What is an index ETF?

An index ETF is an exchange-traded fund that tracks a market index, such as the S&P 500 in the U.S. or the S&P/TSX 60 in Canada. For example, if you buy an ETF that tracks the U.S. S&P 500 index, you own a small portion of the 500 largest U.S. companies.

What's an all-in-one ETF?

An all-in-one ETF, also known as an asset allocation ETF, is an exchange-traded fund composed of several ETFs. They generally comprise a mix of equities, bonds and cash, depending on the risk profile chosen. These ETFs offer a number of advantages, including diversification, automatic rebalancing, low management fees and a simplified investment strategy.

What's the best ETF for a TFSA?

The best ETF for a TFSA depends on a number of factors, such as your financial goals, investment horizon and risk tolerance. If you're saving in a TFSA for a travel project, you may want to consider a conservative or cautious asset allocation ETF, since capital protection is essential. Conversely, if you're investing in a TFSA with a long-term horizon, you may want to select a more aggressive asset allocation ETF.

What's the best ETF for an RRSP?

The best ETF for an RRSP depends on a number of factors, such as your investment horizon and risk tolerance. If you're on the cusp of retirement, a conservative asset allocation ETF or a monthly income ETF could be a good solution. Conversely, if you have one or more decades before retirement, you may want to consider growth or aggressive asset allocation ETFs.