Hey, I currently have investments through TD and pay 1.25% MER for an activity managed fund. I have been thinking about switching to TD S&P 500 Index ETF for 0.07% MER. Thoughts?
@jim0488 Switch ASAP to index funds. Over long stretches, more than 90% of managed fund lose to index funds and with fees involved I’m pretty sure it’s close to 99%. Managed funds are to people with money what dealership mechanics are to car owners. Taking advantage of people who don’t know better. And I’m speaking as a person who’s been almost tricked by banks and dealerships. I was lucky to have finance and mechanic buddies.
@blueliti If I owned a ford I'd take it to the cheapest mechanic but if I owned a Ferrari I would only take it to a Ferrari mechanic.
Some people would rather their investments be a Ferrari than be a ford investment.
That being said, don't pay a Ferrari mechanic price for something that is not performing like a Ferrari.
If it was missed, if you are getting the returns you want based on the expense ratio you pay then stick to it but if you are not and want something reliable switch to lower fees less frills. And definitely stop paying high fees if you are not getting appropriate results.
@jim0488 Mutual funds at the end of investment yield like half the amount cause the costly fees. Defiantly buy into ETFs yourself and cancel the bank out of your deal.
