buy

The ability to sell mutual fund shares is typically facilitated through the fund's management company or a brokerage platform. This indicates the channels through which investors can access the investment product.

I

In percent (%)

In percent indicates a change or return relative to the initial investment or the current value of the ETF. For example, a 5% increase in the value of an ETF means the ETF's price has gone up by 5% relative to its previous value.

In Dollars

In dollars represents the change or return in terms of actual currency units (e.g., USD). For example, if you invest $1000 in an ETF and it gains $50 in value, the increase is expressed as $50

Inverse

Inverse refers to an investment strategy or financial product designed to perform in the opposite direction of a particular benchmark or underlying asset.

L

Last [X] month/year return (%)

Last [X] month return (%) denotes the percentage change in the value of an ETF over the estimation time period. It reflects the performance of the ETF during that specific time period and can provide insight into its short-term or long-term momentum or volatility. Investors often use this metric to assess recent performance trends and make informed decisions about their investments. Past returns do not guarantee future performance.

Leverage

Leverage refers to the use of borrowed capital to increase the potential returns of the fund. Leveraged ETFs seek to amplify the returns of an underlying index or asset class by using leverage, which can magnify gains in a rising market but also increase losses in a declining market. These ETFs are designed for short-term trading and may not be suitable for long-term investors due to their higher risk and potential for volatility.

Listing Type

Unhedged units do not have any currency hedging in place, leaving investors exposed to fluctuations in currency exchange rates. They are typically denominated in the local currency of the underlying assets. Hedged units are designed to mitigate the impact of currency fluctuations by using hedging strategies to offset currency risks. These units are typically denominated in the investor's home currency. USD units are ETF units denominated in US dollars. Common Units refers to the main ETF class

Leverage Factor

Leverage factor in ETFs represents the multiplier applied to daily returns relative to the underlying index. For example, a 2x leveraged ETF aims to provide double the daily returns of its index, while a -1x leveraged ETF seeks to deliver inverse returns. Due to compounding effects, these ETFs are typically used for short-term trading or hedging rather than long-term investing.

Load

Load in investment denotes fees linked to mutual fund transactions. Front-end loads are subtracted from the initial investment, while back-end loads are levied upon redemption. These charges compensate financial advisors and salespersons. Some funds provide "no-load" shares, which lack sales fees but may carry other expenses. Understanding loads is crucial for assessing total investment costs.

Large/Mid/Small

Large, "Mid," and "Small" refer to the market capitalization of mutual funds and ETFs. "Large" typically indicates companies with the highest market capitalization, "Mid" refers to companies with medium-sized market capitalization, and "Small" denotes companies with the smallest market capitalization. ETFs categorized under these labels invest in companies corresponding to their respective market capitalization ranges, providing investors with exposure to different segments of the equity market based on company size.

Low/Med/High

Low, "Med," and "High" are descriptors used to indicate the level of risk associated with fixed income investments and is determined based on the credit quality. "Low" risk suggests investments with a lower likelihood of loss but potentially lower returns. "Med" risk indicates moderate risk levels with balanced potential returns and losses. "High" risk implies investments with greater potential for returns but also a higher likelihood of losses. These risk categories help investors match their risk tolerance with appropriate investment choices.

M

Market Price

The market price refers to the current trading value of an ETF on the open market. This price is determined by supply and demand dynamics and can fluctuate throughout the trading day based on various factors such as investor sentiment, underlying asset performance, and economic conditions.

Management Fee

A management fee is a charge levied by investment funds or financial institutions for overseeing and administering investment portfolios. This fee encompasses expenses related to research, analysis, and operational activities involved in managing the fund's investments. Typically calculated as a percentage of the assets under management (AUM), the management fee is deducted directly from the fund's assets, thereby reducing the overall returns earned by investors.

MER

MER stands for Management Expense Ratio, and it represents the total cost of owning a mutual fund or exchange-traded fund (ETF). The MER includes the management fee, administrative fees, operating expenses, and other costs associated with managing and operating the fund. It is expressed as a percentage of the fund's average net assets and is deducted from the fund's returns. The MER provides investors with an indication of the total expenses they can expect to pay for investing in a particular fund, and it directly impacts the fund's overall performance and investor returns.

Max Management Fee

In ETFs, "Max Management Fee" denotes the highest annual charge imposed by the ETF provider for managing the fund's assets. It encompasses costs such as portfolio management, administration, and operational expenses. Disclosed in the ETF's prospectus, this fee represents the upper limit of expenses investors may incur. Evaluating this fee is crucial for understanding the overall cost of ETF ownership and its impact on investment returns.

Max DSC Fee

Max DSC Fee refers to the "Maximum Deferred Sales Charge (DSC) Fee" associated with mutual funds. A DSC fee is a charge incurred when selling mutual fund shares within a specified period after purchase. The maximum DSC fee represents the highest percentage that investors may have to pay if they redeem their shares early. This fee often decreases over time until it eventually reaches zero. Understanding the maximum DSC fee is crucial for investors assessing the potential costs of selling mutual fund shares before the DSC schedule expires.

Max DSC Trailer

"Max DSC Trailer" refers to the maximum percentage of assets that a financial advisor or intermediary can receive for selling mutual fund shares with deferred sales charges (DSC) and providing ongoing services to investors. The DSC trailer fee compensates the advisor for their services, such as portfolio monitoring, financial planning, and client support, over the holding period of the investment. Unlike front-end loads, DSC fees are incurred when investors redeem their shares within a specified period after purchase, gradually declining over time until they reach zero.

Max FE Fee

Maximum Front-End Fee (MAX FE Fee) refers to the highest percentage charged as a front-end load when purchasing mutual fund shares. This fee is deducted from the initial investment amount and typically compensates financial advisors or salespersons for their services. Understanding the maximum front-end fee is important for investors evaluating the total cost of investing in a particular mutual fund.

Max FE Trailer

"Max FE Trailer" likely refers to the "Maximum Front-End Trailer Fee," which represents the highest percentage of assets that a financial advisor or intermediary can receive upfront when selling mutual fund shares and providing ongoing services to investors. This fee is deducted from the initial investment amount and is paid as compensation to the advisor for their services, including advice, portfolio monitoring, and client support.

N

Non-RSP Subsequent

Non-RSP Subsequents are additional contributions made to an investment outside of a Registered Retirement Savings Plan (RRSP) after the initial investment. This term indicates that the subsequent contributions are being made to a non-registered investment account, such as a taxable brokerage account. Unlike RRSPs, which offer tax advantages for retirement savings in Canada, non-registered accounts do not have the same tax benefits, but they provide flexibility in terms of contribution amounts and withdrawal options.

Non-RSP Initial

Non-RSP Initial refers to an initial investment made outside of a Registered Retirement Savings Plan (RRSP). In contrast to RRSP investments, which offer tax advantages for retirement savings in Canada, "Non-RSP Initial" indicates that the investment is not part of an RRSP account. It refers to the initial contribution made to a regular investment account, such as a taxable brokerage account or a non-registered investment account. These accounts do not offer the same tax benefits as RRSPs but provide flexibility in terms of contribution limits and withdrawal restrictions.

Number of Holdings

The "number of holdings" in a fund refers to the total count of individual securities or assets held within the fund's portfolio. In Mutual Funds (MF), the number of holdings can vary widely depending on the fund's investment strategy, objectives, and underlying index or benchmark. Some Funds may hold a relatively small number of securities, focusing on specific sectors or themes, while others may have hundreds or even thousands of holdings, aiming for broader diversification across various asset classes or markets. Cash & equivalents is considered as a position in a portfolio. Understanding the number of holdings in a MF can provide insights into its level of diversification and exposure to different segments of the market.

O

Objective

Objective refers to the fund's investment goal or purpose. It outlines the strategy that the ETF or mutual fund aims to follow in order to achieve its intended outcomes. Objectives can vary widely among investment products and may include goals such as seeking to replicate the performance of a specific index, providing exposure to a particular sector or asset class, generating income, or pursuing a combination of growth and income. Understanding the objective is crucial for investors to assess whether it aligns with their investment needs and preferences.

P

Previous Close / NAV

"Previous close" refers to the last price at which an ETF traded before the end of the preceding trading session, serving as a reference point for its recent market activity. For Mutual Funds, the previous net asset value (NAV) per share is displayed instead.

Prices

Prices refer to the market value at which shares of an ETF are bought and sold. They are essential for investors to gauge the current value of their holdings and make buying or selling decisions.

Price chart

A price chart is a graphical representation of the historical price movement of a financial asset over a specific period. Typically, the horizontal axis of the chart represents time, while the vertical axis represents the price of the asset. Price charts can take various forms, including line charts, bar charts, and candlestick charts, each providing different levels of detail and information. Investors and traders use price charts to analyze past price patterns, identify trends, support and resistance levels, and make informed decisions about buying, selling, or holding assets.

Pays Trailer

Trailer fees are ongoing commissions paid by the fund to financial advisors or intermediaries for providing ongoing advice or services to investors who hold the fund. Since ETFs are primarily passively managed and traded on stock exchanges, they generally do not have trailer fees. Instead, investors typically pay brokerage commissions when buying or selling ETF shares, but ongoing management fees (expense ratios) for ETFs are usually lower compared to mutual funds.

Period

"Period" typically refers to a specific timeframe or duration during which various activities or events occur. This could include the distribution period, which is the time when ETF shares are bought and sold on the stock exchange; the reporting period, which is the timeframe for preparing and releasing financial reports; or the performance period, which is the duration over which an ETF's investment performance is evaluated. The period can vary depending on the context and the specific aspect of the ETF being considered.

Payable Date

"Payable Date" is the date on which dividends or distributions are actually paid out to unitholders who are entitled to receive them. This date follows the ex-dividend date and typically occurs a few days to a few weeks after the ex-dividend date, depending on the ETF's distribution policy. On the payable date, shareholders who held ETF shares as of the record date receive their dividend or distribution payments either in cash or reinvested into additional shares of the ETF, depending on their preferences and the ETF's setup.

Performance

"Performance" gauges how well the fund has met its investment objectives over time. It reflects changes in the ETF's value, considering factors like price appreciation and dividends. Investors use metrics such as total return and annualized returns to assess performance. Comparing performance helps evaluate investment decisions and benchmark against peers.

PAC Allowed

"Pre-Authorized Contribution (PAC)" arrangement that is permitted or authorized for a particular investment account. A PAC allows individuals to make regular contributions to their investment accounts automatically. These contributions are deducted from their bank account at predetermined intervals, such as monthly or quarterly, and are then invested into the specified investment products.

PAC Initial

PAC Initial denotes the minimal intial amount needed to setup or establishment of a Pre-Authorized Contribution (PAC) arrangement within an investment account. This involves configuring the parameters for automatic, regular contributions to be deducted from a bank account and invested into specified products. It marks the commencement of a disciplined approach to building savings or investments over time through scheduled contributions.

PAC Subsequent

PAC Subsequent means the minimal subsequent contributions needed to allow a Pre-Authorized Contribution (PAC) arrangement within an investment account. This term indicates subsequent scheduled deductions from a bank account and investments into specified products after the initial setup.

Q

Quartile (1y/3y/5y)

Quartiles are commonly used in statistical analysis to divide a dataset into four parts, each containing an equal number of data points or observations. The first quartile (Q1) represents the 25th percentile, the second quartile (Q2) corresponds to the median or 50th percentile, the third quartile (Q3) denotes the 75th percentile, and the fourth quartile (Q4) represents the maximum value. Quartiles based on investment time period (1Y, 3Y, 5Y) return divide a set of investments into four equal parts based on their respective returns over the time period, with each quartile representing 25% of the ETFs ranked from lowest to highest returns. Quartiles are useful for analyzing the spread and distribution of data, identifying outliers, and comparing the performance of investments in mutual funds, ETFs or portfolios, relative to their peers.

R

Risk Rating

Risk rating is a measure used to assess the level of risk associated with a financial product. The value displayed is the one in the prospectus, which is traditionally derived from the investment product's volatility. Ratings range from low, low-to-medium, medium, medium-to-high, and high, helping investors evaluate the potential risks and rewards before making investment decisions.

Returns

Returns refer to the gains or losses that investors may realize from holding the ETF over a certain period of time. These returns can be measured in various ways, including price appreciation, dividends or interest income received, and capital gains distributions. Investors often analyze historical returns to assess the performance of an ETF and evaluate its potential for achieving their investment objectives. Past returns do not guarantee future performance.

Region

Region in the context of an ETF typically refers to a broader geographical area encompassing multiple countries. ETFs may be categorized based on regions such as North America, Europe, Asia-Pacific, or emerging markets. Investing in region-specific ETFs allows investors to gain exposure to the economic performance and market dynamics of particular areas of the world. These ETFs can be useful for diversifying portfolios across different regions or targeting specific regions for investment opportunities or risk management.

Rebalancing Frequency

Rebalancing frequency for ETFs refers to how often adjustments are made to maintain the desired asset allocation. This timing varies based on the ETF's strategy, with some rebalancing monthly, quarterly, or annually, while others do so based on specific triggers. Through buying or selling assets, ETFs realign with target allocations to ensure consistency with the intended investment strategy over time. This practice aims to manage risk and maintain the ETF's desired risk-return profile.

RRSP Eligible

Registered Retirement Savings Plan (RRSP) are tax-advantaged retirement accounts available to Canadian taxpayers, allowing them to contribute a portion of their income to save for retirement while enjoying tax benefits. Investments held within an RRSP, including eligible ETFs, grow tax-free until withdrawn, providing investors with the opportunity for long-term wealth accumulation. The eligibility of an ETF for RRSPs typically depends on factors such as the ETF's domicile, structure, and adherence to regulatory requirements set by the Canada Revenue Agency (CRA). Investors often seek RRSP-eligible investments to maximize their retirement savings while minimizing tax obligations.

RSP Subsequent

RSP Subsequent refers to additional contributions made to a Registered Retirement Savings Plan (RRSP) after the initial investment. In the context of RRSPs, individuals can make regular or irregular contributions beyond their initial investment to further build their retirement savings. These subsequent contributions can be made throughout the year and are subject to the annual contribution limits set by the Canadian government. They offer individuals the flexibility to increase their retirement savings over time within the tax-advantaged RRSP framework.

RSP Initial

RSP Initial refers to an "Registered Retirement Savings Plan (RRSP) Initial" investment. An RRSP is a Canadian government-approved retirement savings plan that allows individuals to save for retirement in a tax-efficient manner. The "Initial" could indicate the initial contribution made to an RRSP account. This contribution is often made at the beginning of the plan's establishment, marking the start of the individual's retirement savings journey within the RRSP framework.

R-squared (1y/3y/5y/10y)

In mutual funds, R-squared is a statistical measure that evaluates how closely a fund's returns are correlated with the returns of its benchmark index. It indicates the percentage of the fund's variations that can be explained by movements in the benchmark. A high R-squared value, close to 1, suggests that the fund's performance closely mirrors that of its benchmark, indicating strong correlation. Conversely, a low R-squared value, closer to 0, indicates that the fund's returns are less influenced by movements in the benchmark, suggesting greater independence or active management. R-squared helps investors assess the effectiveness of a mutual fund's investment strategy and its ability to deliver returns consistent with its benchmark.

S

Sectors

Sectors refer to different segments or industries of the economy that the fund invests in. These sectors can include technology, healthcare, financial services, consumer goods, and many others. ETFs may focus on specific sectors to provide targeted exposure to industries with growth potential or to allow investors to diversify their portfolios across various sectors. Sector-focused ETFs can offer investors a way to capitalize on specific economic trends or themes.

Short Selling Exposure

Short selling exposure in the context of an ETF refers to the fund's ability to engage in short selling activities as part of its investment strategy. Short selling involves selling securities that the ETF does not currently own, with the intention of buying them back at a lower price in the future to profit from price declines. ETFs with short selling exposure may use derivatives or other financial instruments to achieve short positions in the market. This capability allows the ETF to potentially profit from falling prices in the underlying assets or indices it tracks.

Shares, Shares Outstanding or Units Outstanding

Units outstanding refer to the total number of shares that have been created and issued by the fund. These units represent ownership in the ETF and can be bought and sold on the stock exchange just like individual stocks. The number of units outstanding can fluctuate based on investor demand and the creation or redemption of new units by the ETF issuer.

Sector Allocation

Sector allocation involves dividing an investment portfolio into different sectors or industries based on their performance expectations and risk profiles. By allocating assets across sectors such as technology, healthcare, energy, consumer goods, and financials, investors aim to diversify their portfolio and potentially enhance returns by capitalizing on sector-specific opportunities. Sector allocation strategies can vary depending on market conditions, economic outlook, and individual investor preferences, with the goal of achieving a balanced exposure to various sectors while managing risk.

Seller

A "seller" in ETF trading is someone offering shares of an ETF for sale on the market. Sellers place sell orders through brokerages, indicating the quantity of ETF shares they wish to sell and at what price. When a seller's order matches a buyer's order, a transaction occurs, and the seller relinquishes ownership of the ETF shares in exchange for payment.

Strategy

In ETF investing, "strategy" refers to the approach or plan investors use to achieve their investment goals using ETFs. Strategies can vary widely and may include long-term buy-and-hold, asset allocation, sector rotation, tactical asset allocation, and more. Investors develop strategies based on factors like risk tolerance, time horizon, market outlook, and individual financial objectives, aiming to optimize returns while managing risk effectively.

Short/Med/Long

Short, "Med," and "Long" typically refer to different durations or time horizons in the context of investments. "Short" implies a brief duration, often associated with short-term investments or strategies. "Med" signifies a medium-term duration, falling between short-term and long-term. "Long" denotes a lengthy duration, typically associated with long-term investments or strategies aimed at achieving goals over an extended period. These terms help investors categorize their investment objectives and timeframes, guiding their decision-making processes.

Sales Status

The sales status refers to the current state of the mutual fund, specifically whether it accepts contributions and withdrawals at any time. A closed fund does not accept additional contributions and does not allow sales at any time, unlike an open fund.

Sharpe Ratio (1y/3y/5y)

The Sharpe Ratio is calculated by first determining the average monthly excess return of the investment (return above the risk-free rate) over the investment period(3Y, 5Y). Then, the standard deviation of these excess monthly returns is computed. Annualize both excess return and standard deviation. Finally, the Sharpe Ratio is obtained by dividing the annualized average excess return by the annualized standard deviation of excess returns. This metric provides excess return earned per unit risk taken on an annual basis therefore, a higher Sharpe Ratio indicates better risk-adjusted performance over the specified timeframe.

Sold In

Sold In indicates the regions within a country where the security's sales transactions can take place.

Standard Deviation (1y/3y/5y)

Standard deviation of monthly returns is a statistical measure that evaluates the variability or dispersion in the monthly returns of an investment over a required investment period (e.g. 3Y, 5Y). It provides insight into the consistency and stability of the investment's performance over an extended timeframe. A higher standard deviation suggests greater volatility, indicating more significant fluctuations in returns around their average value over the calculation period (e.g. 3Y, 5Y). Conversely, a lower standard deviation implies more consistent returns with less deviation from the mean, reflecting a comparatively stable investment performance over the analyzed duration.

Stock Replacement

Stock replacement typically refer to investment funds, such as exchange-traded funds (ETFs), that hold amounts of a particular stock within their portfolio. Stock replacement is a tool that allows investors to find ETFs that invest in particular stocks

SWP Allowed

"Systematic Withdrawal Plan (SWP)" is permitted for a particular investment account. An SWP allows investors to receive regular withdrawals or distributions from their investment holdings in predetermined amounts and intervals. These withdrawals can serve as a source of income for the investor, providing a systematic way to access their investment funds over time. When an investment account is labeled as "SWP Allowed," it means that investors have the option to set up an SWP arrangement to receive regular distributions from their investments according to their specified preferences.

SWP Min Balance

"SWP Min Balance" refers to the initial minimum balance requirement that must be maintained in an investment account in order to be eligible for a Systematic Withdrawal Plan (SWP). This condition ensures that the account maintains a sufficient level of assets to support the scheduled withdrawals without depleting the account prematurely. Investors need to adhere to this minimum balance requirement to continue receiving regular distributions through the SWP arrangement.

SWP Min Withdrawal

"SWP Min Withdrawal" signifies the minimum amount that can be withdrawn from an investment account through a Systematic Withdrawal Plan (SWP) in a single transaction. This condition sets a threshold for the smallest allowable withdrawal, ensuring that withdrawals are made in amounts that are feasible and practical for the investor. Investors must adhere to this minimum withdrawal requirement when scheduling their SWP transactions.

T

Tax Efficiency

Tax efficiency is the percentage of after-tax return over pretax return. It estimates after-tax returns, accounting for the different tax rates for interest, dividends, and capital gains. This is an estimate that depends on fund companies providing an accurate breakdown of their distributions.

Target outcome

Target outcome refers to a financial objective or goal that an ETF aims to achieve through their investment strategy for the investors. This could involve a specific desired result, such as generating a certain level of income, preserving capital, achieving capital growth, or managing risk within a defined framework. ETF managers may pursue various target outcomes based on the financial objectives, risk tolerance, investment horizon, and market conditions. Implementing investment strategies aligned with target outcomes helps ETF managers clarify their objectives and tailor the portfolio allocations accordingly to meet the specified financial goals.

Trades

Trades refer to buying and selling shares of the ETF on the stock exchange. The last 50 trades of the day are displayed. When an investor purchases shares of an ETF, they are essentially buying a proportional interest in the underlying assets held by the ETF. Similarly, when they sell shares of an ETF, they are selling their ownership in those assets. They are limited to 50 trades.

Trailer Fee

A "trailer fee" is a recurring fee paid by mutual fund companies to financial advisors or intermediaries who sell their funds and provide ongoing services to investors. It is typically a percentage of the assets invested in the fund and is paid annually as long as the investor holds the fund. Trailer fees compensate advisors for the ongoing advice, service, and support they provide to investors, including portfolio monitoring, financial planning, and client education. However, critics argue that trailer fees can create conflicts of interest and may influence advisor recommendations.

Type

Type ETF categorizes exchange-traded funds based on their underlying assets or investment strategies. Categories include equity ETFs, which invest in stocks, fixed-income ETFs, focusing on bonds, commodity ETFs, tracking commodities like gold or oil, and sector ETFs, targeting specific industries. Understanding these types aids investors in selecting ETFs aligned with their investment objectives and risk tolerance.

Top 10 holdings

The top 10 constituents of a Mutual Fund represent the ten largest holdings within the Fund's portfolio by market value. Cash can also be one of the top 10 holding in a MF. These holdings typically have a significant influence on the overall performance of the MF due to their size and weightage. Investors often pay close attention to the top 10 constituents to understand the MF's exposure to specific companies, sectors, or asset classes. Analyzing these constituents can provide insights into the ETF's diversification, concentration risk, and alignment with investment objectives.

Treynor (1y/3y/5y/10y)

The Treynor Ratio is a measure of risk-adjusted return that evaluates the performance of an investment relative to its systematic risk, or beta. It's calculated by dividing the excess return of the investment (above the risk-free rate) by its beta. The ratio assesses how much excess return an investment generates per unit of systematic risk. A higher Treynor Ratio indicates better risk-adjusted performance, suggesting that the investment has provided higher returns for the level of risk taken.

TTM Distribution Yield

TTM distribution yield reflects the annualized payout from an investment over the past twelve months as a percentage of its current price or NAV price. It's calculated by summing up all distributions made by the investment (e.g., dividends, interest payments) over the trailing twelve months and dividing by the current price, then multiplied by 100. This metric helps investors gauge the income generated by the investment relative to its current market value.

V

Vol / Avg

Vol / Avg refers to the volume traded compared to the average volume of an ETF over 30 days. It's a measure of liquidity, indicating the level of trading activity in the ETF relative to its typical trading volume. A higher Vol / Avg ratio may suggest increased investor interest or volatility in the ETF, while a lower ratio may indicate lower trading activity or liquidity. Investors often consider volume metrics when assessing the ease of buying or selling shares in an ETF.

Volume

Volume in ETF trading refers to the total number of shares bought and sold within a specific timeframe. High volume indicates strong investor interest and liquidity, making it easier to execute trades. Conversely, low volume may suggest less market activity and potentially wider bid-ask spreads. Monitoring volume can help investors gauge market sentiment and identify trading opportunities.

VWAP

VWAP stands for Volume-Weighted Average Price. It's a trading benchmark used to measure the average price an ETF trades at throughout the day, based on both volume and price. VWAP is calculated by dividing the total value of all trades by the total volume traded over a specific period, typically one trading day. It's commonly used by institutional investors to assess their execution performance relative to the market average.

Value/Blend/Growth

Value, "Blend," and "Growth" categorize mutual funds or ETFs based on their investment characteristics. "Value" indicates undervalued stocks, "Blend" reflects a mix of growth and value, and "Growth" suggests stocks with strong growth potential. These classifications help investors align their portfolios with their risk tolerance and investment goals.

W

Worst Month

The "worst month" typically refers to the month in which an investment or asset class experienced the lowest percentage return within a specific time frame. To identify the worst month, you would analyze historical performance data over the desired period and determine which month had the lowest return. This could involve looking at the monthly returns of stocks, mutual funds, ETFs, or other financial instruments. The worst month could vary depending on the investment's volatility, market conditions.

Worst return(%)

The worst 1-month return in the last 5 years is the single lowest percentage return that occurred within a single month over the past 5 years.

Y

YTM

Yield to maturity (YTM) is the total return anticipated on a bond if it's held until its maturity date. It's a measure of the annualized rate of return an investor can expect to earn from a bond, considering its current market price, coupon payments, and time to maturity. YTM takes into account both the bond's interest payments and any capital gains or losses upon maturity, assuming all coupon payments are reinvested at the same rate. It's a crucial metric for investors assessing the attractiveness of bonds, as it reflects the bond's true yield after factoring in its price and time to maturity.

#

52-Week Range

The 52-week range of an ETF refers to the highest and lowest price at which the ETF has traded over the past 52 weeks (one year). The 52-week range provides investors with an idea of the volatility and performance of the ETF over a longer time frame. The high and low prices within the 52-week range can be used as reference points to gauge how the ETF is performing compared to its past trading history.