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I've owned the TD e-series of index funds for around 3 years now. I was telling a friend about them and he asked about the return. Info on TD's site shows that the US Index one has a mostly negatives across the performance over time chart. I wonder how I can explain to him this is a good investment as I'm not even sure right now!
 

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Does your friend know what happened in the markets during the past 3 years?
E-series funds are great. They have a low tracking error and you can buy without commission. Really low MER. For portfolio under 25K, where else can get a product better than that?
 

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Index funds and ETFs are supposed to dutifully track the underlying index with mininal fees and minimal tracking lag.
The % return of a fund is not a reflection of the fund, but of the underlying index.
 

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try benchmarking it against the average return of actively managed US Equity funds for the same time period - I'm pretty sure the index fund will come out ahead.
 

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Also have to factor in the appreciation of the CAD relative to the USD (unless you're looking at the currency neutral fund).
 

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I have held a portfolio of ETF's for some time now and have just now returned to where I was back in May of 2008.

28 months of no net gain but during a period of extreme market volatility.

If you are going to invest in the stock market, you have to expect volatility but the past few months have pretty extreme, to say the least.

Nobody knows what the future holds but there are many uncertainties out there. If you have a long time horizon, there is little to worry about but we older geezers are in a shakier position.

What if the next ten years are like the last ten when the Dow effectively made no gains???!!!

You pays your money and you takes your chances!!:confused:
 

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"If you are going to invest in the stock market, you have to expect volatility but the past few months have pretty extreme, to say the least."

That's exactly what you want in the markets, at least what I want.
Wait till the markets have a really bad run, then buy, cause it will almost always be followed by a good run. Then sell, cause it will be followed by another bad run. You get the picture. :D
 

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Then why do so many 'experts' claim that market timing is a losing strategy?

You have to know when to hold them and then know when to fold them which is easier said than done.

If you have made money with market timing strategies, then you have proven many of these experts to be just plain wrong!!:confused:

Warren Buffett claims that you have to minimize your trading activity to maximize your long term success.

So, who is right--the buy and holders or the market timers?
 

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Timing is hard for people with large amounts to invest. Buffet seems to know what he is doing, but I don't think the same can be said of the rest of us. Most retail investors just break even because they buy high and sell low.
 

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another option is to go for best in class mutual funds with very low MER. i hold PH&N bond fund and Beutel Goodman bond fund which have MER of about 0.6%. not that much higher than most ETFs. TD e-series funds have MER of about 0.3% and I hold its bond and equity index. so compare the performance over short, mid and long term and decide if paying extra MER is worth it for you.

would members advice a different fund/ETF for fixed income and canadian equity index portion? why?
 

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Why do you hold three broad-based bond funds?

I would think that any one such fund would provide you with adequate diversification and doubt that you are gaining much, if anything, by holding three such funds.

I hold more than one fixed income fund but ONE is a broad-based bond fund, another is a high yield corporate bond ETF, another is an emerging markets debt fund etc.
 

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Experts that recommend "buy and hold" are paid on the asset size. Brokers get paid on trading so they seldom recommend B&H. It is possible to make money trading but it takes a lot more work than B&H. And it usually involves a degree of luck because of the random nature of markets.
 

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hmm.. Investment is most successful when its business like... a stock represents a fractional ownership of a company, not simply paper to be pushed around hourly.. never forget that
 
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