Canadian Index Funds


A

Avrum Lapin

A Canadian friend asked me to look at her portfolio and I was disturbed
to find a 7o year old with 30% of her portfolio invested in fund s which
had the words precious metals or futures in their names. She wasn¹t
aware of the risks involved. I also saw that her planner seemed of have
a lot of churn. She wasn¹t aware that the portfolio had shrunk from
where she thought it was

My recommendation was that she go to no load low expense index funds
approximately 60% equity and 40 percent 3-5 year bond funds.

When I started looking at Canadian Index funds I was floored by the
expense ratios (close to 1%)

I couldn¹t find any web page with a tabulation which listed Cdn Index
funds with loads and expense ratios-and say 3 year returns (a la WSJ or
Morningstar) The only one that looked reasonably good was a TD S&P/TSE
ETF.

Is there a listing somewhere?

My initial advise is that she take the time and go into the banks and
see what they suggest and ask questions and try to get educated.

If she were in the States I would tell her to go to Vanguard, Schwab, TD
Waterhouse or Fidelity (based on office location) and give here specific
funds)

I don¹t think she can justify a fee based planner. I suspect that MPT
allocation would barely cover the fee.

Without further resources I would probably find a TD bond fund or
laddered GICs for her fixed income and send her to TD Canada Trust.

She is currently drawing about 6% of her principle which in CDs would
give her about 16-17 years which she feels is more than adequate.

Please no solicitations.
 
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S

Sarah Holland

Avrum:

Have you tried:
www.morningstar.ca
or
http://www.globefund.com/

Both are Canadian listings of mutual funds with filtering abilities.

TD sounds good (especially as she may be happier with a bank), so does using
iUnits. You also might be interested in the Phillips, Hager & North family
of funds, as I understand it, this would be most similar to the
Vanguard-type thing in the States.

Hope this helps,

Sarah Holland
 
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G

Gary

Hey there.

Both sites you recommended are fantastic resources for Canadian Mutual
Funds.

With respect to Canadian Index funds, the iUnits or the TD ETF's are
probably a better way to go than an actual index fund because of the lower
fee structure on the ETF's.

However, given the lack of efficiency and the low liquidity in a lot of
Canadian stocks, an investor may be better off from a risk adjusted basis by
investing in an actively managed Canadian Fund rather than the ETF.

Some Canadian Equity funds to look at might be Fidelity Canadian Disciplined
Equity, Mawer New Canada, CI Signature Select Canadian, or Elliott & Page
Growth Opportunities.

Just a thought.




Sarah Holland said:
Avrum:

Have you tried:
www.morningstar.ca
or
http://www.globefund.com/

Both are Canadian listings of mutual funds with filtering abilities.

TD sounds good (especially as she may be happier with a bank), so does using
iUnits. You also might be interested in the Phillips, Hager & North family
of funds, as I understand it, this would be most similar to the
Vanguard-type thing in the States.

Hope this helps,

Sarah Holland
 

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