www.thestar.com - RSS Results of type article
· collected 2026-09-07 · by Unknown
Étienne Joncas-Bouchard, director of ETF and Alternative Strategy at Fidelity Investments Canada, shares advice for DIY investors building an ETF portfolio. He notes that common mistakes include prioritizing diversification over actual exposure to different asset classes, focusing on past performance, and dismissing higher-fee funds. A key point is that fees are already accounted for in the reported performance of ETFs. Joncas-Bouchard also discusses Fidelity's active ETF approach, which uses in-house research and a global team of analysts to identify investment opportunities not captured by passive ETFs.
Written by the local model on 2026-09-07,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
With thousands of exchange-traded funds (ETFs) available to Canadian investors, choosing the right mix of investments can be challenging.
asserted
choosing → trade → investments
We spoke with Étienne Joncas-Bouchard, director, ETF and Alternative Strategy at Fidelity Investments Canada, about what investors should consider, how active and passive ETFs can work together and why the all-in-one ETF is a favourite.
asserted
ETF → speak → one
What are the biggest mistakes you see when DIY investors begin building a portfolio?
asserted
investors → see → portfolio
The biggest one is thinking that just because there are a lot of different holdings, you’re necessarily getting diversification.
asserted
you → think → diversification
Make sure you’re getting several types of exposures, things that work at different times to weather the storm through more volatile periods.
asserted
that → make → periods
The second is screening for past performance.
asserted
second → screen → performance
What worked for the last 10 years might not be what works in the next 10 years.
uncertain
what → work → years
Don’t dismiss a product that is a few basis points more expensive than another.
asserted
that → dismiss → another
All performance quoted, whether it’s on websites like Morningstar, your statements or your brokerage platform, will be after fees.
asserted
it → quote → fees
How does an active ETF work? What role does the portfolio manager play?
asserted
manager → work → role
The main difference is the way the investor purchases the product.
asserted
investor → purchase → product
Like any other ETF, you’re buying it on an exchange.
asserted
you → buy → exchange
There’s fundamental research involved, and unlike a passive ETF, which is allocated according to the market-cap weight of the index, the portfolio manager has the flexibility to do whatever they wish with the inflows that come into the portfolio.
uncertain
that → ’ → portfolio
What sets Fidelity’s approach to active ETFs apart from other providers?
asserted
What → set → providers
Fidelity has hundreds of investment analysts across the world.
asserted
Fidelity → have → world
We have one of the largest research databases, with so many lessons learned along the way from previous analysts.
asserted
We → have → analysts
What are some of the benefits of choosing an active ETF and when may it be a better fit than a passive ETF?
uncertain
it → choose → ETF
You can invest alongside a portfolio manager who has the same investment philosophy as you, or a very different philosophy that can be extremely complementary.
asserted
that → invest → you
The research and company access helps identify opportunities that a passive ETF may not capture.
uncertain
ETF → help → that
An active manager isn’t necessarily following market-cap rules, so they can look beyond the top of the index — sectors like industrials, materials or goldmines, which may have small weights in the index but have performed well.
uncertain
which → follow → index
Passive, market-cap weighted indices may exhibit a degree of pro-cyclical or momentum-like exposure — what has done well becomes a bigger art of your portfolio, and you have no say in that.
uncertain
you → weight → that
An active manager gives you that choice and the opportunity to potentially outperform.
asserted
manager → give → choice
Can active and passive ETFs be used together in the same portfolio?
asserted
ETFs → use → portfolio
Some markets are more efficient and harder to beat, while in others, such as emerging markets and small-cap stocks, active managers have done well.
asserted
managers → beat → markets
You can gain from pairing active and passive to get better diversification and a more complete portfolio.
asserted
You → gain → diversification
Fidelity offers several all-in-one ETFs with different investment objectives.
asserted
Fidelity → offer → objectives
What questions should investors ask before choosing one?
asserted
investors → ask → one
The first question should be: What outcome do I want?
asserted
I → want → outcome
The second is: How do I get to that outcome?
asserted
I → get → outcome
Look at the building blocks used to achieve it and ask whether they make sense over time.
asserted
they → look → time
It’s about what’s in the pudding.
asserted
what → ’ → pudding
Looking ahead, do you think all-in-one ETFs will become the starting point for more Canadian investors?
asserted
ETFs → look → investors
Why have they become so popular?
asserted
they → become → ?
Last year, three of the top 10 selling ETFs in Canada were all-in-one.
asserted
three → sell → one
Investors are flocking to these strategies because with one all-in-one ETF, you get a wide range of market exposures – asset class, style, market cap, geographic and sector.
asserted
you → flock → exposures
Simplicity of use and access, paired with the depth of diversification, is the appeal.
asserted
Simplicity → pair → diversification
