The growth in exchange traded funds (ETFs) in recent years makes sense, given the credence many of the world's greatest investors have given to these funds relative to traditional mutual funds and other actively managed hedge funds and the sort, primarily due to the cost advantage these diversified options provide investors over the long haul.
In Canada, one of the best options for passive investors looking to put their money to work for very long periods of time and "forget about it" is the Horizons S&P/TSX 60 ETF (TSX:HXT), an ETF which holds the 60 largest companies on the TSX, providing investors with a significant amount of diversification at fees which cannot be beat.
This ETF currently charges only three basis points to investors (that's a measly 0.03%) for access to a portfolio of the 60 largest companies in Canada - a truly incredible opportunity for investors to participate in financial markets at nearly zero cost.
Reducing costs to be nearly non-existent has certainly served both ETF companies and Canadian investors well. Finding deals like this (in terms of fees) can help investors who are looking to invest significant amounts of money for long periods of time with maximizing returns while simultaneously minimizing headaches, no small feat in the world of investing today.
I would recommend investors supplement an ETF like this one with specific stocks one believes will outperform, in an attempt to beat the market, should one be inclined to do so (of course, putting all of one's eggs in this basket will result in returns which will exactly mimic the broader indices).
Invest wisely, my friends.
