Most Canadians remain unclear about what exchange-traded funds (ETFs) are, according to a report released by the Toronto-based Bank of Montreal (BMO) Wealth Institute on Wednesday.

BMO reports that only 19% of Canadian investors understand ETFs. Comparatively, 58% of Canadians know about guaranteed investment certificates (GIC) and 55% said they understand mutual funds.

“Exchange-traded funds have only been around for the last twenty years so it’s understandable that Canadians are still in the process of familiarizing themselves with them,” said Chris Buttigieg, senior manager, wealth planning strategy, BMO Financial Group, in a release.

More Canadians would invest in ETFs, however, according to BMO, with a little education. BMO’s report states that once ETFs were properly explained to investors 60% said they would add ETFs to their investment portfolios.

Said Buttigieg: “Due to their many benefits, ETFs are a great fit not only for a portfolio in general, but specifically for accumulating wealth for retirement.”

Some of the benefits of ETFs outlined in BMO’s report include: access to a diversified basket of stocks, bonds or commodities; low management fees; transparency of holdings; tax efficiencies.