I welcome input from people who have analyzed or experienced the relative merits of mutual fund index funds and ETF index funds.
Currently, I have my RRSP funds in a Manulife group program which makes available to me four mutual fund index funds. IMF is as follows (with a discount for over $60,000 on deposit in the total account):
Bond 1.298
Canadian equity 1.048
US equity 1.323
International equity 1.398
I realize that the IMF will be less in ETFs but there will also be transaction fees and I’m not sure how these might balance out. Currently, I pay no transaction fees for moving money between funds available to me in the package, or for withdrawing (actually one free/year and then $25.00 per withdrawal), or for depositing new funds.
I like the simplicity of online management of our Manulife accounts and I see it as simple enough that my wife would be able to look after it if I die first (which men tend to do) or am disabled. I think she would find the ETF process rather daunting.
Taking all of this into account, I welcome comments and/or advice, particularly from the numerous ETF enthusiasts who populate the financial blogging world. I see their point but I’m not sure that the addition of transaction costs and the complexity of management would actually put me far ahead of index funds in my Manulife accounts.
Thanks for your ideas.
Currently, I have my RRSP funds in a Manulife group program which makes available to me four mutual fund index funds. IMF is as follows (with a discount for over $60,000 on deposit in the total account):
Bond 1.298
Canadian equity 1.048
US equity 1.323
International equity 1.398
I realize that the IMF will be less in ETFs but there will also be transaction fees and I’m not sure how these might balance out. Currently, I pay no transaction fees for moving money between funds available to me in the package, or for withdrawing (actually one free/year and then $25.00 per withdrawal), or for depositing new funds.
I like the simplicity of online management of our Manulife accounts and I see it as simple enough that my wife would be able to look after it if I die first (which men tend to do) or am disabled. I think she would find the ETF process rather daunting.
Taking all of this into account, I welcome comments and/or advice, particularly from the numerous ETF enthusiasts who populate the financial blogging world. I see their point but I’m not sure that the addition of transaction costs and the complexity of management would actually put me far ahead of index funds in my Manulife accounts.
Thanks for your ideas.