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The amount of dividends accumulated in the fund, but not paid out to investors.

An investment approach that seeks to exceed the average return of the financial markets. Active managers rely on research, market forecasts, and their own judgement and experience in selecting securities to buy and sell.

One-hundredth of a percentage point (0.01%).

For institutional investors, the bundles of securites exchanged for Exchange-Traded Funds units by the fund company.

The Bid is the highest price a buyer is willing to pay for a security. The Ask is the lowest price at which a seller is prepared to sell a security.

A standard trading amount, usually 100 shares, which has been agreed upon by stock exchanges.

A certificate of debt issued by a borrower that usually pays a set rate of interest for a specific period of time and featuring a guarantee of repayment of principal in full at maturity.

The difference between the price a security is sold at and its original cost.

Cash that a mutual fund will carry to either meet redemptions or seize perceived investment opportunities. Cash drag affects performance because the mutual fund is not fully invested.

The fee charged by a broker to buy or sell stock on behalf of a client.

The companies which from time to time are included in the relevant index.

The dollar value of the Index Shares of Constituent Companies held by the Fund.

The Core Asset Value divided by the number of Units outstanding at the time of the calculation.

The smallest block (usually 50,000) of ETF shares that can be bought or sold from the fund company at net asset value. These are only bought and sold 'in-kind' meaning that when you sell one, you receive a portfolio of securities that approximates the ETFs holdings, not cash.

The regular payment of dividends and other income and capital gains from fund investments.

The practice of investing in several different types of investments over a broad range of industries, sectors, companies, and countries in order to reduce the risk of one investment performing poorly.

Cash per unit adjusted for expected dividends and expenses.

Similar to conventional mutual funds in that they provide investors with an affordable way to invest in a diversified basket of securities. ETFs can be traded throughout the day at changing market prices.

Investments such as bonds or money market instruments which pay a fixed yield (coupon or interest rate) and feature a guarantee of repayment of principal at maturity.

A strategy used to offset investment risk by locking in the price of an asset, commodity or currency to protect against future negative price movements.

A benchmark against which investment performance is measured. The S&P/TSX Composite Index is an example.

A pool of investment money passively managed by professionals and invested in all the stocks in a particular index with the goal of mirroring the return of the index.

Investment style which seeks to replicate index benchmarks in equity and bond markets.

The ease with which an investment can be converted to cash.

The total of all fees and expenses paid or payable by a mutual fund expressed as a percentage of the average Net Asset Value of the fund during the year.

The amount a broker will lend a client to purchase securities.

A vehicle used to denote trends in the securities markets. The most popular in Canada is the Toronto Stock Exchange 300 Composite Index (TSE 300).

In the case of a security, market price is usually considered the last reported price at which the stock or bond is sold.

An investment entity that pools shareholder or unitholder funds and invests in various securities. The units or shares are redeemable by the fund on demand by the investor. The value of the underlying assets of the fund influences the current price of units.

The Net Asset Value of the Fund divided by the total number of Units outstanding.

An agreement which allows the holder to buy or sell a specified security at a specified price by a certain date.

A low-cost investment strategy in which a fund attempts to match - rather than outperform - a particular stock or bond market index. Also known as indexing.

All the securites which an investment company or an individual investor owns.

The specified number of units which will be issued or redeemed by a Fund for a Basket of Shares.

The sale of a security which the seller does not own in the belief that it will fall in value.

The trading symbol assigned by an exchange to a particular security.

Measures the difference in performance between an Exchange Traded Fund and the underlying benchmark.

The portfolio investments are always visible enabling more informed invesment decision making.

The Toronto Stock Exchange.