For an investor like Alysha, what investment vehicle would be the most cost-efficient for equity market exposure?

An exchange-traded fund (ETF) represents a highly cost-efficient investment vehicle for gaining exposure to the equity market, making it a suitable choice for Alysha. ETFs typically have lower management fees than other investment options, such as mutual funds and segregated funds, primarily because they are passively managed and track a specific index rather than rely on active management to pick stocks.

Additionally, the structure of ETFs allows them to be traded on stock exchanges, which provides flexibility and the ability to buy and sell shares throughout the trading day. This characteristic can contribute to lower transaction costs compared to other investment vehicles that might have restrictions on trading.

Segregated funds, while offering guarantees and potential estate planning benefits, generally come with higher fees due to their insurance-related features. Guaranteed investment certificates (GICs) provide fixed income rather than equity exposure, making them unsuitable for this particular objective. No-load mutual funds, while also cost-effective in terms of management fees, can still be more expensive than ETFs when considering overall costs, including trading expenses and investment diversity.

In summary, for Alysha seeking cost-efficient equity market exposure, an ETF would be the optimal choice.