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Not only do you get on average better returns, you can do better even when they perform poorly since those funds (in Canada) can charge you anywhere from 1.5% t
by isclever 10y ago
Not only do you get on average better returns, you can do better even when they perform poorly since those funds (in Canada) can charge you anywhere from 1.5% to 3% of your portfolio in fees (MER), while an index fund could charge as low as 0.1%.
https://www.wealthsimple.com/ https://www.wealthsimple.com/ (I'm a customer) has recently expanded into the US from Canada and are one of a group of what is being called Roboinvestors which take these index funds and let you easily invest in them.
Wealthsimple adds on 0.5% fee which is still lower then active funds, my portfolio has a weighted MER of 0.64%.
- marcandre 10y ago0.64% MER is much higher than what you can get with Vanguard. Mutual funds are about 4x less expensive, some ETFs are 10x less expensive.
- isclever 10y agoMy personal view of using Wealthsimple is a stepping stone, I've realise that I've throw away money to the banks with higher then needed MERs and Wealthsimple provide a easy way of transferring my money in and saving money now. When my portfolio is larger and I'm seeing a higher cost with them VS doing it myself I'll look into buying ETFs myself. The lowest bank mutual fund in Canada that I've seen in from Tangerine at ~1% MER, are there ones lower?
- loeg 10y agohttps://www.vanguardcanada.ca/ https://www.vanguardcanada.ca/
- eswat 10y ago> The lowest bank mutual fund in Canada that I've seen in from Tangerine at ~1% MER, are there ones lower? Without having to handle rebalancing yourself? AFAIK then Wealthsimple and Tangerine are already the lowest you'll find without working with ETFs or index funds directly.
- rrdharan 10y agoFWIW Vanguard has a 0.3% AUM option here in the US now. I assume their Canadian counterpart offers something similar?