Trevor Cummings, CIMA

Transcription

1 Trevor Cummings, CIMA Vice President, Business Development ishares ETFs, BlackRock Canada Trevor s primary focus is on the investment advisory community in Toronto and Eastern Ontario. Working in the industry since 1998, Trevor joined ishares in Getting Started with ETFs In partnership with

2 What is an ETF? Like a stock Trading flexibility intraday on the exchange Like an index fund Majority are constructed to track benchmark indexes Low expense ratios Low turnover Earn income just like a stock or bond Most ETFs pay out the distributions earned from the underlying holdings. Low cost and efficient way to access various income oriented asset classes. 2

3 What is an ETF? Two Great Investment Ideas Brought Together Stock Like a Mutual Fund Tradable during the day ETFs Diversified Diversified funds that trade like stocks 3

4 Realities of Investing What we can t control Economic cycles and moves in global stock markets What we can control Product selection cost, tax efficiency Asset allocation- i.e. Where is your money? 4

5 ETFs Come In All Shapes, Sizes and Asset Classes Commodities Equities Sectors Fixed Income Global 5

6 Diversification illustrated: single security risk Risk / Return: S&P/TSX Capped Consumer Staples Index vs. current constituents 10 years ending September % 20.0% 15.0% Annualized Total Return 10.0% 5.0% 0.0% INDEX -5.0% -10.0% -15.0% 4.0% 20.0% 100.0% Annualized Risk (Logarithmic Scale) Data as at Sept illustration only Source: Standard and Poors, BlackRock Asset Management Canada Limited and its affiliates (together BlackRock ), Bloomberg LP. 6

7 Short- and Long-Term Strategies Build a diversified core portfolio International and Emerging Market Investing Active manager complement or substitute Fixed Income solutions Tactical or opportunistic views Alternative exposures Image: digitalart / FreeDigitalPhotos.net. 7

8 Who Uses ETFs Individual Investors Financial Advisors ETFs Institutions

9 Trading Volumes ETFs represent 25% of all daily trades in the United States* and 10% in Canada ishares XIU is the largest and most liquid ETF in Canada: One of the top 10 most actively traded securities Trading $197M a day Trading in line with familiar names like CIBC, Suncore ETFs trading volumes are as significant as many of the most popular securities: Apple (APL) of $6.4B Exxon (XON) of $1.1B* * BlackRock- as of Sept 30 th, 2013, USD. ** Bloomberg as of January 2013

10 The Innovations of ETFs ETFs have brought a number of innovations to investors: Transparency Cost Diversification Tax Efficiency Liquidity know what you hold at any time low cost investment vehicles a broad range of offerings structured to be tax efficient buy/sell regardless of volume In a world where we are all held to a higher standard of transparency and liquidity, ETFs provide both. 10

11 Help Manage Total Performance with ETFs Diversification Return Risk Transparency Performance vs. active funds Express a view Costs Spend Less Save More 11

12 Final Thoughts ETFs can be used as: Precise portfolio building blocks A cost management strategy ETFs exist for virtually any asset class ETFs are highly flexible and can be used by investors of all sizes, types, and time horizons

13 ishares Funds are managed by BlackRock Asset Management Canada Limited. Commissions, management fees and expenses all may be associated with investing in ishares Funds. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. TSX is a registered trademark of TSX Inc. and S&P is a registered trademark, and S&P Latin America 40 Index is a trademark of The McGraw-Hill Companies, Inc. XCS, XEG, XEI, XFN, XIC, XIT, XIU, XMA, XMD, XRE, XST, XUT, XVX, XLA, XBM, XGD, XHC, XSP, XPF and XVX are permitted to use the S&P marks, and, as applicable, the TSX marks, pursuant to a license agreement between Standard & Poor s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., and BlackRock Institutional Trust Company, N.A., an affiliate of BlackRock Asset Management Canada Limited, which has sublicensed the use of those trademarks to BlackRock Asset Management Canada Limited, which has further sublicensed their use to the applicable funds. XCS, XEG, XEI, XFN, XIC, XIT, XIU, XMA, XMD, XRE, XST, XUT, XVX, XLA, XBM, XGD, XHC, XSP, XPF and XVX are not sponsored, endorsed, sold or promoted by S&P, The McGraw-Hill Companies, Inc. or the TSX Inc. and they make no representation, condition or warranty regarding the advisability of investing in units of the funds. DEX Universe Bond Index, DEX All Corporate Bond Index, DEX All Government Bond Index, DEX HYBrid Bond IndexTM, DEX Long Term Bond Index, DEX Real Return Bond Index, and DEX Short Term Bond Index are trademarks of TSX Inc. and have been licensed for use for certain purposes to BlackRock Asset Management Canada Limited by PC-Bond, a business unit of TSX Inc. XBB, XCB, XGB, XHB, XLB, XRB and XSB are not sponsored, endorsed, sold or promoted by PC-Bond, TSX Inc., its affiliates or third party data providers and they make no representation, warranty, or condition regarding the advisability of investing in the funds. DEX 1-5 Year Laddered Government Bond Index, DEX 1-5 Year Laddered Corporate Bond Index, DEX 1-10 Year Laddered Government Bond Index, DEX 1-5 Year Laddered Government Bond Index, DEX Convertible Bond Index and DLUX Capped Bond Index are trademarks of TSX Inc. These marks have been sublicensed for use for certain purposes to BlackRock Investments Canada Inc. by PC-Bond. The ishares 1-5 Year Laddered Government Bond Index Fund, ishares 1-5 Year Laddered Corporate Bond Index Fund, ishares 1-10 Year Laddered Government Bond Index Fund, ishares 1-10 Year Laddered Corporate Bond Index Fund, ishares Advantaged Convertible Bond Index Fund and ishares Advantaged Canadian Bond Index Fund are not sponsored, endorsed, sold or promoted by TSX Inc., PC-Bond, its affiliates (including TSX Group Inc.) or third party data suppliers. TSX Inc., PC-Bond, its affiliates and third party data suppliers make to representation, warranty, or condition regarding the advisability of investing in these funds. Standard & Poor s and S&P are registered trademarks of The McGraw-Hill Companies, Inc., and TSX is a trademark of Toronto Stock Exchange. These trademarks have been licensed for use by BlackRock Investments Canada Inc. The ishares S&P/TSX Global Mining Index Fund and ishares S&P/TSX Canadian Preferred Share Index Fund are not sponsored, endorsed, sold or promoted by S&P or Toronto Stock Exchange, and S&P and Toronto Stock Exchange make no representation, warranty or condition regarding the advisability of investing in the ishares S&P/TSX Global Mining Index Fund and ishares S&P/TSX Canadian Preferred Share Index Fund BlackRock Asset Management Canada Limited. All rights reserved. ishares is a registered trade-mark of BlackRock Institutional Trust Company, N.A. Used under license. BlackRock is a registered trade-mark of BlackRock, Inc. All other trademarks, service marks or registered trademarks are the property of their respective owners. isc