ETFs Explained: What They Really Cost (Canada)

ETFs (exchange-traded funds) explained for Canadians: what an ETF holds, why it has two prices (the market price and the NAV), what it really costs (commissions, the bid-ask spread, the MER and the TER), how all-in-one ETFs rebalance, and how to read the ETF Facts document every ETF listed in Canada has to publish. In this video: Index vs active ETFs, and the two prices: market price, NAV and the bid-ask spread, with a worked $10,000 purchase What an ETF costs: MER + TER = "ETF expenses", shown in dollars per $1,000, and what a gap of under one percentage point adds up to over 25 years All-in-one (asset allocation) ETFs, the ETF Facts sections, what CIPF does and doesn't cover, and leveraged, inverse and narrow ETFs ⏱ Chapters 0:00 ETFs explained: what they cost 0:39 What an ETF is 1:27 Index vs active ETFs 2:33 Two prices: market price, NAV and the bid-ask spread 4:16 What an ETF costs: MER, TER and ETF expenses 6:05 All-in-one (asset allocation) ETFs 7:12 How to read ETF Facts, and what CIPF covers 8:53 Leveraged, inverse and narrow ETFs, and tax 9:54 Our take and three takeaways 📚 Sources (rules as of October 2026) CSA, Form 41-101F4, Information Required in an ETF Facts Document (OSC unofficial consolidation, current to March 3, 2025): https://www.osc.ca/en/securities-law/... Canadian Securities Administrators, news release on ETF Facts, December 8, 2016: https://nssc.novascotia.ca/sites/defa... OSC GetSmarterAboutMoney, How exchange-traded funds (ETFs) work: https://getsmarteraboutmoney.ca/learn... OSC GetSmarterAboutMoney, What are the different types of ETFs?: https://getsmarteraboutmoney.ca/learn... OSC GetSmarterAboutMoney, ETF Facts: https://www.getsmarteraboutmoney.ca/t... Canadian Investor Protection Fund (CIPF), Frequently asked questions: https://www.cipf.ca/faq No fund, ETF provider or broker is named or recommended. Examples use a fictional person and a fictional ETF with made-up prices. Leila: 29, Alberta, earns $70,000, investing $10,000. The 25-year example uses an illustrative 6% a year before expenses; it is not a forecast, and the result is rounded because exact cents depend on how expenses are applied. ⚠️ Disclaimer: This video is for general educational purposes only and is not financial, tax, investment or legal advice. Rules and figures change. Confirm current details with your provincial securities regulator, in a fund's ETF Facts and prospectus, or with a qualified professional before making decisions. AI tools were used to produce narration and some visuals. All research and analysis is our own. #ETF #InvestingCanada #PersonalFinanceCanada