FAQ

You asked. We answered. Dive into the most frequently asked questions about Questrade Smart ETFs.

An exchange traded fund (ETF), like a mutual fund, is a basket of pooled investments designed to replicate a specific index or strategy.The difference is that an ETF trades during the day on a stock exchange similar to a stock but a mutual fund can only be traded at the end of the trading day. 

We offer both passive and actively managed ETFs to give our investors access to under-represented areas of the market. Questrade Wealth Management Inc. was the first ETF provider to launch U.S. midcaps in Canada. 

Our commitment to innovation and value have led us to partner with some of the most reputable firms in the investment industry who share these same core principles. They are leaders in what they do, and together with Questrade, bring ideas beyond basic index investing in the world of ETFs.

FTSE Russell

Russell Indexes provides tools to help investors build, track, and manage investment portfolios. For 30 years, Russell has strived to push the boundaries of index design, offering a wide array of benchmarks, strategic and innovative indexes, built for investability. Covering 80 markets worldwide, Russell indexes covers 98% of investable global equity, making them a more precise picture of the overall market. Since becoming the U.S. institutional industry leader in terms of market share in 2003, Russell captures 73%1 of the market share with $5.2* trillion in benchmarked assets for all U.S. institutional equity products reporting a benchmark. Russell’s series of U.S. and global equity indexes reflect distinct investment universes in regards to asset class, geographic region, capitalization and style – with no gaps or overlaps.

* As of December 31, 2013
1 Compiled by Russell Product and Marketing Research using data from Morningstar Direct database as of December 31, 2013.

Global Investment Management - Jarislowsky Fraser

Jarislowsky Fraser is one of Canada's leading independent investment firms, with core strengths —a philosophy of fundamental, high-quality investing and rigorous in-house research— being widely recognized and valued. Founded in 1955 as a research boutique, Jarislowsky Fraser today manages the portfolios of pension funds, foundations and endowments, corporations and individuals in Canada, the United States and internationally — representing more than $35 billion in assets under management. Their mission is to grow capital in a low risk manner by adding value through rigorous fundamental research, an integrated team-based approach and a disciplined investment process. Jarislowsky Fraser’s investment philosophy and process are built on a foundation of time-tested conservative principles and 60 years of fundamental research. Their team of more than 45 investment professionals applies proven global investment management expertise to meet the needs of individual and institutional investors worldwide.

One Capital Management

Headquartered in California, USA, our cross-border partner One Capital Management provides both Canadian and U.S. investors with investment and wealth management expertise. They begin with the belief that portfolio structure is the single most important element to creating a successful investment portfolio, blending active management of global large cap equities with exchange traded funds (ETFs) to construct multi-asset class portfolios. Utilizing ETFs allows access less efficient capital markets and asset classes, thereby enhancing the return of and reducing the risk of the portfolio (expressed in terms of return volatility). It is their use of low correlation asset classes, portfolio composition, and systematically rebalancing that generates enhanced returns while reducing risk. Tax management along the way assures that investors keep most of what they earn.

Questrade Smart ETFs trade on the Toronto Stock Exchange (TSX) and can be  bought and sold throughout the trading day in either your self-directed or full-service brokerage accounts.

Passive

Our passive Smart ETFs are designed to replicate the returns of a broad index or commodity such as the S&P 500, TSX 60, oil, or gold. The fund manager’s goal is to have the fund track the index as closely as possible, but not to use any proprietary investment strategy.

Active

Our actively managed Smart ETFs rely on the portfolio manager’s expertise and investment strategy to seek returns above the market indices.

Smart Beta

Our smart beta ETFs are the middle ground between active and passive. Smart beta managers design or use an existing index that selects holdings with a rules-based approach. The ETF is constructed to track the rules-based index and be rebalanced periodically.

ETF liquidity is an aggregate of all of the trading volume in the securities it holds.

ETFs are open ended. New units can be created (or redeemed) in the primary market. If there is buying demand from investors, the provider of the fund (through a market maker) can create new units by going to market and purchasing more of the underlying securities in the fund. Conversely if investors are selling their units, the provider can sell the underlying securities in the fund to redeem those units.