ZERO COMMISSIONS WHEN YOU TRADE WITH NBDB
National Bank Direct Brokerage is making it even easier for you to access exchange-traded funds (ETFs), with zero commission on all Canadian ETFs at all times, no matter how many trades you place.
Why pay commissions when you can trade for free at NBDB?
Learn more about ETF pricing
Finding an ETF market value
ETF quotes can be read in the same manner as stock quotes. They are available via the ETF Centre in your brokerage account, in newspapers (business section), on the Internet (e.g. brokerage firm websites) or in an app on your smartphone.
Example of an ETF quoted on the ETF Centre via your NBDB trading platform
In this example, the XIU ETF is trading at $17.87. This means that the last trade for this ETF was executed at that price. To the right of that number, you can see the increase of $0.11 (or 0.619 4%) since the opening of markets that day. The trade volume of 413,216 represents the number of XIU ETFs traded since the opening of markets on that particular day.
You will also find more detailed information about the ETF, such as the opening price, the high (day and year) and the low (day and year).
The most important information for a trade is the bid/ask price. If you want to purchase this ETF, you must pay the ask price; if you want to sell it, you will obtain the bid price. The quote that is shown here ($17.87) is therefore not necessarily the price you will receive (or pay).
The different types of ETFs
Investors usually use ETFs for two reasons:
- As a passive way to invest over the long term
- To gain exposure to a short-term trend in a given sector or index (most often used by active investors)
There are therefore several types of ETFs, depending on the strategy you wish to implement. The main ones are:
Simple ETF typically mimics an index called the benchmark. The return of the ETF is therefore correlated to that of the underlying index.
This type of ETF is designed for mid- to long-term investing.
This ETF seeks to generate returns that are equivalent to 100% of the opposite of their underlying benchmark's daily return.
It is designed for very short-term investment strategies.
Leveraged ETF seeks to double the daily return of an index.
Note that inverse ETF can also be used as leverage. In such cases, it would seek to double the opposite of the index's daily variation.
This fund is designed for very short-term investment strategies and is inappropriate for long-term investing.
Actively managed ETF
The objective of an actively managed ETF is similar to that of a mutual fund: it seeks to outperform its benchmark.
It's easy to trade ETFs online with your National Bank Direct Brokerage account.
- First, click Transactions — Stocks. A transaction page will open.
- Then, select the transaction you wish to carry out (buy or sell) and indicate:
- The number of shares of the ETF (not the amount you’re investing)
- The ETF symbol (e.g., XIU)
- The stock market (Canadian or American)
- The price (limit or market price)
- The expiry (if limit price) and restriction
- Then, click Submit.
- Check the information to make sure it is correct and click Confirm.
- Once your order has been submitted, you may view it under Transactions – Current Orders and Instructions.