Volatility is ever-present in the stock market, although investors have ways to manage risks. An asset class that is slightly less risky is an exchange-traded fund (ETF). Canada’s ETF industry had as superb 2021 despite a tumultuous environment. Assets and net new flows reached $323 billion and $53 billion, respectively.
Mark Raes, Product Head at BMO Global Asset Management Canada, said the launching of 202 ETFs was also record-breaking. In February 2022, the S&P/TSX Composite Index has been erratic because market participants are on edge. Rising inflation is a major threat right now.
Income investors, in particular, need to ensure uninterrupted income streams. Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is a solid option because of its dividend track record. Canada’s third-largest bank has been paying dividends since 1832 (192 years).
Elite financial giant
In the last 3.01 years, the total return is 48.22% (13.98% CAGR). FIE’s risk-rating is medium and its main selling point is regular monthly dividend income.
FIE is ideal for frugal investors with short-term financial goals. But for long-term income investors building wealth or securing their financial futures, BNS is the real deal.