Exchange Traded Funds

1. Exchange Traded Funds

2. Exchange Traded Funds (ETF) • Trade just like stocks • Quick and easy to invest in • Investor has the choice of which asset class to invest in • Key differences between ETFs and Mutual Funds are: • The hours ETFs are traded • The price changes of ETFs

3. Exchange Traded Funds (con’t) • ETFs are used to reduce firm specific risk • ETFs state legal ownership to stocks • An ETF officially begins with a market maker • These middlemen assemble the appropriate basket of stocks • The fund manager takes a small fee of the funds annual assets

4. S&P 60 Index Fund - XIU • Comprised of 60 largest and most liquid securities on TSX. • Suited for individual investor due to the smaller contract size • Barclays Canada receives a fee for acting as a trustee

5. S&P 60 Index Fund (con’t) • XIU options allow speculators a better opportunity with a limited and known amount of risk.

6. S&P Capped Composite Index Fund - XIC • Long-term capital growth • Comprised of largest and most liquid securities on TSX and other ishares funds • S & P uses industrial classifications and guidelines for selecting securities • 10% cap on issuers • Susceptible to same risks as Canadian Equity Fund Index

7. S&P Capped Composite Index Fund (con’t) • Replicates underlying index • Advantages and disadvantages to this

8. S&P Capped Income Trust Index Fund - XTR • Comprised of securities of income trust issuers • Securities are selected by S&P • Replicates the performance of the S&P/TSX Capped Income Trust Index • Dividend and capital gains distribution • Annual trustee fee is 0.55% • Governed by a trust agreement

9. S&P Capped Income Trust Index Fund (con’t) • Seek to minimize risk • Some risks involved • Sector risk • Fluctuation

10. Thank you Any Question?