Jonathan Chevreau: Why you should always look under the hood of your ETFs

Robo-advisers can relieve investors of the burden of choosing from the growing number of ETFs, but it's always prudent to check on some basics.

If you’re considering a robo-adviser, you\’ve in effect also chose to use exchange-traded funds, because most of the new online wealth management services use ETFs his or her building blocks.

As in the glory times of mutual funds in the 1990s, when one role of financial advisers was to help confused consumers select from among the a large number of funds, so do 21st century robo-advisers relieve investors from the burden of choosing from the growing number of ETFs – a lot more than 400 trading in Canada alone.

But just like it was always prudent for mutual fund investors to check the actual stock holdings of equity funds, it can also pay to appear under the hood from the ETFs being chosen on your behalf by a robo-adviser.

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