The 30th Anniversary of a Great Canadian Invention: The Exchange Traded Fund (ETF)

SYNOPSIS

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The sentence “There’s a sucker born every minute” is often attributed to the circus tycoon P. T. Barnum, but there’s apparently little to no evidence that he was the source. All the same, the expression (or some variation of it) has been used by scam artists for probably over a century. And no scam artists use it more than mutual fund sales people! They extract horrific fees from their “customers” and virtually never deliver returns-on-investment that exceed the market averages. In fact, considerably less. Like used car salesmen, they know that they’re deliberately feeding the customer lies, knowing full well that the customer will be buying a lemon. And yet the general public falls victim to mutual funds as a way to invest in equities almost as much now as ever before. There is (at least) one sucker born every minute, and with mutual funds possibly 10,000 of them. ETFs are a bridge out of the mutual fund trap, but scam artists (i.e. your bank or financial advisor) will not make anywhere near the profits from you as they will with mutual funds. We know that you know better, but please have this discussion with friends who aren’t as enlightened as you are. They’ll appreciate it in the long term.

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PTP… The benchmark APARs dropped 10% and 18% respectively. Meanwhile, we our PTP APAR held pretty steady… up 3 points from last week’s reading. We were active with our other accounts, so left the PTP to fend for itself over the past trading week.

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PTA Perspective… The 30th Anniversary of a Great Canadian Invention: The Exchange Traded Fund (ETF)
Yes, Canada invented the ETF, as it did the Java programming language, basketball, the paint roller, the garbage bag, peanut butter and the Wonderbra to name just a few! Lots of data and discussion on ETFs and their history and prospects in this week’s edition of TrendWatch Weekly.