Author Topic: [CAN] TD offers new lower-fee ETFs  (Read 3043 times)

Al1961

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[CAN] TD offers new lower-fee ETFs
« on: March 30, 2016, 01:04:14 PM »
Looks Like TD has launched 6 new ETFs, with management fees ranging from 0.07 to 0.18. I'll have to investigate these a bit more but it looks like I may be ditching the TD e-series mutual funds. Fees appear to be ~30 basis points less than the e-series mutual funds, on average.

Exchange Traded Fund                          Symbol (TSX)     Mgmt. Fee
Fixed Income      
TD Canadian Aggregate Bond Index ETF           TDB         0.18
Equity      
TD International Equity Index ETF                    TPE         0.18
TD International Equity CAD Hedged Index ETF    THE         0.18
TD S&P 500 Index ETF                                    TPU         0.1
TD S&P 500 CAD Hedged Index ETF                    THU         0.1
TD S&P/TSX Capped Composite Index ETF            TTP         0.07

I note that the ETF bond index is different from the e-series bond fund (TDB909). Duration of the ETF is ~7 years vs. ~9 years.

Anyone had a chance to look into these yet?

Al

Heckler

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Re: [CAN] TD offers new lower-fee ETFs
« Reply #1 on: March 30, 2016, 03:35:54 PM »
What will be your transaction cost to buy these?   You might consider small contributions to the mutual funds and once a year sell the MF and buy the ETFs if you pay $5-10 per transaction on ETFs. 

Heckler

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Re: [CAN] TD offers new lower-fee ETFs
« Reply #2 on: March 30, 2016, 04:38:50 PM »
And if you're ok with buying TD ETFs and want to do so due to lower costs, why not go to the favourite Vanguard?

Sarnia Saver

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Re: [CAN] TD offers new lower-fee ETFs
« Reply #3 on: March 30, 2016, 07:19:52 PM »
Why would you assume they are getting rid of the e-series?  Makes no sense for them to get rid of a very popular product which is considerably different than an ETF., despite the underlying holdings being similar, or even exact.  I would wager TD is competing with Scotia's ETFs, not their own e-series.

Heckler

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Re: [CAN] TD offers new lower-fee ETFs
« Reply #4 on: March 30, 2016, 08:40:09 PM »
it looks like I may be ditching the TD e-series mutual funds.

...

Al1961

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Re: [CAN] TD offers new lower-fee ETFs
« Reply #5 on: March 30, 2016, 08:53:02 PM »
What will be your transaction cost to buy these?   You might consider small contributions to the mutual funds and once a year sell the MF and buy the ETFs if you pay $5-10 per transaction on ETFs.

I'm no longer in the accumulation phase, have been retired since 2014. Would make more sense to just roll over my position in one large transaction per investment.

Al

Al1961

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Re: [CAN] TD offers new lower-fee ETFs
« Reply #6 on: March 30, 2016, 09:07:23 PM »
And if you're ok with buying TD ETFs and want to do so due to lower costs, why not go to the favourite Vanguard?

Thanks for your comment. You know, I've never been all that thrilled with the investment options that Vanguard offers in Canada, but I looked again after your comment and I see that there are a few new offerings on their website. Geez, Vanguard funds had a much rougher last 12 months than I did. Fees are virtually the same as the TD products, +/- like .02.

As I'm in the decumulation phase, I also don't want to hold a substantial amount ETFs denominated in a foreign currency, so US listed Vanguard products haven't been on my watch list.

Oh well, I'll try to track down the prospectus' for these funds....

Al

Al1961

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Re: [CAN] TD offers new lower-fee ETFs
« Reply #7 on: March 30, 2016, 09:08:45 PM »
it looks like I may be ditching the TD e-series mutual funds.

...

<grin>

Thanks

Heckler

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Re: [CAN] TD offers new lower-fee ETFs
« Reply #8 on: March 30, 2016, 10:57:36 PM »
Geez, Vanguard funds had a much rougher last 12 months than I did. Fees are virtually the same as the TD products, +/- like .02.


if they track the same index, they should have the same performance.

i.e. TPU tracks S&P500 in CAD with Mgmt fee of 0.1 (MER not posted yet because new)
      VFV tracks S&P500 in CAD with Mgmt fee of 0.08 (MER 0.07)

VFV would outperform TPU by 0.02 if they both closely track S&P500, which VFV did within 0.65 for the past three years.  Seems like the tracking error might be more significant than the Mgmt fee difference.