Mackenzie Investments offers investors innovative choices for building diversified portfolios
Mackenzie Investments started in 1967. They are an independent Canadian asset manager that strives to be the best partner for investors and their financial advisors. Some of their ETF's are performance objectives and some of them are risk mitigation objectives.
Furthermore, their ETF Portfolios are actively managed by the Mackenzie Asset Allocation Team, which seeks to generate optimal returns while managing risk. With their professional expertise, they add value to the ETF portfolios for investors:
- Diversification across asset classes, geographies and investment approaches
- Strategic and tactical asset allocation
- Active currency management
- Best-in-class risk management process
- Ongoing oversight, monitoring and rebalancing
What Risks Are there in ETFs?
Cheaper, more flexible, more transparent Exchange traded funds have advantages, however, these financial products also carry risks.
In general, when you invest in an exchange-traded fund, you are exposed to many of the risks inherent in the underlying securities, as well as to their return potential.
Listed below are just a few of the risks involved with investing in ETFS.
Market risk: The underlying assets of any ETF, whether it invests in stocks, bonds, commodities or currencies, may fluctuate in value. Leveraged ETFs are specifically designed to magnify gains, which means they also magnify losses.
Currency: If you invest in an ETF that trades on a U.S. exchange, you will be exposed to changes in the value of the Canadian dollar versus the U.S. dollar.
Liquidity: Not all ETFs show high levels of trading activity, which means that initiating or liquidating a position may not always be easy and at the last traded price. Because ETFs are publicly traded, investors are exposed to the bid/ask spread.
Tracking error: ETFs that follow an index should deliver approximately the same return as the index, after fees. However, if the fund doesn’t mirror the exact weightings of the index, returns may differ.
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