Word of the Day

Exchange-Traded Fund

In the wide and varied family of the thousands and thousands of funds out there, the exchange-traded fund is one of the more consumer-friendly ones.

Unlike mutual funds, exchange-traded funds, or ETFs, behave more like stocks. You can buy into an ETF at any time, and sell it whenever you feel like it. And like a stock, an ETF's value can rise and fall--depending on what the ETF is invested in.What do ETFs invest in? Well, they're typically linked to an index like the Dow Jones Industrial Average or the S&P 500. So, if you had an ETF that trades the same companies that make up the Dow or the S&P, it will rise and fall in value pretty much the same amount as the Dow or S&P.

You can also buy ETFs that invest in other types of products, like bonds, currencies, gold or other commodities. The ETF market has grown considerably in the past few years, so there is no shortage of ETFs to invest in.

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Thursday, July 03, 2008

Prince Edward Island economy to slow amid uncertain tourism season, says RBC Economics

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TORONTO, Jul 3, 2008 (Canada NewsWire via COMTEX) ----Prince Edward Island's economic growth is forecast to slow to the low-to-mid one per cent range for 2008 and 1.6 per cent in 2009, as stiff economic headwinds blow on key industrial sectors, including tourism, according to the latest provincial forecast released today by RBC.

"The 100th anniversary celebrations of the publication of 'Anne of Green Gables' are facing some tough challenges from the strong Canadian dollar, record-high gasoline prices and a weak U.S. economy," said Craig Wright, senior vice-president and chief economist, RBC. "These factors threaten to pour cold water on the economic impact of the event and, more generally, the province's all-important tourism sector."

With only Canadian travellers sustaining growth in visits to the Island recently, the sharp rise in gasoline prices since the spring might well keep even domestic visitors closer to home this year. Nevertheless, the province's economy should continue to benefit from work on infrastructure projects, as well as steady growth in employment.

The main theme of the Provincial Outlook continues to be the different paths the Eastern and Western parts of the country are taking. Record-high commodity prices and strong global demand for resources sustain unprecedented prosperity in the Western provinces, while the strong Canadian dollar, downturn in the U.S. economy and high energy prices continue to cause hardship in key sectors in provinces east of Manitoba. Saskatchewan is projected to lead all of the provinces in economic growth for both 2008 and 2009, followed by Alberta, while Newfoundland and Labrador and Ontario are expected to lag the group this year, but should show some improvement next year.

The RBC Economics Provincial Outlook assesses the provinces according to economic growth, employment growth, unemployment rates, personal income growth, retail sales, housing starts, and the Consumer Price Index.

According to the report (available online as of 8 a.m. E.D.T., at www.rbc.com/economics/market/pdf/provfcst.pdf), provincial forecast details are as follows:

 <<
   Real GDP Housing starts Retail sales Thousands 07 08 09 07 08 09 07 08 09 -- -- -- -- -- -- -- -- -- NFLD. 9.1 0.2 1.3 2.6
   2.6 2.0 8.9 6.0 2.0 P.E.I. 2.0 1.2 1.6 0.8 0.7 0.6 7.7 4.5 3.7 N.S. 1.6 2.0 2.4 4.8 4.7 4.0 4.2 5.5 4.5 N.B. 1.6 2.0 2.5 4.2
   4.2 3.4 5.7 4.6 4.0 QUE. 2.4 1.0 2.3 48.6 47.1 40.0 4.6 4.3 4.4 ONT. 2.1 0.7 2.2 68.1 68.7 59.3 3.9 4.4 4.5 MAN. 3.3 2.7 2.7
   5.7 5.9 4.5 8.8 8.5 7.0 SASK. 2.8 3.7 3.8 6.0 6.6 4.5 13.0 12.0 11.0 ALTA. 3.3 3.1 3.0 48.3 38.3 35.1 9.3 4.5 7.0 B.C. 3.1
   2.2 2.9 39.2 37.2 30.5 6.7 4.5 7.5 CANADA 2.7 1.4 2.5 228 216 184 5.8 5.2 5.6 Employment CPI 07 08 09 07 08 09 -- -- -- --
   -- -- NFLD. 0.6 2.0 0.5 1.5 2.5 1.4 P.E.I. 1.0 1.3 0.3 1.8 3.2 1.5 N.S. 1.3 1.0 1.9 1.9 3.0 1.6 N.B. 2.1 1.6 1.0 1.9 1.8 1.5
   QUE. 2.3 1.4 1.3 1.6 2.2 1.4 ONT. 1.6 1.5 1.3 1.8 2.0 1.5 MAN. 1.6 2.1 1.7 2.0 2.0 1.5 SASK. 2.1 2.4 2.3 2.8 3.4 2.6 ALTA.
   4.7 3.0 2.1 5.0 3.3 2.5 B.C. 3.2 2.6 2.5 1.8 2.0 1.5 CANADA 2.3 1.9 1.6 2.1 2.3 1.6 >>

SOURCE: RBC

Craig
   Wright, RBC Economics, (416) 974-7457; Robert Hogue, RBC Economics, (416) 974-6192; Jackie Braden, RBC Media Relations, (416)
   974-2124

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