Strategies | Vanguard Canada

Module 4: ETF Strategies

The different ways investors can use ETFs:

ETFs are cost-effective tools that can help you diversify a portfolio and execute a range of strategic and tactical options.

Every ETF strategy comes with its own purpose and risk profile. When considering different strategies, investors should be realistic about their own temperament and tolerance for risk. Some of the ETF strategies described here entail taking concentrated investment positions, so it's important to weigh the extra risks involved against the potential rewards.

Core allocation

Gain fast, precise and cost-effective access to a broad variety of asset and sub-asset classes to build a strategic core portfolio.

Core allocation

Portfolio completion

Fill gaps in a portfolio to broaden diversification, minimize benchmark risk or add exposure to specific market segments or factors.

Portfolio completion

Active-passive combinations

Combine index ETFs and low-cost actively managed funds for diversification and the opportunity for outperformance.

Active-passive combinations

Liquidity management

Invest short term in the market with ETFs while refining a longer-term investment view.

Liquidity management

Asset location

Allocate assets among taxable and tax-advantaged accounts to help maximize after-tax returns.

Asset location

Tax optimization

Harvest losses to potentially improve tax efficiency, while maintaining exposure to a given market.

Tax optimization

Rebalancing

Manage portfolio risk by rebalancing back to a target strategic asset allocation.

Rebalancing

Tactical adjustments

Overweight or underweight certain asset classes, regions or countries.

Tactical adjustments

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Module 1

Learn about ETF strategies

Module 4: ETF Strategies

The different ways investors can use ETFs:

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Basics

Management

Trading