World ETFs / World Exchange Traded Funds


World Exchange Traded Funds (WETHFs) are a group of stock market index funds that track the performance of global stock markets. Basically, you can invest in world ETFs by purchasing one share of the fund, instead of having to purchase many different stocks in each individual country.

More About World ETFs / World Exchange Traded Funds

Continue reading to learn more about:

How does an international ETF work?
How are you taxed on ETFs?
Can an ETF be traded throughout the day?
How long do you have to hold an ETF before selling it?
What is the single major difference between an international ETF and a global ETF?
More about world ETFs


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How does an international ETF work?


An international ETF is a fund that invests in various companies located in different parts of the world. One way to think of an international ETF is as a simplified index fund. Like any other ETF, an international ETF is bought and sold on a stock exchange like shares and is continuously traded. Because there are no daily portfolio adjustments as with mutual funds, an international ETF allows investors to buy or sell anytime throughout the day at the current share prices.


 
 

How are you taxed on ETFs?


The tax treatment of exchange-traded products such as ETFs depends on whether the ETF is classified as a unit investment trust or a grantor trust for tax purposes. It also depends on whether the ETF's underlying assets are Canadian or foreign.

 

Can an ETF be traded throughout the day?

World ETFs (exchange traded funds) provide exposure to the global stock market through a single fund, offering investors diversification and the opportunity to participate in the economic growth of developed and emerging markets. The World Fund tracks approximately 115 country indexes, representing approximately 85% of the global capitalization, and is designed to be 100% hedged against US dollar movements. World Exchange Traded Funds are able to trade throughout the day while holding positions overnight.

How long do you have to hold an ETF before selling it?

That depends on your broker. Some brokers insist on a minimum holding period, such as 30 days or three months, while others require you to sell only if the fund's market value has changed by 10% or more since your purchase. If you're not sure what your current broker requires, contact their customer service department or check your contract or account agreement carefully.
 
  • What is the single major difference between an international ETF and a global ETF?

    The main difference between a global ETF and an international ETF is that an international ETF holds securities from more than one country, while a global ETF holds securities from more than one continent. This means that an international ETF has exposure to geographical risk as well as market risk.
  • More about world ETFs

    This is an easy way to invest in foreign companies as collectively these funds track hundreds of stocks from different countries around the world. They are low cost, easy to manage and trade like a stock on an exchange just like any other fund. Also, there is no tax consequences until you sell the shares which means you don't have to pay taxes on dividends received while they accumulate in the fund.