1. Exchange Traded Funds

2. Exchange Traded Funds (ETF) Trade just like stocks Trade just like stocks Quick and easy to invest in Quick and easy to invest in Investor has the choice of which asset class to invest in Investor has the choice of which asset class to invest in Key differences between ETFs and Mutual Funds are: Key differences between ETFs and Mutual Funds are: The hours ETFs are traded The hours ETFs are traded The price changes of ETFs The price changes of ETFs

3. Exchange Traded Funds (con’t) ETFs are used to reduce firm specific risk ETFs are used to reduce firm specific risk ETFs state legal ownership to stocks ETFs state legal ownership to stocks An ETF officially begins with a market maker An ETF officially begins with a market maker These middlemen assemble the appropriate basket of stocks These middlemen assemble the appropriate basket of stocks The fund manager takes a small fee of the funds annual assets The fund manager takes a small fee of the funds annual assets

4. S&P 60 Index Fund - XIU Comprised of 60 largest and most liquid securities on TSX. Comprised of 60 largest and most liquid securities on TSX. Suited for individual investor due to the smaller contract size Suited for individual investor due to the smaller contract size Barclays Canada receives a fee for acting as a trustee Barclays Canada receives a fee for acting as a trustee

5. S&P 60 Index Fund (con’t) XIU options allow speculators a better opportunity with a limited and known amount of risk. XIU options allow speculators a better opportunity with a limited and known amount of risk.

6. S&P Capped Composite Index Fund - XIC Long-term capital growth Long-term capital growth Comprised of largest and most liquid securities on TSX and other ishares funds Comprised of largest and most liquid securities on TSX and other ishares funds S & P uses industrial classifications and guidelines for selecting securities S & P uses industrial classifications and guidelines for selecting securities 10% cap on issuers 10% cap on issuers Susceptible to same risks as Canadian Equity Fund Index Susceptible to same risks as Canadian Equity Fund Index

7. S&P Capped Composite Index Fund (con’t) Replicates underlying index Replicates underlying index Advantages and disadvantages to this Advantages and disadvantages to this

8. S&P Capped Income Trust Index Fund - XTR Comprised of securities of income trust issuers Comprised of securities of income trust issuers Securities are selected by S&P Securities are selected by S&P Replicates the performance of the S&P/TSX Capped Income Trust Index Replicates the performance of the S&P/TSX Capped Income Trust Index Dividend and capital gains distribution Dividend and capital gains distribution Annual trustee fee is 0.55% Annual trustee fee is 0.55% Governed by a trust agreement Governed by a trust agreement

9. S&P Capped Income Trust Index Fund (con’t) Seek to minimize risk Seek to minimize risk Some risks involved Some risks involved Sector risk Sector risk Fluctuation Fluctuation

10. Thank you Any Question?