Your investing questions, our clear answers.

Our response:

ETFs and guaranteed investment certificates (GICs) are two separate and distinct investments.

A Registered Retirement Savings Plan (RRSP) is an account that can hold many types of investments including exchange traded fund (ETFs) and guaranteed investment certificates (GICs). The funds held within an RRSP can be used to purchase a variety of investments as long as they are considered qualified investments by the Canada Revenue Agency (CRA).

An exchange-traded fund (ETF) holds a collection of investments, such as stocks or bonds owned by a group of investors and managed by a professional money manager. ETFs trade on a stock exchange. Learn about how ETFs work.

A guaranteed investment certificate (GIC) is an investment that works like a special kind of deposit. When you buy a GIC, you are agreeing to lend the bank or financial institution your money for a set number of months or years (the term). You are guaranteed to get the amount you deposited back at the end of the term. Learn more about GICs.

If you want to use money currently invested in an ETF to purchase a GIC, you must first sell the ETF. Speak to a financial advisor to learn more and to confirm any charges that may be applicable. Learn more about how to buy and sell ETFs, and how to buy a GIC. Speak with a registered financial representative for investment advice.