Understanding ETFs: A Smarter Way to Build and Manage Your Investment Portfolio

Exchange-traded funds, commonly known as ETFs, have become an increasingly popular investment option for Canadians. As Scrivens expands its investment services to include ETF trading, we want to help clients understand what ETFs are, how they work, and how they can support long-term financial goals.

Whether you are saving for retirement, building wealth, or looking to diversify an existing portfolio, ETFs can offer flexibility, transparency, and cost efficiency when used as part of a thoughtful investment strategy.

What Is an ETF?

An ETF is a type of investment fund that holds a collection of assets, such as stocks, bonds, or other securities. Instead of buying individual investments one by one, an ETF allows you to gain exposure to an entire market, sector, or asset class through a single investment.

ETFs are similar to mutual funds in that they offer diversification, but they differ in how they are bought and sold. ETFs trade on stock exchanges throughout the day, much like individual stocks, which means prices change in real time based on market activity.

How ETFs Can Help You Reach Your Financial Goals

ETFs are often used to support a wide range of investment objectives, including growth, income, diversification, and risk management. Because there are many different types of ETFs available, they can be tailored to suit different timelines and risk tolerances.

Common goals ETFs can support include:

• Long-term growth through equity-based ETFs that track broad market indexes
  
  
• Income generation through bond or dividend-focused ETFs
  
  
• Portfolio diversification across industries, regions, or asset classes
  
  
• Cost efficiency by reducing management fees compared to many actively managed investments

When used properly, ETFs can form the foundation of a balanced investment strategy or complement existing holdings such as mutual funds or segregated funds.

What Does Trading ETFs Mean?

Trading ETFs means buying and selling ETFs through the market rather than purchasing them at a single daily price. This offers flexibility and control, but it also requires planning, discipline, and a clear understanding of your goals.

At Scrivens, ETF trading is not about reacting to market noise or short-term speculation. It is about using ETFs strategically to align with your financial plan. That includes deciding:

• Which ETFs fit your objectives
  
  
• When to enter or adjust positions
  
  
• How ETFs work alongside your broader portfolio
  
  
• How to manage risk through diversification and allocation

Why Work With Scrivens for ETF Trading?

While ETFs are accessible to individual investors, navigating the choices without guidance can be overwhelming. Thousands of ETFs exist, each with different objectives, structures, and risk profiles.

Scrivens advisors help clients:

• Understand which ETFs align with their financial goals
  
  
• Build portfolios that balance growth, income, and risk
  
  
• Integrate ETFs with other investment and insurance solutions
  
  
• Make informed decisions based on long-term planning, not short-term trends

As an independent firm, Scrivens focuses on advice that is tailored to you, not tied to a single product or provider.

Are ETFs Right for You?

ETFs can be an effective tool for many investors, but they are not a one-size-fits-all solution. The right approach depends on your goals, time horizon, comfort with market fluctuations, and overall financial picture.

If you are interested in learning how ETF trading could fit into your investment strategy, a conversation with a Scrivens advisor is the best place to start.