According to a special report issued today by the BMO Wealth Institute, more investors are considering exchange traded funds (ETFs) when determining what investments to include in a retirement savings portfolio.
While the report notes that the demand for ETFs is growing worldwide, they remain one of the least understood investment vehicles among Canadians:
- Only 19 percent of Canadian investors claim to be knowledgeable about ETFs compared to traditional investments, such as guaranteed investment certificates (GICs) (58 percent) and mutual funds (55 percent).
- However, once told about the benefits of ETFs, 60 percent report they would add them to their portfolios.
“Exchange traded funds have only been around for the last twenty years so it’s understandable that Canadians are still in the process of familiarizing themselves with them,” said Chris Buttigieg, Senior Manager, Wealth Planning Strategy, BMO Financial Group. “Due to their many benefits, ETFs are a great fit not only for a portfolio in general, but specifically for accumulating wealth for retirement.”