Top Investing Mistakes: Common Analytical Errors Canadian DIY Investors Make

Jan 13, 2026

Danielle Nuzzel, an ETF educator at BMO ETFs, shares her expertise on common mistakes made by Canadian DIY investors. She cautions against relying on a single performance metric when analyzing ETFs. The discussion includes linking investments to personal goals and risk profiles, understanding fees, and uncovering hidden costs. Danielle highlights essential steps for comparing funds and the importance of examining underlying index track records. She also advises on how to avoid emotional biases in investing and stresses the need for thorough due diligence.

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ADVICE

Match Investments To Goals And Risk

Link every investment to your goals and risk profile before buying it.
Danielle advises that strategies like covered call ETFs trade growth for income and may not match growth objectives.

ADVICE

Follow A Structured Due-Diligence Checklist

Do formal due diligence: check firm reputation, strategy, track record, risk metrics and fees before choosing an ETF.
Use comparison tools (e.g., BMO ETF compare) to evaluate multiple funds side-by-side.

INSIGHT

Risk Labels Are Quantitative, Not Marketing

ETF risk ratings follow a quantitative process using standard deviation and are reviewed annually.
Danielle explains regulators require asset managers to re-evaluate risk profiles each year when filing prospectuses.

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With the new year kicking off, investing is top of mind for many of us, especially with all the new contribution room that many of us just received in our different registered accounts here in Canada (TFSA, RRSP, RESP, FHSA).

Now before we decide what to invest in with our contributions this year, I thought it would be wise to look into:

-What are some of the major and common mistakes that Canadian investors make when they do their own analysis on which investment to buy?

-When we are looking to compare two investments, whether it's a mutual fund, or an ETF, what is the process that we should follow to make sure that we are doing appropriate and thorough due diligence?

-Are we paying near the low-end vs the top-end of the spectrum when it comes to fees? What would be considered a "high" fee vs a "low" fee for the Canadian investor?

-Are there other charges or fees that we should be mindful of in addition to just looking at the MER for an ETF or mutual fund?

-How to properly compare investments that we are considering?

We go into all that and more in this episode. Enjoy!

Resources Mentioned:

ETF Comparison Tool

ETF Guide: What I Invest In and Why?

Disclaimer:

This podcast is sponsored by BMO Exchange Traded Funds. Build Wealth Canada is compensated under this arrangement by BMO ETFs.

This communication is intended for information purposes only. This update has been prepared by Build Wealth Canada and represents their assessment at the time of publication. The comments contained do not necessarily represent the views of BMO Global Asset Management (BMO GAM). The views expressed by the host and the interviewee are subject to change without notice as markets change over time. The information contained herein is not, and should not be construed as, investment advice to any party. Investments should be evaluated relative to the individual's investment objectives and professional advice should be obtained with respect to any circumstance.

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by BMO GAM. Any reference to a particular company is for illustrative purposes only and should not be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any investment fund managed by BMO GAM is or will be invested. This social media network is an independent organization and is not affiliated with BMO GAM.