Herman Ye

ETFs are widely acclaimed for their low fees. Equity ETFs charge an average MER of 0.40% , whereas equity mutual funds charge  1.5% - 2% . Many popular ETFs are even cheaper.  VOO allows you to own the entire  S&P 500 for only 0.03% . Talk about a bargain. How are ETFs able to charge so little?

Most places charge 2% to convert currency. If you're a Canadian investor with Canadian Dollars, purchasing US stocks can be costly. Luckily there's a solution.

Recently, the markets have been incredibly volatile. With stock prices moving violently up and down (mostly down) without pause. On any given day, a 10% change in either direction. This is a time of great uncertainty and investors hate uncertainty . Many will panic and sell, retreating to the safety of cash. With more sellers than buyers, there's a downward pressure on prices. When prices fall, more investors panic and start selling too. This vicious cycle can lead to disaster. To prevent this, or at least to soften the landing, regulators have controls in place. Taking A Break A  circuit breaker  is a temporary pause in trading, enforced during wild market conditions. The idea is to give traders a chance to take a step back so they can make better, more informed decisions. Circuit breakers apply to broad market indices as well as individual securities. Market Level Circuit Breakers Circuit breakers are trigged at a predetermined levels. The S&P 500 for ...

In the midst of market downturns, there's always a huge push for central banks to cut interest rates . Today we'll break down how interest rates work and their impact on the economy.

We've talked a lot about stocks, today let's take a look at the safer side of portfolios and talk about the value of bonds.

With doomsday forecasts dominating the headlines, let's take a step back to understand what "market corrections" are so we can better grasp what's going on.

When buying stocks, there are two main type of orders:  Market Orders and Limit Orders . Let's discuss what these are and which is best for most investors.

Investing is great. With the right approach, it enables you to grow your money with little to no effort, setting you up for a rich future ( pun intended ). I love it so much I made a whole blog about it. Before you start shoving money into the stock market, take a step back to assess your finances. Thinking about the future is smart but it should take a backseat to the present. Investing should start on good financial footing. Meaning two things, you've paid off any high-interest debt and have built a solid emergency fund. Paying Off High-Interest Debt That means credit cards and payday loans, the bad debt . The wealth destroyers that drags down your financial life. Interest so high, making it easy for things to spiral out of control. Credit cards typically charge between 15%-20%, and payday loans are even worst, with rates in the neighbourhood of 700%. The average return from the stock market is between 7%-10%, meaning your money is much better spent paying do...

In one corner you have traders , in the other, investors . These labels are often used interchangeably. Both participate in the stock market but that's where the similarities end. These are two very different groups, with very different outlooks. Timeframe  Traders has their eyes on the now. They frequently buy and sell stocks, aiming to profit through short-term price movements. Taking positions day-by-day, even minute-by-minute. An investor is agnostic to short-term price movements. They see themselves as business owners, investing in companies with long-term growth potential. Operating in decades, not minutes. Passive investors  own thousands of businesses across the globe through ETFs, expecting businesses (as a whole) to grow over time. Traders are sprinters, investors are marathon runners.  Market Timing Traders must make the right trades at the right time. Their concise timelines creates a high pressure environment where everythi...

Safety in investing is often associated with lower returns, no risk, no reward. However, diversification presents an exception to this rule. It's been  shown  that spreading your investments across the globe reduces risk while simultaneously increases your expected returns. "Diversification is the only free lunch in finance"         - Harry Markowitz, Nobel prize winning economist Global diversification is indeed beneficial, but it's important to recognize the added factor it brings to your portfolio. When you own international stocks, you gain exposure to foreign companies AND their currencies, thus you'll need to deal with fluctuations in stock prices and exchange rates. Let's demonstrate this with an example. Carl Buys American  Carl is a Canadian investor who wants exposure to the US market. To do this, he buys SPY, an ETF that tracks the S&P 500. Carl is now the proud (part) owner of the largest 500 companies in America. ...