Investing does not have to be difficult. Currently, the sheer number of investing possibilities can certainly provide a great deal of angst for the average investor. Picking and choosing stocks, or worse, feeling stupid or inferior for not knowing which the “perfect” stocks are to own, can defer many investors from getting started. The worst possible outcome, in my view.
I am going to give new investors, or those looking for an investing vehicle that can help simplify a relatively complex process who have been investing for some time, a means of doing so. Index-tracking Exchange Trading Funds (ETFs) have become my best friend recently, as a tool to help simplify investing choices. There are a number of great ETFs out there, but for those looking to garner TSX exposure and are based in Canada, I’ve found the iShares Composite S&D/TSX Index ETF (TSX:XIC) is a great way to go.
This ETF provides investors with broad exposure to the entire TSX exchange, providing heightened diversification for Canadian investors looking for diversification with their domestic holdings. Of course, the Canadian TSX index is, in itself, heavily weighted to energy, financials, and resource stocks, so I would encourage investors seeking true diversification to explore other global ETFs that track either the entire world, or are ex-Canada, to balance some of the risk that would come from holding equities from one country only.
Invest wisely, my friends.
