The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: retiredmtber on March 26, 2012, 08:04:27 AM

Title: low expense ratio funds for Canadians
Post by: retiredmtber on March 26, 2012, 08:04:27 AM

I have a very good Canadian friend who is looking to invest a large amount of money soon. He has not lived in Canada for many years as he has lived and worked abroad. He has no intention of returning to Canada to live.

He sent me a proposal he just received from RBC to manage his money and the fees, expense ratios are very high. What alternatives does a Canadian have. He is looking to probably put 60+% in fixed incomes, rest in equities.

I am going to chat with him soon and was hoping to give him a better alternative.

Thanks

Title: Re: low expense ratio funds for Canadians
Post by: Aloysius_Poutine on March 26, 2012, 10:39:19 AM

I have heard good things about TD's e-series funds' MERs. However, I'm not an investor yet.

Let us know what you find out :)

Title: Re: low expense ratio funds for Canadians
Post by: HumanCalculator on April 01, 2012, 10:10:33 AM

You can check canadians ETFs.

iShares has a lot of them. I personnally own XIU.

Title: Re: low expense ratio funds for Canadians
Post by: Matt K on April 02, 2012, 06:01:47 AM

+1 on iShares ETFs.

I am in the process of selling my current high MER funds and will be moving (I think) to a mixutre of CDZ (Aristocrats fund: In order to be in the fund the stock has to have paid and raised divideneds every year for the past 5 years - so it is an index that focuses on longer term perforamance companies) and XDV (which is similar, but doesn't have the same rules as the Aristocrats, and is very heavily (50%) biased towards financial institutions).

Because these are fairly small indexes they aren't as low risk as a full market index, but they fit my personal investing plan.

Title: Re: low expense ratio funds for Canadians
Post by: MMMdude on April 02, 2012, 11:25:52 PM

On the equity side, I would say do not buy Mutual funds period!!!  I own XIU - alot of it actually.  At the moment, it's yielding around 2.2% I believe and that would of course be in the form of tax advantaged dividends.  I do have some mutual funds from way back when I have been meaning to sell - XIU accomplishes the same thing with miniscule fees.  XIC invests more broadly in I believe the TSX 300.  I don't like XDV as way too much exposure to Financials.

On the bond side, I'm a big fan of PH&N funds.  Fairly low MER's and a fantastic long term record. 

Title: Re: low expense ratio funds for Canadians
Post by: Captain and Mrs Slow on November 23, 2012, 11:30:16 AM

Canadian Couch Potato would be a good starting point as well.