Mutual funds
ETFs
Alternative investments
Comptes gérés séparément (SMA)
Types de placements
{{r.fundCode}} {{r.fundName}} {{r.series}} {{r.assetClass}}
  • Afficher tous les résultats
  • Afficher les résultats de Produits
  • Afficher les résultats de Perspectives

Découvrez la nouvelle expérience numérique de RBC iShares.

Vous y trouverez tout ce qui concerne les FNB : stratégies de placement, produits, perspectives et plus encore.

.hero-subtitle{ width: 80%; } .hero-energy-lines { width: 70%; right: -10; bottom: -15; } @media (max-width: 575.98px) { .hero-energy-lines { background-size: 200% auto; width: 100%; } }

What is a Core ETF?

Hail Yang

Director, iShares Product Consulting for BlackRock Canada

At iShares, we define Core ETFs as those exchange traded funds tracking broadly diversified, market cap weighted, widely recognized indexes such as the S&P 500, the S&P/TSX composite, or the FTSE Canada Universe Bond Index as examples. Core ETFs are often described as the foundational building blocks of portfolio construction, offering broad and comprehensive coverage to all the major asset classes and at a low cost.


What are the benefits of Core ETFs from RBC iShares?

Hail Yang

From diversification to liquidity to transparency, Core ETFs offer a range of benefits to investors. But I wanted to key in on three important benefits. The first is performance. Many investors assume that funds designed to track the indexes that I just described can only deliver at best, average performance within their peer fund group categories. The historical and empirical data would actually paint a different picture altogether. When measured over longer time periods, say five years or longer, across many fund categories and across most time periods,

Core ETFs actually deliver above average performance, first or second quartile within their peer groups. The second key benefit is low costs. Low cost has become synonymous with Core ETFs. And just to give you an illustration of how low cost they can be, we offer an iShares Core ETFs at a five basis points management fee. That would be $0.05 per year for every $100 invested.

Great value and even greater value when you consider the point I just made about the historical performance that they have delivered. And then the final benefit is what I describe as familiarity. Core ETFs are designed to track some of the most well-established benchmarks within their asset classes. And the benefit to an advisor, for example, around this is time savings.

The simplicity of describing to your client that the fund you own on their behalf is designed to track a benchmark that they are probably already familiar with through the press. It saves you time from explaining investments to your clients, and allows you to use that time on higher value add activities, such as solving their most complex financial needs.

How can investors incorporate Core ETFs into an investment portfolio?

Hail Yang

So research has shown that asset allocation is the primary driver of return variation in the context of all diversified portfolios. And so the primary use case of Core ETFs has been to express very efficiently asset allocations and to capture all the broad market sources of return across all the major asset classes.

But I'd like to illustrate three other use cases that we've observed around Core ETFs. The first is as a liquidity sleeve. Many investors like to manage single stock portfolios, typically of U.S. and Canadian stocks. And that's a high value add activity that many investors pursue. The challenge is that it's also very time consuming rebalancing the portfolio and managing inflows and outflows of cash.

We've observed lots and lots of investors now use Core ETFs alongside single stock portfolios to basically consolidate all that inflow and outflow of cash into one line item and to simplify their portfolio management as a result. Second use case, Core ETFs are some of the largest, most liquid ETFs in the industry. And that makes them ideal for tactical adjustments to the portfolio, whether that's rebalancing between stocks and bonds or vice versa, or maybe sort of, getting immediate diversified access to international equities.

Core ETFs are ideal for that use case. And then the final, use case that I'll just highlight is fee budgeting. With the underlying product fees of portfolios coming under increased scrutiny from investors, managing that fee budget is becoming increasingly important. And so, Core ETFs play a central role in reducing the overall cost of the portfolio.

But I think, just as importantly, they allow you as an investor to sort of more deliberately decide where you're going to spend the fee budget. And typically that's going to be in managers and active strategies where you have higher conviction.