ETFs (Exchange-Traded Funds) are a product that owns and manages its own basket of assets (stocks, bonds, commodities, etc.). Ownership of those assets is divided into individual shares, which you are able to purchase just like you would a stock. When you purchase shares of an ETF, you’re participating in the gains and losses of the underlying assets that are held within the ETF. If they have an overall increase in value, the value of individual shares will typically rise, and investors will earn a profit. And vice versa; if the assets have an overall decrease in value, individual shares drop in value, and investors incur a loss.

Yes, you can buy and hold any ETF that is listed on a designated stock exchange in a registered account.

While they are similar, ETFs have a few key differences that set them apart from mutual funds. Possibly the most important distinction is that ETFs typically have significantly lower management fees. Another difference is that mutual funds can only be traded once at the end of the trading day. ETFs on the other hand, trade on the stock exchange and are available to be bought or sold at any time as long as the market is still open. Finally, you can purchase just one share of an ETF if you wish, where most mutual funds have a minimum amount you must initially purchase.

Yes, ETFs can pay dividends. If the companies held within an ETF pay a dividend, the ETFs will pass the dividend onto you. There are also ETFs built entirely around a dividend strategy, they include fixed income products such as bonds or GICs.