All about Canadian investments. Learn the ins and outs and get the latest news.
Latest News
Why healthy money conversations are key to building wealth together Jul 8th
When it comes to building wealth, most people focus on investments, debt levels, or market performance. But what if the real threat to your financial future isn’t any of those? According to Co-authors of Money Together, Heather and Douglas Boneparth, the biggest risk is hiding in plain sight: the .... More »
SpaceX IPO bets $2 trillion on Musk's ambitious rockets-to-AI vision - Reuters May 21st
SpaceX IPO bets $2 trillion on Musk's ambitious rockets-to-AI vision ReutersSpaceX files for stock market debut that could make Elon Musk a trillionaire BBCSpaceX, OpenAI valuations would mean they leapfrog Berkshire Hathaway on first day of trading CNBCSpaceX is cap.... More »
Making sense of the markets this week: May 19, 2024 + MORE May 17th
Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.
Inflation is down, so stocks go up
The correlation between lowering inflation rates and inflated stock prices conti.... More »
The Pokémon Company is investigating 'Pokémon with guns' satire Palworld - Yahoo Canada Finance Jan 25th
The Pokémon Company is investigating 'Pokémon with guns' satire Palworld Yahoo Canada FinancePalworld Has Sold An Astonishing Number Of Copies In Five Days KotakuThe Pokémon Company Announces It Will ‘Investigate’ Palworld IP And Assets ForbesHow Palworld or ".... More »
Alberta Child and Family Benefit payment dates in 2025 Apr 15th
The Alberta Child and Family Benefit (ACFB) is a program administered by the Canada Revenue Agency (CRA) on behalf of the government of Alberta. The ACFB was introduced to assist lower-income and middle-income families with children under 18. Eligible families can receive direct financial assistance.... More »
PlayStation Canada promises more PS5 stock by the end of the year MobileSyrup10 next-generation games to keep your PS5 or XSX humming this holiday Financial PostHere’s December 2020′s PlayStation Plus Games KotakuAnother PS5 system update is here which “improves system performance” GamesradarHow Sneaker Culture Predicted PS5 and Xbox Series X Scalpers IGNView Full coverage on Google News
Switching from mutual funds to ETFs
– moneysense.ca
Are you considering switching from mutual funds to Exchange Traded Funds (ETFs)? If so, you are not alone. Growing numbers of Canadians are making the move. This is evidenced by 2020 fund statistics published by The Investment Fund Institute of Canada, which show net redemptions of mutual funds during September, while net purchases of ETFs were $669 million for the month and $32 billion year-to-date.
Three factors are driving this shift in investor behaviour. First, there is growing awareness that high costs embedded in mutual funds can severely limit their long-term returns. For example, consider a mutual fund with a typical 2% management expense ratio (MER), which earns an average compound annual return of 6% before costs. Investors selling their fund after 30 years would keep less than half the fund’s pre-fee total return with the rest consumed by fees. In contrast, investors in an index ETF with a typical 0.20% MER with the same 6% pre-fee return over 30 years would retain over 90% of the total return (you can run your own scenarios on the T-Rex Score calculator)…
Three factors are driving this shift in investor behaviour. First, there is growing awareness that high costs embedded in mutual funds can severely limit their long-term returns. For example, consider a mutual fund with a typical 2% management expense ratio (MER), which earns an average compound annual return of 6% before costs. Investors selling their fund after 30 years would keep less than half the fund’s pre-fee total return with the rest consumed by fees. In contrast, investors in an index ETF with a typical 0.20% MER with the same 6% pre-fee return over 30 years would retain over 90% of the total return (you can run your own scenarios on the T-Rex Score calculator)…
